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A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
A 10 Minute Briefing
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A 10 Minute Briefing

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DIY Early Dispute Resolution

DIY Early Dispute Resolution

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  • 1. Catalyst MediationPeople who are good with conflict Early Dispute Resolution Initiatives A 10 Minute Briefing Press the space bar to move through the slides at your own speed. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 2. Catalyst Contents MediationPeople who are good with conflict Summary Background Scale of the Problem Legal Implications Employment Act 2008 Chartered Institute of Personnel & Development Early Dispute Resolution Risk Management Approach www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 3. Catalyst Summary MediationPeople who are good with conflict Conflict in any workplace is a costly fact of life. It can start for any number of real or imagined causes and will affect staff personally and in their capacity to work. Which will affect your organisation – from the lowering of efficiency or accuracy, to the loss of a day’s work, or possibly a more prolonged absence, and possibly the costs of formal complaints and grievance procedures, or the risks of employment tribunal or civil court claims, and if they leave, you will have the costs of recruitment, temporary staff, retraining, under strength teams …………. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 4. Catalyst Summary MediationPeople who are good with conflict The evidence suggests the most cost effective way to manage conflict is to train ….. managers in “people management” skills to nip conflict in the bud, plus … a small team in dispute resolution skills, to manage the more difficult cases. With support from senior management, a sensible review of existing policies and the right training and support, organisations can and do shift their cultures to one of early, informal, low cost problem solving. As we will demonstrate later, in times of financial restraint, investment in skills which will improve efficiency and reduce costs, has to be worthwhile. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 5. Catalyst Background MediationPeople who are good with conflict Conflict at work is growing and increasing in cost Roughly half the causes of conflict between colleagues are attributable to “systemic” elements – those caused by factors within the organisation’s structure and control policies. The other half is caused by misunderstandings, assumptions and poor communication. But whatever the cause, real or imagined, conflict causes stress and if not resolved early, creates the costs of absence or the management of formal grievance or disciplinary procedures. So how big is the problem…………………………………………. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 6. Catalyst The Scale of the Problem MediationPeople who are good with conflict “We all experience pressure regularly – it can motivate us to perform at our best. It is when we experience too much pressure and Health & feel unable to cope that stress can result.” Safety “About 5 million workers in the UK report feeling “extremely Executive stressed at work”. “Under current trends, days lost through stress-related illness in 2009 could have reached 13.6m days – more than in 2007 during the 3 day week.” “£300 million was the estimated cost of stress related absences from work to Scottish Employers last year” Scottish Mediation “£58,302,969 was the cost of litigation to Scotland’s local authorities Network and the health service” www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 7. Catalyst The Scale of the Problem MediationPeople who are good with conflict CIPD employer surveys suggest that: • businesses spend almost ten days on average dealing with an individual tribunal claim (including 7.7 days senior managers’ Chartered time ). (2007) Institute of Personnel & • 44% of UK employees feel under excessive pressure at Development work at least once a week, often leading to stress and time (CIPD) off work. (2008) • Stress is the second biggest cause of short-term absence for non-manual workers. (2009) “Annual cost of stress and stress-related illnesses: estimates CIPD & CBI range from £5 billion to £12 billion” Legislation has also increased, from three main sources …………… www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 8. Catalyst The Legal Implications MediationPeople who are good with conflict Enforcement Action: prohibition notices, criminal prosecution HSE Personal Injury Breach of contract Civil Court Protection from Harassment Act 1997 Unfair or Constructive Dismissal Equalities Act 2010 Discrimination (sex, race, disability, age) Employment 2008/2009 Maximum award Average award Tribunal Unfair Dismissal £76,536 £8,058 Race Discrimination £68,991 £14,566 Sex Discrimination £131,466 £11,263 Disability Discrimination £227,208 £19,523 Age Discrimination £12,124 £3,334 But employment legislation is not all bad news ……………………. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 9. Catalyst Employment Act 2008 MediationPeople who are good with conflict The Gibbons review of the 2004 Act concluded it was making formal procedures overly complex and costly. So the 2008 Act opened the way for informal, lower cost options, through... …… The ACAS Code of Practice “Employers and employees should do all that they can to resolve disciplinary and grievance issues in the workplace. “ “Where this is not possible employers and employees should consider using a third party to help resolve the problem.” “The third party need not come from outside the organisation but could be an internal mediator.” “An employment tribunal should only be a last resort .” www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 10. Catalyst Employment Act 2008 MediationPeople who are good with conflict “In some cases early use of an internal or external mediator may be a helpful alternative to the use of formal procedures, particularly when dealing with grievances.” “It is good practice to consider dealing separately with issues involving bullying harassment or whistle- blowing. Mediation may be particularly useful in these types of cases.” (Add discrimination to the list from CIPD findings). So what is internal mediation …………. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 11. Catalyst CIPD Guide to Mediation MediationPeople who are good with conflict In their Guide, published with ACAS to coincide with the new Act, CIPD described mediation as: “A form of dispute resolution in which a third party from inside or outside the workplace helps people reach a mutually acceptable agreement” OR “A sudden outbreak of commonsense” www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 12. Catalyst CIPD 2008 Survey MediationPeople who are good with conflict Their 2008 national survey of 800 organisations suggested that: 90% said informal discussions were the best way to resolve conflicts. 43% had used mediation before 2008, of which  50% use external mediators exclusively  35% train either managers, employees, or employee representatives to act as mediators Internal mediators were used more in large organisations and those with 50-250 staff. So the use of internal mediation is reasonably high and growing www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 13. Catalyst CIPD 2008 Survey MediationPeople who are good with conflict The survey also suggested that: Reasons for using mediation : repairs relationships in the workplace (83%) prevents cost of defending tribunal claims (50%) reduces the stress of formal procedures (73%) Mediation was most suitable for: relationship breakdown (86%) bullying, harassment (74%) discrimination (48%) performance issues (26%) So how does EDR work …………. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 14. Catalyst Early Dispute Resolution MediationPeople who are good with conflict From a chat over a cup of tea to a full tribunal hearing, as each stage is employed, so all sorts of implications arise. So as with many risk management procedures, the earlier you employ “mediative skills”, the better. Time Stress Absenc e Hence early dispute resolution must be the logical goal. Cost Cup of Manager as Internal External Formal Lawyer Tribunal Coffee Mediator Mediator Mediator Grievance etc Negotiations Judgement www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 15. Catalyst The Effect of Training MediationPeople who are good with conflict “Celebrating the effective management of conflict at work” “Our research shows a clear link between training in conflict management and conflict’s impact as a catalyst for positive change. “Among all employees, 76% have seen conflict lead to a positive outcome, such as better understanding of others (41%) or a better solution to a workplace problem (29%). Global research report by OPP® in association This figure rises to 84% and 81% in Brazil and the US – where with the CIPD July 2008 training (in conflict management) is most common. Belgium and France, where employees experience the least training, also have the lowest incidence of positive outcomes.” www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 16. Catalyst Creating Culture Shift MediationPeople who are good with conflict The effect of any EDR program should be that over time the vast bulk of conflict is resolved early, through informal Trained Line Trusted Structured Managers Individuals Networks networks. Responsibility for resolution is passed back down to managers – who now manage their people more Resolution Informal effectively. Early Mediation Informal Mediation Formal The HR and Legal departments, neither of whom should be “conflict managers”, can Formal Processes return to their main tasks. The organisation becomes a more efficient, creative place to work, as pressure is managed before it becomes stress . www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 17. Catalyst Cost Efficiencies MediationPeople who are good with conflict CIPD’s 2008 research showed larger organisations spend up to 350 “man days” a year on disciplinary and grievance cases and tribunal applications. If this equated to 1.25 people, then some of the costs would look like this: A basic salary of say £40,000 Add NI, pension etc £20,000 Legal advice (say£2,500 x 4 cases a year) £10,000 Legal costs for one tribunal £ 5,000 Cost per year £75,000 An outline budget to set up an internal team could be like this: Strategic support £ 2,000 2 day “Communication Skills” Course for 20 managers £ 6,000 6 day Accredited Mediator training for 6 people £12,000 CPD 15 hours for 6 mediators £ 3,000 Year 1 cost £23,000 www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 18. Catalyst Cost Efficiencies MediationPeople who are good with conflict Ministry of Justice 2008/9 – Time Saved Trial use of mediation in civil court Reduction in Court staff / management time Traditional case - 35 days Mediated case – 3 days Speed of resolution Traditional case – 84 days Mediated case – 28 days UK Government Departments - Lower Costs Use of mediation vs civil litigation 2007/8 disputes mediated – 374 ; 75% success rate 2008/9 disputes mediated – 314 ; 82% success rate 2008/9 estimated savings – £90.2m www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 19. Catalyst Mediation Model – Low G MediationPeople who are good with conflict Spread 1. This model works best if the incidence of grievances (G) is LOW. People Management 2. reduces the number of future conflicts. Skills 3. starts by training - as many managers and union reps as possible; from a cross section of the organisation; over a two day “man management” skills course. Manage Occasional With External 4. uses a fixed priced external mediator to resolve occasional serious High Conflict Mediators cases. 5. raises staff awareness of aims and methods. 6. trains in-house mediators in year two – if needed. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 20. Catalyst Mediation Model – High G MediationPeople who are good with conflict Manage 1. This model works best if the incidence of grievances is HIGH. Serious Conflicts First 2. manages serious cases to demonstrate cost effectiveness. 3. starts by training no more than 8 in-house mediators; from employees and trades unions at all levels ; over a six day accredited skills course; 4. has a fixed price contract with an external mediator to work with the in- house team to resolve very difficult cases. “Man Management” Base of Managers Amongst Wide 5. raises staff awareness via the intranet and other internal communication Develop Training methods (e.g. newsletter) and by talking to existing networks (OH, mentoring, union groupings etc). 6. Develops management training in year two. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 21. Catalyst Who’s Doing It Already MediationPeople who are good with conflict These are some of the organisations with either well established, new or “in train” internal EDR initiatives in Scotland ……………………. Western Isles Council ..and there are more on the way – will you be one of them? www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk
  • 22. Catalyst Thank You MediationPeople who are good with conflict Thank you for taking the time to view this briefing. If you have any questions about the detail of this type of initiative, please let us know through the contact details at the bottom of this page. www.catalystmediation.co.uk Registered in Scotland No. SC 273815 jeremy@catalystmediation.co.uk

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