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A 10 Minute Briefing


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A 10 minute introduction to the benefits of introducing an early dispute resolution initiative into your workplace

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A 10 Minute Briefing

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