2 days ago
- Business
- Business News Wales
The Value of Early Resolution
Having been involved in industrial relations in some form for around 40 years, it's hard to identify a time when there has been so much political, economic and social focus on it, as there is currently.
The Labour government has centred 'rebalancing power in the workplace' at the heart of its growth strategy with the comprehensive Employment Rights Bill introducing a new wave of rights for workers and regulations for trade unions.
While employers have highlighted risks of increased costs, the direction of travel the government has committed to should provide an impetus for employers to get ahead of these risks by auditing their current employee relations systems and processes.
Even without these new rights, there is an incredibly strong argument for managing workplace disagreements better.
Analysis by Acas shows that the cost of workplace conflict to UK employers is estimated to stand at £28.5 billion, the equivalent of £1000 for every employee.
Even before any new employment rights are brought in, that's a powerful case for improving how we resolve workplace level disputes.
When workplace issues escalate and become formal disciplinary or grievance processes, costs, both financial and emotional, escalate significantly.
Anyone who has been party to these processes will understand that these are far from pleasant experiences for managers or workers and the more it escalates, the more costly they become. It does seem to be the case that as escalation has become more prevalent, we've lost the skills to disagree well and resolve issues quickly and informally.
Acas's 2025-25 Annual Report shows that it dealt with over 117,000 individual disputes, an increase of 13,000 on the previous year, with the figure the highest since the Covid pandemic.
There's much evidence to support a better way of resolving conflict. New Acas research carried out by The Social Agency outlines a series of values and characteristics that can prevent issues escalating into costly and damaging formal processes.
Because disagreement happens wherever there are human relationships it's critical that we're able to manage concerns as amicably as possible through early resolution conversations. Our research suggests that, while there is no single approach that works best and no one-size-fits-all solution, there are principles that consistently apply.
Critically, informal resolution must be early, close to where the issue arose and voluntary. There are scenarios where a formal process is the right one, but there are many cases where a direct, honest and open conversation can lead to a satisfactory solution. The key goal is to create a space where people feel listened to, and their concerns heard and acted upon.
Our research too showed that language mattered. The word 'conflict' itself can induce a defensiveness, and any talk of 'grievance' can trigger a sense that the conversation is not informal at all, but merely the first stage in that formal process.
The type of conversation for early resolution is, and should be, very different from any formal process. Grievance or disciplinary investigations are ultimately about ascertaining facts and then making a judgement. Early resolution conversations should be about understanding ill-feelings, identifying the basis for those feelings and what will resolve the concern. That includes appreciating that different parties may see things differently.
These types of conversation require different skills. Managers are often trained in leadership, managing performance, absence or development. Early resolution conversations require a range of skills we don't often talk about: empathy, compassion and emotional intelligence.
Environmental or cultural factors can be an enabler or a barrier, too. For early resolution conversations to take place, let alone to work, there needs to be a level of trust. For workers to have confidence that they will be heard and issues resolved, they need to feel a sufficient level of psychological safety to raise issues in the first place.
This level of trust can take a long time to gain and can be lost very quickly. Acas is there to help organisations resolve conflict when it emerges, and we also help employers to establish the culture and systems that prevent disputes arising in the first place.
The case for trying to achieve it is overwhelming. Early resolution may not always be the right course, and it may not work, but where it does, there are huge financial savings as well as huge emotional gains to be made.
