The Chartered Institute of Personnel Development, CIPD, recognises the significance of effective grievance handling for employees and employers as follows;

Stress reduction

Handling grievances effectively could assist in reducing stress for employees and employers. When organisations effectively handle grievances on time, they can decrease anxiety and frustration feelings among employees (Consult HR, 2018). This could enable them to dwell on their tasks and roles and the employers to dwell on other core tasks.

Increased productivity

When organisations promptly handle grievances, they ensure that the employer maintains their work focus and productivity. Prompt grievance resolution also shows employees that the organisation takes their concerns seriously and values them (Consult HR, 2018). As a result, their motivation and engagement levels rise, leading to increased productivity. This can see them receive rewards, and the entity earns more profits.

Enhanced employee relations

Effective grievance handling is critical in assisting with the maintenance of healthy working associations between employees and employers. When organisations handle grievances fairly and timely, they show the employees that they respect their issues and take them seriously (Consult HR, 2018). This is vital in building trust between employees and employers. As a result, employee loyalty and engagement increase.

Consequences of not handling grievances effectively

Organisations’ failure to handle grievances effectively could result in expensive legal action being taken against the entity. This could encompass claims of constructive r unfair dismissal and discrimination, which could be highly expensive to defend. Additionally, ineffectively handled grievances could decrease employee morale, which could negatively affect productivity and performance. This could result in a general reduction in customer satisfaction and quality, adversely affecting the entity’s bottom line. Besides, I t could destroy the entity’s reputation, resulting in a decline in customer loyalty and trust (Consult HR, 2018). Hence, organisations need to implement effective ways of addressing their employees’ grievances while complying with the law to guard their financial well-being and reputation.

Reference

Consult HR. 2018. 10 Tips for effectively managing discipline and grievances in the workplace Retrieved 2, February, 2023 from https://www.consulthr.co.uk/10-top- tips-effectively-managing-discipline-grievances-workplace/nnbb