Costly Grievances
The math isn't complicated. A complaint that escalates to a lawsuit can easily cost $50,000 to $100,000 and take three to five years to settle. And it doesn't stop there. (Taylor, Robin, Workplace tiffs boosting demand for mediators. National Post Mar. 17/03)
"In the case of harassment, the number of employees seeking help almost tripled between 1999 and 2001. Add absenteeism, employee theft, sabotage, not to mention the cost of employee turnover (estimated to be as much as 75% to 150% of base salary) and it is understandable why companies are paying attention."(Taylor, Robin, Workplace tiffs boosting demand for mediators. National Post Mar. 17/03)
“Sexual harassment is associated with more conflict in work teams, less cohesion and less success in meeting financial goals.” (Kleiman, Carol, Harrassment bad for bottom line, study finds. The Ottawa Citizen: Wednesday Sept. 7/05)
But remember, it doesn't have to be this way!
“Corporations that have developed collaborative conflict management systems report significant litigation cost savings: Brown and Root reported and 80% reduction in outside litigation costs, Motorola reported a 75% reduction over a period of six years, NCR reported a 50% reduction and a drop of pending lawsuits from 263 in 1984 to 28 in 1993” (Ford, John, Workplace Conflict: Facts and Figures, [online] Mediate.com website, July 2000)
Conflict Management Services can help your business or organization develop internal conflict management systems, along with workplace mediation and other services that can help lessen the incidence of grievances being filed.
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Consuelo Griego