The CIPD has published a report on managing conflict at work.

Statutory dispute resolution procedures have made managing conflict at work more complex and failed to reduce the burden on the employment tribunal system, it said.

Stakeholder Response: CIPD

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Ben Willmott, CIPD employee relations adviser and author of the report, said: "The statutory dispute resolution procedures have led to a formalisation in how conflict is managed because employers are afraid of falling foul of the law.

"But an early intervention and informal resolution by managers is usually much more effective.

"The Department for Trade and Industry should consider going back to the drawing board when they review the statutory procedures later this year.

"They have failed to reduce the burden on the employment tribunal system, adding to the complexity of tribunal hearings, as well as creating additional problems for employers by making managing conflict at work more bureaucratic.

"Employers must provide the relevant training for line manager and invest in mediation if they are serious about reducing the damage caused by conflict at work in terms of wasted management time and the high costs associated with tribunal claims.

"Workplace disputes also generate very significant hidden costs through their negative impact on employee morale and motivation, absence levels, staff retention and employer brand.

"While most organisations train managers to use disciplinary and grievance procedures too many are failing to recognise the value of mediation and training in dealing with conflict more generally."

Stakeholder Response: FSB

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The FSB said: "The issue of dispute resolution and the problems this can cause small businesses is one that the FSB has lobbied on for some time. 

"In our 2006 Employment Survey, a quarter of all those we surveyed chose dismissal and grievance procedures as the legislation they felt to be most burdensome.
 
"However, the FSB has welcomed the recent Employment Dispute Resolution Review by Michael Gibbons and have, to date, taken an active part on the panel who are being consulted. 

"The FSB are of the opinion that the DTI has recognised that the current dispute resolutions are too complex, burdensome and costly and will remain active on the consultation to push for a simpler, less costly and less 'procedures-dominated' dispute resolution system."