A study within this council estimated that where an employee grievance followed the appeal process all the way to an Employment Tribunal it cost the company: 32 days in HR management, 10-12 days’ work for the legal department, and over 32 days in line manager input. The overall cost to the employer council is over £500,00.00 in lost productivity; or in other words, over 74 days lost productivity. In addition to the huge loss of productivity, the report found that a typical Employment Tribunal case incurred a cost of £18,000.00.
Loss to Employer = approximately £518,000.00
Alternatively, the same study found that a typical mediation took just 3 days: 1 day of preparatory meetings, 1 day of mediation, and 1 day of follow up meetings. The average cost of a mediation was found to be less than £5000.00.
Loss to Employer = less than £5,000.00