Employee Grievance: How Can Companies Manage it?

Have you ever reviewed your earlier employer on company reviewing platforms? Where you can rate them on a 1 to 10 scale, and your comments play a significant role in directing decisions.

But why do employees fill out these forms or rate their earlier companies, be it for either good or bad?

Because either way, they are satisfied or unsatisfied, which triggers their review mode. But, then, wouldn’t it be better if companies could take their employee’s feedback and grievances so that they can make these aligned that works best for both parties?

Resolving employee complaints and grievances is a vital aspect of managing your team effectively. Workplace grievances can be sensitive and serious issues, potentially leading to legal or financial consequences if not addressed properly.

Let, understand first what is a Grievance?

Every workplace has its own distinct culture and guidelines. But what happens when those rules are broken, or employees feel mistreated? That’s where grievances come in.

A grievance is essentially a formal complaint filed by an employee or group of employees when they feel negatively impacted by violations of workplace policies or contract agreements. Think of it as a way for employees to speak up when they believe something’s not right.

But, then, who should be part of the process? Managers, team leaders, HR personnel, and employees. This process must include both group and one-on-one interaction that clears out the sky, giving a cleaner picture.

There are big enterprises that are already working on this line and ensuring their employees’ well-being isn’t wasted on work. But, then, there are also some medium and small enterprises that are somewhat taking care of this or maybe not.

Employees unhappy with their work environment have the right to file a workplace grievance. Having a clear procedure in place makes the process smoother and more consistent. However, employee grievance rates vary widely across India, depending on factors like industry, company size, and location. Unfortunately, comprehensive national statistics on employee grievances are hard to come by. Yet, surveys and reports suggest that grievances related to workplace harassment, wages, working conditions, and management practices are all too common.

Employers must acknowledge these issues and establish supportive systems to address employee concerns. By doing so, they can foster a healthier, more inclusive work environment.

But, then, why are the employees unsatisfied and raise grievances? Let’s understand one by one.

Causes of Grievance

Workplace grievances occur when employees feel unhappy with their jobs due to issues like mistreatment, conflicts, compensation, health and safety, or changes at work. Essentially, grievances occur when there’s a mismatch between what employees expect from their employment and the reality they experience. Employees naturally expect a safe working environment, accurate job descriptions, fair pay, respect from their employers, and open communication. When these expectations aren’t met, grievances can arise. Employers must recognize these potential areas of discontent and address them proactively to foster a positive and supportive workplace culture. By acknowledging and bridging the gap between expectation and reality, employers can create an environment where employees feel valued, heard, and empowered to excel in their roles.

• Working Condition: Everyone deserves a safe and healthy workspace that supports their well-being.
• Pay and Benefits: Fair compensation and benefits are essential for employees’ financial security.
• Discrimination and Harassments: Respect and inclusivity are non-negotiable; every employee expects for a harassment-free workplace.
• Work-life Balance: A balanced work and life helps employees to thrive; flexible schedules and reasonable workloads matter the most.
• Management and Supervision: Effective leadership and clear communication play a crucial role in an employee’s success metrics.
• Interpersonal Conflicts: Constructive dialogue and respectful relationships make the workplace stronger, giving desired output.

So these are the types of grievances that employees raise their voices for, but now, let’s understand what measures Employers can take to handle all types of grievances.  

Handling Workplace Grievances in 6 Steps

When an employee has a concern, follow these steps to resolve the issue fairly and efficiently.

• Informal Resolution: Address the issue through open dialogue between the employee and their line manager.
• Formal Complaint: If informal resolution fails, the employee submits a written complaint, triggering a formal procedure.
• Grievance Hearing: Meet with the employee to discuss the grievance, ensuring necessary adjustments and accommodations.
• Investigation: Gather facts, interview witnesses, and collect evidence to inform a decision.
• Decision and Action: Communicate the decision in writing, outlining supporting reasons and potential next steps.
• Appeal Process: If necessary, conduct an appeal hearing with a senior manager, ensuring the employee’s right to be accompanied.

Key considerations throughout:

• Fairness and consistency
• Reasonable adjustments and accommodations
• Thorough investigation and evidence-gathering
• Clear communication and documentation
• Respect for employee rights and dignity

So, what is the policy in India that acts as a Whistleblowing Law?

According to the Companies Act, 2013; SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015; and Whistle Blowers Protection Act, 2014 (awaiting amendment):

• Listed companies: Mandatory to have a vigil mechanism (whistleblowing policy) – SEBI regulation.
• Companies accepting public deposits or borrowed ₹50+ crores from banks/financial institutions: Mandatory vigil mechanism – Companies Act, 2013.
• Unlisted private entities: No mandatory whistleblowing policy (awaiting Whistle Blowers Protection Amendment Bill, 2015 enactment).

A well-functioning workplace extends beyond job skills that help in Employee Performance Management. Investing in regular training that focuses on positive interactions and relationship-building can have a transformative impact on entire departments. By doing so, employees become more confident in their roles, leading to increased morale and reduced dissatisfaction. Stronger connections between supervisors and peers also flourish, creating a harmonious work environment.

However, workplace grievances can pose serious risks, potentially leading to costly litigation. To mitigate these risks, business leaders must recognize common types of grievances and establish clear procedures. Educating yourself on potential issues ensures preparedness for addressing serious matters, minimizing risks, and fostering employee satisfaction. By prioritizing your team’s success, you create a positive work environment where everyone thrives.

Workplace grievances can be a challenge to navigate, but creating a safe and supportive environment starts with empowering your employees to speak up. With HRM Mitra’s anonymous grievance reporting feature, your team members can share concerns without fear of retaliation, fostering a culture of transparency and trust.

HRM Mitra’s user-friendly HRMS Software ensures seamless reporting, maintains confidentiality, facilitates prompt investigations, and encourages open communication, ultimately boosting Employee Performance Management. By utilizing this solution, you can create a workplace where everyone feels heard and valued.

Consider giving HRM Mitra a try to promote a positive work environment and increase productivity. Your employees will appreciate the opportunity to voice their concerns confidently.