A key ingredient in a thriving business is a workplace environment where your people can excel. A team of skilled individuals all pulling in disparate directions isn’t nearly as effective as a team of skilled individuals all focused on achieving a shared goal. This won’t come as a great revelation to most employers and managers, but building and maintaining an environment that fosters healthy, productive relations between team members isn’t always that easy. People have different ways of working and communicating. Our motivations and abilities may vary, and many factors can affect our mood and performance.
This means that every business needs to think about how its team members interact and take an active, structured approach to shaping and guiding relationships, from individual connections to the company-wide culture. Left untended, the social dynamics of your workplace can get bogged down and instead of having positive, motivated employees who can constructively express opinions and resolve problems, your team will be wasting valuable time on unnecessary battles and disputes.
This white paper looks into the many facets of employment relations, from ways to build and maintain healthy employee relationships, to managing issues and resolving conflicts and complaints (people aren’t perfect, after all). We’ll also look at the counselling and disciplinary process, and how to deal with problematic employee issues. There’s a lot to cover, so let’s dive in.
Business is all about relationships. We stress this a lot. Like any relationship, relations within the business – whether between coworkers at the same level, or employees and their manager or employer – require attention and effort.
Establishing a framework and social support system can help people work more harmoniously together. How extensive and formalised these efforts are will depend on the nature of the business, its size and goals etc., but they work best as a cohesive set of initiatives aimed at creating an environment where people feel supported and empowered to do their best, both individually and as a team. Part of the foundation-laying from a company perspective is thinking about what good employee relationships look like and defining how you plan to manage and guide them.
You’ll also want to factor in how to measure the effectiveness of your efforts, so you can see what works, what doesn’t, and how to improve. The bedrock is individual relationships and the individuals within them. Everyone performs a valuable role within the business, and if all your team members feel understood and supported, the business can expect more enthusiastic, confident employees that get along with other people better and treat them better, be they coworkers or customers.
Good communication is fundamental. It helps build connection and understanding, linking people together. If the company fosters an open, inclusive environment where people feel free to raise issues and give and receive feedback, then staff should generally get on and work well together. You will have fewer issues and be much better placed to quickly resolve any that arise. At an operational level, everyone in the organisation should clearly understand the company’s policies and objectives, and know how their individual efforts contribute to its success. At a less formal level, opportunities for people to spend time together doing things other than working can help strengthen the bonds among team members and create a more congenial atmosphere. That’s not to assume that everyone is a natural at prompting and managing healthy relationships; you may have to look at training and support.
Giving people opportunities to learn and improve their communication and interpersonal skills not only imparts useful know-how, it’s a clear indication that the business takes employee relations seriously. As always, management needs to take the lead, because there’s no point expecting your team to act in ways that the business’s leaders don’t embody themselves. A healthy organisation-wide culture of teamwork, fairness, and mutual respect starts at the top.
The baseline for healthy workplace relationships starts with individual relationships. We say this a lot: every employee is an individual and wants to be recognised and treated as such. In a busy workplace, it can be hard to fully get to know each person, so the best way to find out what inspires and motivates an employee, and what they need and expect from the business, is by talking to them directly (these things can vary quite a lot depending on the person’s age, their situation and aspirations, the type of job they do etc.). Take the time for regular one-on-one conversations, whether they are brief, informal catch-ups or more formal performance evaluation meetings.
Frequency is key to building rapport and trust. Additional quick surveys and polls can provide more detail. Once you clearly understand employee needs, the business must do its best to meet them. Things like decent pay and benefits, good working conditions (including flexible work arrangements), responsibility and recognition, personal development, and equitable advancement opportunities will go a long way to making them feel valued and respected. In return, the business can expect more enthusiastic, confident employees that get along with other people better and treat them better, whether they are coworkers or customers. They will also be more willing to pitch in, to look for solutions to problems, and be loyal to the company.
If every employee feels understood and supported, you’ve got the ingredients for a healthy organisation-wide culture of mutual respect and teamwork. Look at ways to strengthen the bond among team members and create a healthy, genial workplace atmosphere. Team-building exercises and events can help co-workers get to know each other and be more effective at working together. You don’t have to take everyone for regular pub lunches or paintball sessions, but getting people together to have some fun away from work is a good idea.
More formally, everyone in the organisation should clearly understand the company’s policies, goals, and mission. This not only determines the way employees should act, it helps create a uniform vision and encourages employees to work towards common objectives. Obviously, the more team members are able to provide input into the culture and vision, the more invested they will be helping build them. Encourage employees to share ideas and work on ways to engage staff in conversation at a group level. Systems and infrastructure that capture suggestions and prompt ideas will make it much easier to deliver on them.
Don’t overlook your ways of working; they should be defined by personal and team values, along with wider goals and responsibilities. Stay open to new ideas and don’t be afraid to change processes or methods that aren’t working. Empower the people actually doing the work to resolve problems as they are the ones who are best placed to see solutions. Just remember, a company’s culture exists whether it is consciously built or not. Don’t leave it to chance. A dynamic work culture based on respect, cooperation, and resourcefulness will help build long-term success and sustainability.
Open, honest communication is critical to establishing and maintaining strong employee relationships. Communication builds connection and understanding, linking people together. Open communication involves everyone in the business. It starts with management communicating regularly and honestly with employees about the issues that impact their work, whether they are personal or businesswide matters. Listening is as important as talking. Having an open-door policy sets an example of good faith and receptiveness, and staff should be able to raise concerns and questions, and feel they will be taken seriously.
Employees should also be encouraged to discuss work issues at a team level, and be supported to resolve problems or any misunderstandings. Using a number of different channels, both personal and formal – e.g. team meetings, one-on-one talks, employee newsletters or company intranet site etc. – gives people more opportunities to express themselves. Some people may be more comfortable communicating in writing rather than verbally. Ensure there is zero toleration of abusive or threatening speech and behaviour. No one functions well in an environment where they feel intimidated. Respect and understanding are vital.
Inevitably, there are going to be times when people clash or disagree, so managing and resolving interpersonal problems is a big part of creating a healthy workplace culture. There are legal responsibilities to uphold when dealing with conflict, and adhering to the law will minimise any potential disruption to the business and lessen stress. Processes for raising, investigating, and resolving conflict should also be part of company policy and everyone in the business should know what steps to follow if there is an issue. All team members have a duty to take problems seriously and follow fair process.
Work health and safety (WHS), discrimination, bullying, and harassment must be investigated and the employer must support the affected person. Unacceptable conduct, behaviour or poor work performance must be investigated fairly and any counselling or disciplinary process must be fair and reasonable. Everyone should be proactive. Identifying and addressing things early is always better than letting them smoulder and grow. A workplace culture where everyone shares responsibility for preventing and resolving misunderstandings or mistakes will help reduce problems in the long-run and build stronger relationships.
Effective employee relationship management requires ongoing attention and tracking. Ideally, this starts at the beginning of the employment journey so anyone joining the business is clear about what is expected of them and what they expect in return. Setting some ground rules will make your relationship a lot stronger and easier to manage. Part of the foundation-laying from a company perspective is defining what employee relationship management means, what you expect to achieve and how. From there you can work on the best ways to gauge the effectiveness of your efforts. Aside from productivity and staff output, some broad measures might be things like rates of employee engagement and turnover, how easy it is to attract new people, how often relationship issues are raised or disciplinary procedures required, and their results.
Monitoring will probably entail a mix of formal assessments, like staff meetings and surveys, and more informal observation from managers and employees. Share the results with employees and check that any feedback is understood. Again, the culture should be one of trust, transparency, and willingness to learn. If there is evidence of discontent, subpar communication, or poor employee interactions, work collectively to find ways to improve.
Of course, building and managing relationships doesn’t always come naturally to everyone, so people may need support and training. Managers and executives may benefit from leadership training that focuses on establishing and nurturing employee relations, motivating staff, and how to respond to any issues. Employees may need coaching to develop effective communication skills (basic literacy and numeracy training may also be beneficial in some workplaces). As well as imparting useful skills, giving people opportunities to learn and improve is a clear indication that the business takes employee relations seriously.
Ultimately, you can have all the plans and process you like, but it will be largely meaningless if managers and senior leaders don’t embody the values. Communication is done by action just as much as words. Having effective leaders that are approachable and supportive, who communicate clearly and deal with issues effectively and compassionately will build respect and trust, and set an example that staff will want to emulate.
Talking about strong relationships and open communication can sound a bit feel good. There are always going to be times when people clash or disagree, so effectively managing and resolving issues is a big part of any healthy workplace culture. The trick is focussing on maintaining a productive day-to-day relationship and providing opportunities for discussing and resolving any problems before they become major. The workplace environment should be supportive and respectful, so people can feel comfortable raising issues and working through disagreement. Some people (including managers) will need more encouragement and support than others. You also need to strike a balance between team members sharing their opinions and suggestions and not having constant debate and disruptions. Thankfully, many disagreements and disputes are minor and get resolved before they turn into full-blown disputes and without management having to step in.
Larger, more persistent problems or severely strained workplace relationships may require investigation of the circumstances and counselling of the employees. The more formal review of the circumstances puts the employees on notice that disruptive conduct is not acceptable and often leads to an adjustment in behaviour, ideally resulting in employees finding solutions they can live with. Concerns about an individual’s behaviour or performance need to be addressed sooner rather than later. Some bosses are okay with letting the small stuff slide, but allowing even low-level poor conduct or attitude can have an incredibly damaging effect, not only on the person’s performance but on others around them.
Fortunately, issues are easier to spot and broach when employment relations and lines of communication are healthy. You’re less likely to be blindsided by major issues and will be better placed to work together on resolving small problems without having to use formal processes. Illustrating the effect a person is having on the team – whether that is being disruptive or letting other members down – can be a powerful tool for raising awareness of the problem and to motivate the person to change. Always be aware of your legal responsibilities in dealing with employment relationship problems. Make sure when dealing with such issues you are consistent in your approach and you follow your established procedures uniformly with each employee. In this way, every team member knows the process for raising, investigating, and resolving conflict is reasonable and consistent. Treat people fairly and with as much compassion as possible, and follow proper process.
Unhealthy forms of conflict such as abusive behaviour, repeated mistreatment, bullying, harassment, or discrimination should never be tolerated and need to be dealt with using formal procedures. Sharing the responsibility for taking problems seriously and tackling them while following fair process will minimise any potential disruptions, lessen stress, and help keep the business safe from bullying, harassment, victimisation, vilification or discrimination claims (we’ll look at this more closely later).
Of course, there are times when an employee’s performance is so poor they need formal performance-management to get them back on track. Or when things like misconduct, fighting, bullying, harassment, or impairment due to drink or drugs leave you with no option but to take disciplinary action. More often though, an issue will be relatively minor or creep in over time; things that need to change but aren’t serious enough to warrant starting formal disciplinary procedure. If you don’t address an issue, it can have a significant impact on your staff retention, morale and performance of the overall team.
You may want to let the small stuff slide and then if things get better you breathe a sigh of relief, or if they continue to deteriorate, you launch a formal follow up and personal counselling or disciplinary action. But allowing negative conduct or attitude, even if it is low-level or passive-aggressive, can have an incredibly damaging effect on the whole business. It’s not just about the person who is behaving badly; it’s the effect they can have on all the people around them. Given the laws, dealing with unfair dismissal it is essential you have a process to deal with poor conduct, behaviour or work performance which intervenes early to advise employees of problems and provides an opportunity to correct conduct, behaviour or work performance. If you do nothing about it, it can impact your staff morale, employee retention, and the performance of the overall team, which is critical to the success of your business. You could also spend a lot of time and resources in formal disciplinary proceedings; effort that could be better spent on more rewarding endeavours.
Essentially, issues management is about behaviour change. A team member is doing something or behaving in a way that’s not aligned to what the business needs or what is expected or acceptable, and you want to change that. Remember, shifting behaviour can be tough. People can be resistant to change. The trick is being aware of that and working around it. Keep in mind that we, as human beings:
Don’t always make decisions based on logic (although we like to think so).
Like to be part of a group and avoid being isolated.
Want to feel in control.
Respond better to encouragement and incentives than negative feedback.
The best way to manage workplace issues and effect change is through communication. It all comes back to the fundamental principle that we emphasise: the employment relationship is first and foremost a human relationship. Once the requisite legal foundations of employment are in place, the substance of daily workplace relations is about interaction between people. If you have a solid relationship with your employees that is based on regular communication and mutual understanding and trust, you will have fewer issues and be much better placed to quickly resolve any that do arise. You don’t want or need to be best friends with your staff (that would complicate the relationship), but you should be able to connect with them on a personal level and to develop an understanding of what makes them tick.
A good rule to follow when resolving an issue is to treat others as they wish to be treated. This is more considerate and compelling than treating someone in the way you’d like to be treated yourself, because we’re all different. Be clear about the problem but aim to tailor your communication style to the person, so you connect with them and drive positive behaviour change. For example, if a person is very task focussed, communicating your expectations in a prescriptive, task-oriented way will yield better results than appealing to emotions. A creative, people-focussed person will respond better to you engaging them on a social and personal level, perhaps by asking them to reflect on the effect of their behaviour on others and ways they could improve. Incentives can be useful, but they don’t have to be money or a bonus (bonuses can have a negative effect on behaviour if people don’t get what they feel they deserve or are entitled to). Find things that people care about and are motivated by. It might be career progression, or recognition by the business or their colleagues.
Remember, personalities can be complex and people can be irrational, because of egos, emotions, fears, and desires. People generally value being a trusted member of a team so illustrating the effect an employee’s behaviour is having on the group – whether that is being disruptive or letting other team members down – can help make them aware of the problem and motivate them to change. The employment relationship first and foremost is a human relationship. Try to give the person a sense of control and choice. Involve them in the change process by asking for their thoughts on solutions or what assistance they may need to improve. How much we like the person talking to us will also influence how much we will listen. If your relationship with the employees is solid and they feel supported, there is a much better chance they will take what you say on board.
Appealing to company values and promoting expected standards won’t mean much if the directors and managers don’t behave in a way that reflects what you want to see from your people. Your team members will mimic actions much more than they will follow words. They will also resent being performance-managed or disciplined for behaving in the same way they have seen more senior people behave.
If you do these things and still need to take disciplinary action, it will make that process easier and more legally robust, because you can prove that you have made many attempts to manage and resolve the issue (make sure you keep a written record of communication and any relevant evidence). Your employee is also less likely to feel unfairly blindsided by any issues or accusations they may have been unaware of and had no chance to remedy.
Unfortunately, research indicates that Australian companies aren’t that good at effectively resolving workplace conflict. Many Australian employees find themselves in disagreements or arguments that are serious enough to compromise their ability to do their job. Common effects range from stress and anxiety to anger, followed by a loss of focus on work, reduced confidence and motivation, avoiding communication, and taking time off or leaving the job by either choice or dismissal. The longer any conflict goes on, the greater the impact on employees’ performance - both of those directly affected and of others around them. Having even a few of your team members upset, distracted, or avoiding work is obviously bad for business, so it makes clear sense to support and equip staff with the skills to understand conflict and handle it well.
The focus should be on helping people understand their own behaviour, motivations and reactions, and how these impact others. Another vital component is learning to remove the heat from disputes, by not making them personal or combative, and trying to stay constructive. Where you are managing conflict, make it about the issue or problem, and not about the person - it’s much easier to stay focussed and professional when you don’t feel like you are being attacked or identified as the problem itself!
Aside from helping meet health and safety obligations to workers, the practice of working positively through conflict is good at bringing the best out in people. It also can be a constructive, energising process that helps the business examine and evaluate ideas, options, and practices. If people are worried about the negative consequences of conflict or are distracted or disenchanted by it, the company could well be missing out on valuable insight and feedback.
Research has shown that most people, be they managers or employees, avoid conflict and then, when it arises, respond by disengaging. It’s an understandable reaction, and may be useful if the issue is trivial and will probably resolve itself on its own, but in most cases it’s the opposite of what the business needs. Another common response to conflict is retaliation, which often creates a cycle of blaming and rationalising that people can get locked into. But conflict can be accepted as a natural part of human relations.
It can be an energising force that sparks healthy debate and thorough evaluation of options, opinions, practices, and processes. It can stimulate innovation, engagement, and trust. Businesses need fresh ideas and to be open to better ways of doing things. If people are worried about the negative consequences of conflict or are distracted or unmotivated because of it, the company could well be missing out on valuable ideas and viewpoints. So instead of trying to shut down situations and conversations that may produce conflict, look to harness the power of healthy, constructive conflict.
Like we’ve said in many of our posts on successfully managing employment relations issues, identifying and tackling things early is key. The business should plan for conflict and be able to respond positively to issues as they arise. We need to be clear here, that we’re not talking about unhealthy forms of conflict: abusive behaviour, bullying, harassment or discrimination, cruel or dangerous attacks, repeated mistreatment etc. This type of conduct needs to be dealt with rigorously and formally, and may necessitate disciplinary action or even dismissal. The bulk of workplace conflicts can be dealt with constructively and healthily by recognising and resolving disagreements before they turn into full-blown disputes.
Open, respectful communication is vital. People should be able to discuss and iron out areas of disagreement as soon as possible. All parties’ intentions and opinions should be asked for, listened to, and considered. Set aside notions of winners and losers. Focus on the problem rather than the people. Friction could be arising from underlying issues that haven’t been properly addressed. Do people feel their contribution is valued? Is there an unfair imbalance of power in the team? There may be stresses and issues outside work that are also a factor.
Seek to identify the root cause(s) of conflict and find a solution that everyone can work with. It doesn’t mean that a formal, systemic response needs to be triggered every time there’s conflict at work. The earlier you can identify issues, the easier it will be to get to the crux and the less formal discussion and resolution can be. Solutions also have a much higher chance of success if everyone involved has had input into creating them.
Planning for conflict means training for it. The international study by CCP found that over 95% of people who received conflict management training said it helped them. Over a quarter (27%) said it made them more comfortable and confident in managing disputes and 58% said they now looked for win–win outcomes from conflict. Training often focuses on helping people understand their own behaviour, motivations and reactions, and how these things impact others. It also involves removing the heat from disputes, by not making them personal or combative and instead being constructive. Discussions aren’t then “I don’t like you” or “I don’t like your idea”, but rather “I don’t think your idea will work because of… and I think this approach would be better…”. Employees who have learnt basic conflict management skills are not only more likely to positively resolve conflict on their own, they also experience less conflict overall.
Look to include conflict-management training as part of your onboarding process. Make sure there are up-to-date tools and resources available to all employees and keep the learning ongoing. It’s about building a resilient team culture that accepts conflict, is comfortable raising differing views and concerns, and looks to get the best outcomes.
Conflict can be quite emotional so it’s best handled with compassion, especially if management gets involved. It goes without saying that people want to be treated with respect; to be seen as people rather than just employees (or worse, objects). Resolution is most effective when every person has helped find a harmonious way for their different approaches and ideas to work together. Compromise can be a lot easier if no one feels like they have lost or won. The practice of working positively through disagreements and problems is often really good at bringing the best out in people.
There will be times when conflict between co-workers leads to a complaint to a manager or boss. While we don’t think businesses necessarily need a formal policy for dealing with employee complaints, we do recognise the need to approach them with sincerity and tact. Bad behaviour is a liability to the company, legally and commercially, so always look into complaints and treat them seriously. You need to be able to work out whether a complaint is justified, how serious it is, and whether it warrants further action. Many complaints stem from minor incidents, flash arguments, or perceived wrongdoings, and can be resolved quite easily and informally. If it’s a personality clash, encourage people to step up and figure out how to get on with each other. If a relationship is severely strained, counselling can help people air their issues and find solutions they can live with.
If it is a genuine case of bullying, harassment, or discrimination, you need to launch a formal investigation straight away and ensure that the person who has complained is safe and supported to do their job. Other complaints may be clear cases of misconduct that will require disciplinary action (more on this one in a bit). Ignoring a complaint or not acting appropriately could mean it becomes a larger problem that is harder to resolve and more damaging to staff and the business as a whole. It could also lead to legal repercussions. It’s far better to deal with issues with a minimum of exacerbation and distress, supporting your team members, and building a mature, resilient work environment.
When an employee comes forward with a complaint about another employee, no matter how crazy it seems, you should take it seriously (within reason, of course: a complaint that a co-worker is a shapeshifting lizard probably doesn’t require further consideration, other than checking whether the complainant is okay). There are two priorities here:
Working out whether the complaint is justified and warrants further action or not.
Supporting the complainant emotionally so they feel heard and that you take their concerns seriously
Talk to the person and ask them to explain fully. Complaints often result from minor incidents, flash arguments, or perceived wrong-doings, and can be resolved easily without formal procedure. If it’s a complaint about another person’s performance, it may be easy to prove or disprove by checking evidence (timesheets, logbooks, deadlines and progress schedules etc.). Whatever you do, don’t ignore a complaint and hope it goes away. Under employment law, employers are responsible for creating a safe and secure working environment and to take steps to ensure employees aren’t subjected to bullying, harassment, or discrimination at work. Disregarding a complaint or not acting appropriately could mean it becomes a larger problem, which will not only make it harder to resolve but could also mean it comes back to bite you (at worst you could face a claim or prosecution under the relevant State or Federal Work Health and Safety Act).
The purpose of initial investigations is to see how valid and serious the complaint is. You need to be clear on whether it’s a case of two people who don’t get along or a genuine case of unacceptable conduct, bullying, harassment, or discrimination, because this will dictate where the process goes next. If it’s a personality clash, encourage the employees to step up, be mature, and figure out how to get on with each other. Everyone doesn’t need to hug and be friends, but they do need to maintain a professional, working relationship.
Resist intervening unless it’s absolutely necessary, as it can make the situation worse if the other party resents official intervention. It may also mean employees rely on you to play the role of parent or referee more often in the future. Bullying, harassment, victimisation, vilification and discrimination are another story and complaints should be formally investigated straight away. You must also support the complainant throughout the process. Other complaints may be clear cases of unacceptable conduct or serious misconduct, such as violence or alcohol or drug use, at which point you would begin the disciplinary process.
Sometimes, you might want to disregard a complaint because of personal feelings. You (or others in the team) may find the complainant irritating or you might like and respect the person being complained about. Don’t take sides, rush to judgment, or act purely on gut feelings. You need to look into things as dispassionately as possible; they may not be as they seem.
Human relations can be complex, so you may need to dig deeper, talk to more people, seek witnesses etc. Like all employment processes, any investigation should be conducted fairly and reasonably. Keep in mind how the business has handled similar issues or problems in the past, so you can be sure your response is consistent. Is there a workplace code or policy that has been breached? Are there extenuating circumstances that you need to take into account? The person may be having problems outside work. Remember, you’re not conducting a criminal trial here. The claim doesn’t have to be proved beyond reasonable doubt, but rather that the alleged behaviour or conduct is more likely to have happened than not (the “balance of probabilities”).
Sometimes, getting the complainant to put their complaint in writing can help clarify the issue. It may be the act of writing it down makes them see the complaint in a different, less severe light and they aren’t interested in pursuing it. Perhaps focusing on the details of what happened will illuminate its severity (both for them and you). A written statement may also highlight questions which still need to be answered. Just be aware that writing down a complaint can lead the complainant to assume it will be formally investigated and resolved, which may not be the case. Always be clear about the process and what people should expect from it.
The Fair Work Act 2009 requires all Awards and Enterprise Agreements to contain a dispute resolution clause. It is important that where an employee is covered by an Award or Enterprise Agreement that the procedures are followed as a minimum. More information can be found at the Fair Work Ombudsman site https://www.fairwork. gov.au/how-we-will-help/templates-andguides/best-practice-guides/effectivedispute-resolution
Counselling can be an effective tool to help resolve disputes, particularly between co-workers. As mentioned before, it’s better to encourage people to take responsibility for resolving their own disputes whenever possible, as this helps build a mature, resilient work environment. If the relationship is severely strained, however, third-party assistance can help the parties resolve the issue. This doesn’t always mean getting everyone together in a room to thrash it out; sometimes it might be appropriate to give the complainant coaching and advice on dealing with the other person. If you do counsel your employees, work to find solutions they can live with. Remember, the ongoing working relationship should be of topmost importance.
Sometimes people will come forward with a complaint but insist that it goes no further. This isn’t much use to anyone, because no action can be taken and the complaint is therefore little more than a gripe or gossip. It’s also not uncommon for complainants (and witnesses) to request anonymity. Tread carefully here. It’s very hard to investigate a complaint properly without other team members becoming aware. Giving an accused employee the right of response is also an important principle of natural justice, and disciplinary action taken on the back of anonymous complaints can be hard to defend if contested in court. Draw some boundaries around what you and the business are prepared to do and not do in these cases, and hear and not hear.
Where a complaint relates to unacceptable work conduct involving bullying, harassment, victimisation, vilification, work health and safety, discrimination or other misconduct, to ensure you are meeting your obligations to provide a safe work place, you have no option but to investigate the matter. Any failure to do so will result in the employer not having met their obligations to provide a safe work place for employees.
On the other hand, be mindful that minor incidents can seem huge for employees and serious issues are often traumatic. While the business is legally bound to support the complainant in cases of bullying, harassment, or discrimination, any complaint procedure should always seek to resolve issues with a minimum of exacerbation and distress. Whatever you do, don’t go discussing a complaint with others, especially by text, email, or on social media.
Serial complainers can suck up a lot of time and space. If you find a person’s complaints are taking up too much of your time, then you can take action against them. Complaining is not a legitimate way to avoid being managed or disciplined. In rare and unusual cases, you may be justified in dismissing an employee on the grounds of an irreconcilable breakdown in the employment relationship. It’s very much a last resort: the business will have to prove that the employee was largely responsible for the breakdown, the relationship was beyond repair, and the dismissal procedure was fair. Usually, severely incompatible people will quit because they can’t take the pressure, scrutiny, or stress.
We steer away from prescribing procedures for managing people where we can. Having a blanket policy about employee complaints could reduce your flexibility, as you will be required to faithfully adhere to it even if the circumstances of the complaint call for a different response. The guiding principles for handling complaints are being fair and reasonable, and making sure that the person you’re working with feels heard and that there’s a way forward. We do recommend having a bullying and harassment policy, however. These are serious issues and should be treated as such by everyone in the company.
A culture of responsiveness and sensitivity to employee needs should underpin your whole approach to handling complaints. If the company fosters an open, inclusive, caring environment, then people should generally get on and work well together. Leaders need to set an example, demonstrating what behaviour is appropriate and how other people should be treated. If you’re happy to let little things go (an inappropriate comment here or an unwanted touch there), don’t be surprised when this becomes the norm and you have to battle to change it. Remember, bad behaviour is a liability to the company, legally and commercially. But don’t be afraid of differing opinions or constructive conflict. Employees should feel free to raise concerns and propose solutions, so long as everyone respects each other’s opinions and seeks mutually beneficial outcomes.
You have had an employee raise a complaint with you about a colleague at work. The following process will help you navigate the complaint, investigation, and resolution process. This process map outlines the steps in a basic format.
Ensure that you have all the details of the complaint
This includes details of incident/s, witnesses, dates, times, and (ideally) what outcome the employee would like.
Make sure employee is emotionally supported
Take steps to ensure they are feeling safe at work (working from home, separated from other employee, regular catch ups with manager, different duties, reduced hours, EAP).
Review complaint and decide whether further investigation is necessary
Does it warrant investigation? Is it low-level enough to be pushed back to the employees involved?
4A Encourage the employee to resolve it themselves or agree on outcomes together
4B. Conduct additional investigation (with employee’s permission)
Agree on next steps with the employee
Arrange counselling between parties
This could be internal (a manager, distant superior, or business owner).
Agree on outcomes/next steps
Regularly check in with both employees and adjust plan as necessary
9A Behaviour improves, issue resolved - A positive result.
9B Behaviour doesn’t improve - If one party is clearly at fault, you may want to consider instigating a performance improvement plan (PIP) or a disciplinary process
Complaints may reveal an employee who is consistently disruptive or troublesome. While good recruitment and onboarding processes and a healthy company culture should help build a cohesive, cooperative team, there’s always a chance you’ll wind up with an employee who doesn’t fit or doesn’t want to. We’ve already discussed the harm problematic employee behaviour can cause, and again the best way to turn the situation around is by addressing it (or them, in this case). Start by gaining the clearest possible understanding of what’s going on. There may be issues outside work that are creating stress. It may be a personality clash or a poor alignment of their skills with their duties. Once you have looked into it and have a decent handle on the problem, meet with the person to raise your concerns and explore solutions.
Create a professional yet open environment where they feel comfortable enough discussing what’s going on. Be specific about how their behaviour is affecting others and having a negative influence on the business. Give the person ample chance to respond. Ask them for their viewpoint and how they think things could improve, then come up with a plan to replace the disruptive behaviour with more positive action. Make sure you let them know what the consequences will be if they don’t shape up, e.g. putting them on a performance improvement plan or starting on the counselling and disciplinary procedure. Decide on a timeframe and give the employee plenty of opportunity to improve. They will need your support, so schedule in regular meetings and catch-ups to keep track of progress and give feedback With the right guidance, most employees will recognise the negative behaviour and try to turn it around. If the undesirable behaviour continues, you will need to move onto more formal disciplinary action.
You’ve heard this before, but we can’t stress it enough. Address the matter sooner rather than later. Dealing with a difficult employee situation is uncomfortable, but it shouldn’t be avoided. The problematic conduct is unlikely to magically disappear and, if left unaddressed, it could mean one employee has a toxic impact on your team’s wellbeing, morale, and performance.
You may find out about an employee being disruptive or troublesome from another employee who complains, or you may experience it yourself. To give yourself the best chance of turning the situation around, try to gain the clearest possible understanding of what’s going on. Don’t just go blazing in; do some background research. Is there any evidence of underlying issues that could be causing the person to behave the way they are? Do they have problems outside work? Is it a personality clash? Are expectations clear? Have they had sufficient support and training? Keep an open mind, stay objective, and challenge your own assumptions. As with all steps in the process, write any findings down so you have a record and can share the information with the person.
Request a meeting with your employee to discuss the issues. Again, do this in writing so you have a record. It doesn’t have to be a formal letter with the company header; an email, text or instant message will work just as well. Giving tough feedback is one of the most uncomfortable things a manager has to do - especially if the person is talented but unruly - and it needs to be done in the best possible way. Create a professional yet open environment where the employee feels comfortable enough to discuss what’s going on. Rather than firing off accusations or blunt criticism (likely to create conflict or make the person defensive), show that you care about their wellbeing but that you’re also there to ensure the workplace is respectful and productive.
Be specific about how their behaviour is affecting others and having a negative influence on the business. People aren’t always fully aware of the effect they are having. Give the employee ample chance to respond. Ask them for insight into the issue and how they think the situation and their conduct could improve. They may have suggestions on better ways of working or raise legitimate issues about conditions, training, or their workmates. A difficult employee may start acting quite differently once she or he feels heard.
Work together on a plan to minimise the disruptive behaviour and replace it with more positive action. Tailor your approach to the needs of the employee and the best way for them to work successfully as part of the team. You might need to change things up. If appropriate (and possible), it may help to move the employee to a different team or business unit. If the person needs a hand to sort out their personal life, provide them with any assistance and resources the business may have, such as an employee assistance program, or seek outside help. The lengths you go to will depend on your resources as a business. If you’re a small employer, you don’t necessarily have to pay for 10 counselling sessions; there are usually small things you can do to help them feel supported and on track at work. Any suggestions for improvement should be constructive, clearly defined, and measurable (in writing).
Make sure you let them know what the consequences will be if they don’t improve, e.g. you may put them on a performance improvement plan (PIP) or start a counselling or disciplinary process. Decide on a timeframe and give the employee plenty of opportunity to demonstrate they can improve. Be realistic about the speed of change. Schedule in regular, effective review meetings (along with less formal catch-ups) to support the person, keep track of their progress, and give them specific feedback.
With the right support, most employees will recognise the negative behaviour and will try to turn it around. If the undesirable behaviour continues, you will need to move onto more formal disciplinary action. This might result in a formal written warning being issued. If this is a possibility, make sure it’s clear at the outset, so the person knows that if they repeat the behaviour or their performance doesn’t improve, then their job is at risk. If you follow fair and reasonable process when dealing with your concerns, you will be on firm ground if the person doesn’t change (or attempt to), and you exhaust other options and have to consider whether to terminate their employment.
The disciplinary process is a tool for working through issues with employees and finding a constructive way forward. The process itself is clearly laid out in employment law and must be fair and reasonable at all times. It’s not about punishing the person and consultation is absolutely essential. No decisions are final until the employee has had a chance to put forward their side of the story and you have factored that into your decision. Taking shortcuts or disregarding proper process will put you at risk of personal grievance action and any potential payouts or penalties, so make sure you follow all the steps. Establish solid grounds for taking action before you start. Look into the matter fully, talk to witnesses (if appropriate), and check the employment agreement and any relevant company policies. The process then centres around 3 key meetings with the employee:
Notification – you formally present your concerns to the employee. The employee doesn’t have to respond then and there.
Employee response – the employee gets a chance to explain and give feedback.
Outcome meeting – you present your decision.
Before the response meeting, you should give the employee time to seek advice and prepare their response. They can choose not to respond, but you must give them the opportunity. You must also take time to consider their feedback before you make and present your decision. The length of the adjournment will depend on the amount of information you need to factor in, but we suggest taking at least one working day (and possibly more) to review and consider everything before making your final decision. You may need to ask further questions or hold another meeting to clarify some points. The outcome may mean you proceed with a formal warning, or the employee may have proved it was not their fault or there were extenuating factors.
Set out your decision in a letter so it clear what information was presented, how you reached the outcome, how long any disciplinary action is valid for, and what the next steps are for supporting the employee’s improvement, such as changes to their duties or further training. Hopefully, the disciplinary process works and the employee’s behaviour or performance improves. You should do all you can to support this and do what you say you will. If the employee continues to underperform or behave badly, you can hold them closely to account through consecutive disciplinary processes (known as performance management). After two written warnings, you can look at dismissal for misconduct (behaving inappropriately in relation to work), or continued poor performance (doing their job poorly).
Remember, if you don’t follow correct process, any warning or dismissal may be deemed unfair by the Fair Work Commission and therefore be invalid. You might be up for compensation payments or the employee being reinstated to their position.
Review and consider follow-up
Review any verbal and/or written complaint related to conduct.
Gather more information. Be discrete, considered and maintain confidentiality.
Determine if further formal review is required.
Meet and written follow-up
If you have concerns, follow up with the employee.
Meet informally with the employee.
Decide if you will follow up formally.
Advise verbally or in writing of next step.
Preparation: list allegations
List allegations. Consider your options.
Prepare your meeting guide documents.
Focus on facts.
Schedule meeting, venue/room and attendees.
Meeting with employee
Expect emotion but do not let it rule the day.
Focus on facts. Ask questions.
Find out the reason for actions/behaviour.
Listen to employee response.
Conclude. Reschedule follow up meeting.
Consider and decide
Review and consider employee response and facts.
Be fair.
Consider appropriate/measured response options.
Decide on action.
6A. Informal follow-up meeting - You decide not to proceed with a disciplinary outcome:
Communicate decision to the employee and conclude the process. Options include:
No Action
Informal Verbal Counselling
Written Formal Counselling
6B. Formal follow up meeting - Conduct employee follow up meeting and confirm decision/action to proceed with a disciplinary outcome.
Outline the level of disciplinary action. Options include:
Formal Warning
Final Warning Issue written notice/warning. Provide time for employee to consider. Schedule follow up meeting
7. Performance improvement plan
(If performance related). Implement the work performance improvement plan. Return to work and support the employee to improve. Hold regular meetings to evaluate performance.
8A. Performance/conduct improves
A positive result, the employee improves and depending on the nature of the conduct, the warning may lapse.
8B. No improvement
Undertake this process again, potentially to the next level of warning. If they’re already on a Final Warning, you may need to consider dismissal.
The following provides detail aligned to each step on the Disciplinary Process Map (page 24). As you work through the process use these documents as your guide to keep you on track.
This is the time to reflect on initial observations and clarify if a concern raised by an observer is a misunderstanding e.g. only being aware of “part of the story”. You just need to make a call on whether there is a genuine concern requiring more information or whether there is a need to clarify an issue which is easily explainable and reasonable. Review any verbal or written complaint related to the employees conduct and/ or work performance. If it is in writing acknowledge the complainant in writing. Undertake your own investigations and gather more information. This can observing the employees work or conduct and discussing your concerns with other managers. Decide if the behaviour requires further formal review or if it can be successfully addressed through an informal discussion with the employee
If you have concerns or reservations this is your opportunity to informally follow up on the allegations before commencing formal action. You may need to meet with other managers or the complainant and seek more information from them. Ensure as far as possible you have your facts correct and that you take into account any other factors which could be impacting on the employee’s behaviour. If appropriate meet informally with the employee in a private place and raise your concerns with them to hear their views. Then decide if you need to take formal action. If you decide you do not, advise the employee and complainant of this verbally. If you are going ahead with a formal process you should put this in writing to the employee. This letter should:
Advise the employee of the allegations against them.
Set a time and place for a formal meeting to discuss these and advise them who will be present.
Advise them that they may have a support person with them.
That subject to the outcome of the meeting you may take disciplinary action against them.
Before the meeting review the documents and make sure you are comfortable with the content. This is your process and your business, so you need to be able to support what is written down when questions are asked. Prepare for the meeting by getting all of the relevant documents together in a confidential file and review them. Check off the following to ensure you are prepared:
Does the content of your letter accurately reflect the events?
Does it include everything you wish to discuss with the employee? You are not able to introduce new content once consultation has commenced; nor can you change the proposed outcome without restarting the consultation process.
Does the proposed outcome capture everything you want to achieve? This includes options for recovery of money, alternative duties etc.
Have you collected all supporting evidence? e.g. CCTV footage, GPS data, statements from witnesses etc.
Do you have another company representative arranged to attend with you? This should be another company director or somebody with formal management seniority.
Read through the script so that you are comfortable with the content, practice your delivery a number of times so it flows freely when you deliver it.
This is the meeting where you communicate your concerns to the employee. Make sure that you communicate your concerns to them clearly and that they understand the allegations. It may come as a shock to them and you might encounter emotion or hostility as the person is faced with the allegations for the first time. If the meeting was upsetting, allow them some time to collect themselves before proceeding. Make sure you have sufficient time in your schedule to allow for this to happen. Do not book another meeting straight after this one. Do not behave in a way that suggests you have already decided what the outcome will be, the consultation process is very important. Do not speak to the employee with coworkers around, or in a public place, such as a cafe. The process is private and confidential, and it may be embarrassing and upsetting if others hear.
When you get to the meeting, follow the script closely. It aligns directly to the letter that you will give the employee so their is minimal confusion. The words in the script have been carefully chosen, so say them all. The employee is not required to give a response at this meeting and it is important they don’t, as they need time to seek advice and prepare their response. This meeting adjourns for their consideration period. You are not required to do anything during this time, other than make sure you are available if the employee (or their representative) have any clarifying questions or need to get in touch with you.
The consideration period is generally two working days, unless you mutually agree to a longer or shorter time frame. Anything up to 10 working days is considered reasonable. You do not have to extend beyond 10 days, and you may compel them to attend the meeting after 10 days if they try to further delay the process (provided they are physically able to attend). Time off work is not necessary, but they may request some time off to consider their response. Provided it is not unreasonable, then you should consider granting it on pay.
The employee may ask for more information. The law requires you to reasonably provide all the information that you are considering so that they employee can adequately consider and respond to your concerns. In some cases, you may find that the employee does not want to wait. They may state something such as “There is nothing to say, I did it, I’m sorry, let’s get on with it” or “I will resign right here, right now.” Even in such a scenario, you must allow them a consideration period and give them the opportunity to present a response.
If the employee offers to resign, do not accept their resignation. Say: “Your departure from the business is not our desired outcome; we are only raising some concerns with you. Please take 24 hours to consider whether resigning is what you want to do.” Once the employee has had an opportunity to consider the allegations you should reconvene the meeting to hear their response. At this meeting you should listen to the employees views and then adjourn for consideration before making a final decision. This is the employee’s meeting, so they should do most of the talking. This is their opportunity to provide their response so you can carefully consider it before making a final decision. Follow the script closely as it sets the right tone for the meeting, then hand over to them.
However, you may ask questions, clarify their responses and challenge points that they make. This is not an interrogation, but should aim to be as comfortable as possible that you have received a thorough response. Challenging the points they makes might be required if they try to explain their actions in a manner you don’t necessarily agree with. For example: “I only turned up late to work because I was told to.” If this is simply not true and you have a written roster demonstrating their start time, then you should challenge this response and seek further clarity from them. For example: “Are you certain of this? When was this instruction given? Who gave it to you? What exactly were you told about the start time? Have you seen this written roster before? We may take a short break to confirm this with the manager.”
Take notes on the pages provided. Retain these notes and upload a scanned copy to MyHR; you may wish to type up your notes from the meeting but retaining hand written notes is important. Once again, do not behave in a way that suggests you have already made up your mind. You should appear genuinely interested in their response, and your questioning should be designed to deliver a clearer understanding of the situation so you can make the right decision. Once you have received their response, proceed to Step 5.
Think about the employee’s response and factor this into the final decision. The length of this adjournment is open to your interpretation and depends largely on the response given by the employee. As a rule, 1 hour is the minimum adjournment period. It should increase from here based on the amount of information you need to factor in to your decision making. Make sure you give yourself time to consider everything before making your final decision. If they don’t offer much in their response, then you don’t have a lot to consider, and 1 hour allows you time to review your decision and make contact with MyHR to confirm your decision.
In contrast, if they have provided a detailed response (possibly in writing) you may need to take several hours or days to review and consider everything before making your final decision. You may even need to investigate further, if they have presented a lot of new information that you previously weren’t aware of. Don’t be afraid to take your time at this step, it is important you make an informed decision. You may ask them further clarifying questions during this consideration period if you need to. This may even require another meeting to clarify some points. When you are ready, proceed to Step 6.
If you decide not to proceed with a disciplinary outcome, communicate this to the employee and conclude the process. Having carefully considered everything the employee has presented, you decide that formal action is not needed, as they have provided you with a solid explanation and/or given you information you previously didn’t have. In these cases you may decide to:
Take no action.
Verbally counsel the employee
Issue them with a written counselling.
You present this to the employee and request a letter from MyHR to communicate this in writing.
Or...
If you decide to proceed with the disciplinary action, communicate this to the employee. Outline the level of disciplinary, the performance improvement plan, and future expectations of performance and/or conduct. Having carefully considered everything the employee has presented, along with all the information that you started with, you determine that a warning needs to be issued. The person is entitled to know exactly what the warning is being issued for and why their behaviour is not considered appropriate. You must also advise them clearly of the level and implications of the disciplinary action.
Your options for this include:
Formal warning - conduct/ poor work performance.
Final warning - repeat or serious breach of conduct.
Termination of employment (see separate process)
This should be put in writing and should outline what is expected of them in the future and what the implications are if they fail to meet these. You should meet with the employee to give them this and ensure they understand what is expected of them. If a matter relates to the employees conduct you should monitor them to ensure they maintain the required standard of behaviour.
If the matter relates to the employees work performance you will need to implement a clearly outlined performance improvement plan (or “PIP”) with support from the company. This shows the company is serious about helping them improve and working towards a positive outcome. A PIP can be very simple. For example, if the warning was issued for repeated lateness, the plan may simply be to give them another written roster outlining the start times for their shifts and to suggest they buy a working alarm clock, or maybe you might buy one for them. Or, a PIP can be more complex. For example, if the warning is for poor work performance, the plan may include some extra training and a weekly review meeting each week for 2 months to provide additional support and guidance. Whatever the PIP is, you must actually implement it! There is no point committing to a plan that you never follow. If this happens, future warnings may not be possible. It is very easy to say you will conduct regular performance review meetings, but it can be harder to follow this through. If you said you would do it, then you must. One of two things will happen...
A positive result, the employee improves and after 12 months the warning is no longer valid. This is a great outcome and is the whole point of a disciplinary process. The good person you thought you hired now performs/behaves in an acceptable way and you can all move forward. You do not have to continue with disciplinary or potential dismissal. Hopefully you never need to do this with them again.
Or...
Undertake this process again, potentially to the next level of warning. If the employee is already on a Final Warning, dismissal may need to be considered. Despite your best efforts and support, with a clear Formal or Final Written Warning, the employee does not improve. This could be directly related to previous warning or it may be a separate matter, but equally unacceptable. You therefore need to undertake the disciplinary process all over again, following the same steps. The outcome second time round might be a Final Written Warning. The same process applies. Or, if they are already on a Final Written Warning, you may be considering dismissal.
