Employment Relationship Problems: Costs, Benefits and Choices
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Factors Influencing Decisions On How Employment Relationship Problems Progress
Nearly every case study started with an attempt at internal resolution. The survey found that problems were most likely to be dealt with in-house, both initially (47 percent) and as a final resolution method (31 percent). If respondents had the chance to resolve the problem again, they would generally prefer to do so in-house, without external parties (71 percent).
However, a formal, external resolution pathway can be initiated by either party. Once an employee or employer applied for mediation or an Employment Relations Authority hearing, there was little chance for the problem resolution to continue down an informal path.
In the case studies, pure misconduct cases tended to follow a more predictable path - an internal disciplinary meeting, attended by the employee with a representative, followed by a warning, dismissal, or resignation. In contrast, performance and relationship issues (in particular) tended to be more complicated. Employers seemed to be less clear about how to resolve these issues. As a result, the problem often continued for a longer time. This was aggravated where employers or employees went "fishing" for additional issues, which increased the level of tension and made the problem more difficult to resolve.
For both employers and employees, the stakes involved impacted on their choices regarding the path of the employment relationship problem. For employees, the stakes included whether the employee had found a new job, the impact on their families, or the desire to clear their name. For employers, the stakes included their assessment of the costs of the resolution pathway, the effect of publicity on their reputation, or whether the problem would create a precedent within their organisation.
