Turning Grievances into Growth: A Guide for Handling Employee Complaints with Confidence

Employee grievances. Just the phrase alone can make even seasoned managers hesitate. Grievances signal conflict, dissatisfaction, and sometimes even legal threats, which we’d rather not deal with daily. But here’s the thing: employee grievances are also windows of opportunity. When we lean into these moments with empathy, confidence, and a bit of structure, they can reveal ways to create a healthier, more dynamic workplace. Handling grievances well helps our people feel heard and signals that we’re serious about building a culture where everyone matters.

So, What Exactly is an Employee Grievance?

An employee grievance is a formal complaint about problems at work. These can range from interpersonal conflicts to pay disputes to perceived unfair treatment to concerns around safety and well-being. Grievances reflect areas where employees feel a sense of injustice or frustration, but if handled effectively, they can also be invaluable feedback for organisational improvement. Think of them as saying, “Here’s an area where things could be better.”

Grievances can be informal or formal. An informal grievance might be resolved with a straightforward conversation, while a formal grievance may involve a more structured process, including investigations and hearings. Either way, addressing grievances in a thoughtful and fair way is essential, not only to prevent issues from escalating but also to show employees that their concerns genuinely matter.

Why Grievances Matter: More Than We’d Like to Admit

Imagine ignoring a grievance—just brushing it under the carpet. The immediate benefit might seem obvious: less hassle and no disruption. However, this short-term approach often leads to longer-term problems. Disengagement, resentment, and even legal action can follow when grievances are ignored or mishandled. On the flip side, addressing grievances effectively can:

• Build trust: Employees want to feel heard. Addressing grievances shows you’re serious about listening and responding.
• Reduce turnover: Unresolved grievances can lead to employees jumping ship, and we all know how costly replacing talent can be.
• Prevent legal risks: The last thing anyone wants is a grievance turning into a legal case, especially when handling it properly could prevent that.

How to Approach Grievances: A Roadmap for Success

Grievances might be uncomfortable, but with the right approach, they don’t have to be daunting. Here’s a straightforward roadmap to help you manage grievances with confidence, empathy, and a clear purpose.

1. Acknowledge and Empathise

When an employee comes to you with a grievance, the first step is acknowledging it. It’s easy to get defensive or dismissive, especially if the complaint feels unfounded or out of proportion. But remember, from the employee’s perspective, this is important.

Tip: Listen with empathy. Show that you’re engaged and value their perspective. Sometimes, employees just want to feel they’ve been genuinely heard.

2. Decide: Is it Formal or Informal?

Some minor grievances can be resolved through an informal chat or mediation. If it’s a matter that can be cleared up quickly and amicably, go for it. However, if the employee insists on a formal process or the matter involves more severe issues like harassment or safety concerns, follow the formal route. Your organisation's grievance policy typically governs a documented process in this situation.

Note: Always let the employee decide if they’d like to go informal, especially if they feel it’s a quick fix. But remember, a formal approach is safer for everyone involved in serious issues.

3. Arrange a Grievance Hearing

If a formal grievance is necessary, set up a grievance hearing. This is a structured meeting where the employee presents their concerns. They can bring a colleague or union representative with them, which is important for ensuring a fair process.

During the hearing, you'll need to listen, take notes, and ask clarifying questions. Resist the urge to jump to conclusions or make any decisions on the spot. This is their time to share and your time to listen.

Quick Win: Acknowledge their courage in bringing this up. Filing a formal grievance is no small thing, so a little recognition goes a long way.

4. Investigate Thoroughly

This step can sometimes feel like a burden, but it’s where you can make a difference. Investigate impartially and thoroughly—gather relevant information, talk to witnesses, and review documents. It’s important to remain neutral, even if you feel you already know the answer.

Let’s be clear: transparency is everything here. Keep the employee informed about the progress, and when you can, give them realistic timelines. They’ll appreciate knowing that the issue isn’t being brushed aside.

5. Reach and Communicate an Outcome

After the investigation, it’s time to reach a decision. Communicate the outcome in writing, clearly and respectfully. If the grievance is upheld, outline your actions to address it, such as implementing new procedures or adjusting workloads. If it’s not upheld, explain why—in as much detail as is appropriate. Either way, clarity and respect are essential.

Employees should know the “why” behind your decision. A well-communicated outcome doesn’t just conclude things; it helps build trust and transparency.

6. The Appeal Process: Offer a Second Opinion

If the employee is dissatisfied with the decision, offer an appeal process. Appeals allow for a fresh set of eyes on the issue, which reassures the employee that they’re being treated fairly. Someone uninvolved in the initial investigation should handle the appeal, as it gives the matter a fair review.

Case in Point: Why Mishandling a Grievance Can Backfire

Here’s a real-life example for context. In Slade and Another vs. Biggs and Others, two employees raised grievances when their employer dismissed them after they both became pregnant. One was fired under the guise of gross misconduct, while the other resigned after her grievance was ignored. The tribunal upheld their unfair dismissal claims, emphasising the employer’s failure to follow fair procedures. The lesson? Mishandling grievances, especially sensitive ones, can lead to costly legal repercussions and significant reputational damage.

Reimagining Grievances as Growth Opportunities

Grievances can be complex, but what if we saw them as opportunities rather than disruptions? Handled correctly, grievances reveal valuable insights into your organisation’s culture and practices. They’re like warning signs, allowing you to address issues before they escalate into crises. Here are some key outcomes you can achieve by taking grievances seriously:

1. Time and Cost Savings: Resolving grievances internally saves money and time that might otherwise be lost to legal proceedings or recruitment if an employee decides to leave.
2. Improved Trust and Team Dynamics: Careful grievance handling builds trust, leading to better relationships between employees and management. Employees who see that their concerns matter are more likely to be engaged and productive.
3. Refined Policies and Processes Grievances often highlight areas where policies need updating. Addressing these gaps can lead to more effective, current practices that benefit everyone.
4. Enhanced Productivity and Job Satisfaction Grievances handled well clear up misunderstandings, help redistribute workloads more fairly, and improve work-life balance, leading to a more positive, productive work environment.

A Final Thought: Grievances are Not Just Problems to be Solved

It’s easy to think of grievances as “problems” that need fixing. But when we shift our perspective, we see that grievances can be something more—they’re feedback—feedback on our processes, culture, and how we’re living up to our commitments as an organisation. And in every piece of feedback, there’s an opportunity to do better, to be better.

So, the next time an employee comes to you with a grievance, pause and remember: you’re not just managing a complaint—you're managing a moment of truth. How you handle it will leave a lasting impression on that individual and your whole team. By addressing grievances with empathy, respect, and a clear plan, you don’t just solve issues; you build a workplace where people feel safe, valued, and heard.

Grievances might be hard work, but they’re worth it. When handled well, they can lead to lasting positive change, creating a culture where employees and managers can thrive together. By reframing grievances as a natural and constructive part of organisational life, we resolve conflicts and turn them into stepping stones towards a better workplace for everyone.

About the Author: Karl Wood is a seasoned HR leader and the founder of WINC HR Strategy and Solutions, with over 25 years of experience driving HR transformation across global markets. Karl has partnered with industry-leading organisations from Europe to Asia Pacific and the US to create inclusive, resilient workplace cultures that stand the test of time. Known for his strategic, forward-thinking approach, he specialises in navigating the challenges of today’s evolving workforce through innovative leadership development, diversity, equity, and inclusion (DEI) initiatives, and employee engagement strategies.

For more actionable insights and the latest trends in HR, leadership, and workforce strategy, subscribe to the HR Horizons newsletter. Let’s stay connected—follow me on LinkedIn, and don’t hesitate to reach out. I’m always available for a chat, advice, or collaboration!