Written by Donna Bonfield | 21st August 2025

Mediation at work

Conflict in the workplace can start small – a simple difference of opinion – but if it’s left unchecked, it can quickly escalate.

The impact of unresolved disputes isn’t just felt on a personal level, it’s costly for your business too. In fact, workplace conflict costs UK employers an estimated £28.5 billion a year (around £800 per employee) and can drain productivity, damage morale, increase absence, and of course, take up valuable time.

These days it’s not unusual for employees and employers to turn to AI for advice. With its ability to automate tasks, analyse data and streamline operations, AI has transformed the way we work, so it’s no surprise people are asking it how to handle conflict, from finding the right words for a difficult conversation to navigating a resolution meeting. It’s possible that this easily accessible advice may be a contributing factor to the increase in number of disputes being raised through ACAS.

While AI can be a useful starting point for resolving a situation, it doesn’t always have the full picture to deal with the dispute effectively; often more elements emerge as the process unfolds, and they may be unrelated to the original issue arising. Nor does AI have the people skills, as there is usually an emotional element to any conflict, which will be different for each individual. Here’s a look at why conflict resolution at work should be led by trained mediators.

What is mediation at work?

Mediation is a tool used to resolve workplace conflict efficiently at any stage, including after a formal dispute. It’s less formal than the more traditional disciplinary and grievance procedures but still follows a structured approach while creating a space of psychological safety and helping to resolve issues quickly, which is why businesses are taking the mediation route more often.

Mediation involves an impartial third party (a trained mediator), who works with the disputing employees to ensure they’re heard, that they listen to each other and ultimately reach a mutual and manageable agreement as to how they will work better together in the future.

The mediator is not there to judge, place blame, to determine who might have been right or wrong or to come up with the solution They are there to be supportive, encouraging employees to speak honestly and openly about their concerns, feelings, and core interests in the situation.

Rather than impose a solution, as the outcome would be in a disciplinary or grievance, the mediator facilitates a problem-solving discussion to help the employees find their own solution i,e, creating a win-win.

The sooner mediation is brought in, the better – it can stop conflict from escalating and help avoid both the costs of defending tribunal claims and any impact on other team members.

The human elements AI cannot replace and the human advantage in workplace mediation

AI is advancing quickly, and in some areas, is even starting to simulate empathy. But when it comes to resolving conflict between real people, human mediators have advantages that AI simply can’t match.

People want to be heard, have their feelings recognised and to feel validated. Even when their words suggest otherwise, body language, tone of voice and changes in energy can reveal how people are really feeling, and mediators are trained to recognise this. They are also there to ask what can sometimes be the difficult questions in order to unearth the root of the issue They’re skilled at contextualising what they hear, identifying workplace dynamics, cultural nuances, and underlying factors that may be contributing to the dispute.

Unlike AI, mediators have the experience to be able to adapt in the moment. If tempers flare, they know when to pause for a break or if a breakthrough moment appears, they can dig deeper. They build trust and psychological safety, creating an environment where people feel safe enough to open up and speak honestly and find their own solutions.

There is suggestion that AI is learning to become empathetic, with recent studies claiming AI can express empathy better than doctors and therapists. Researchers asked ChatGPT to generate responses to posts on Reddit about physical and mental health struggles. Next, they compared the chatbot’s responses with those of human doctors and therapists responding to the same posts. Across these studies, the chatbot’s responses were rated as more empathetic.

But AI isn’t embedded in our lives and doesn’t know the whole story, so cannot truly connect. Professional mediators offer trusted support in the moment, learning your story and understanding the people involved as the process unfolds. They can recognise the personal toll workplace conflict takes on health, wellbeing, and self-esteem, and truly connect with people in a way no machine can.

When to use mediation at work

Mediation is most effective when used early, before a disagreement escalates into a formal complaint. It’s suitable for a wide range of situations including strained relationships between colleagues or managers and employees, misunderstandings that have snowballed, personality clashes, or tensions brought on by organisational changes.

It may not be appropriate for every scenario – cases involving serious misconduct, harassment, or safeguarding issues usually require formal investigation. When an individual is experiencing mental health problems or has learning difficulties mediation may seem unsuitable but may still be better that a formal process. Mediation can be flexible to create psychological safety. Participants can bring someone with them for support, and meetings can be conducted as ‘shuttle mediation’ where parties stay in separate rooms while the mediator moves between them to build solutions. In more challenging situations, mediation may also be used at a later stage to rebuild relationships once formal processes are complete.

But in most day-to-day workplace conflicts, mediation can be the quickest and most constructive route forward.

The mediation process – human-centered approach

A typical mediation process starts with private conversations between the mediator and each employee, to understand their experience of the conflict, their position and what they want to happen next. The mediator creates a safe environment for the joint meeting, setting ground rules and making sure everyone understands the process is respectful and confidential.

During the meeting, each person has the chance to share their perspective without interruption, facilitated by the mediator. The mediator then helps explore the underlying issues, identifying what each party really needs to move forward. From there, they guide a collaborative problem-solving process, encouraging the employees to develop solutions they feel comfortable with. It may require more than one meeting, either together or separate confidential discussions, to help each employee to delve deeper into their needs and explore possible solutions. This is where the human touch is highly beneficial, the mediator is able to read the situation and determine the best next step based on the ideal solution.

Once a solution is found, which may involve some give and take from everyone’s starting positions, the agreed actions are documented and signed as a mutual commitment.

The business case for mediation

While formal procedures or litigation are sometimes needed, mediation is often far quicker and cheaper, if they can be avoided. It avoids the legal costs, management time, and emotional energy that disputes can drain from your business.

It also helps maintain future working relationships, something that’s often impossible once a grievance or tribunal process begins. By demonstrating that you value your employees and their wellbeing, mediation supports a healthier workplace culture and can even reduce absence and improve retention.

In short, it’s not just a cost-saving measure, it’s an investment in your people and your organisation by setting a standard for how future conflict will be handled.

Choosing the right mediator

If you’re considering mediation, you’ll want to choose someone with the right training and experience for your organisation. Look for an accreditation from the Civil Mediation Council (CMC), or the International Mediation Institute (IMI) and an approach that feels collaborative. Above all, ensure they can respond quickly, mediation works best as early on as possible.

With AI able to answer questions in seconds, it’s tempting to think it can solve every workplace problem. But conflict is a human experience that requires human skills, empathy, and understanding. Mediation can help people move past conflict and focus on building stronger, more productive relationships.

If you have any questions about how mediation could help in your workplace, please contact myself, Donna Bonfield (IMI), for a confidential discussion at Donna@realityhr.co.uk or on 01256 328428. You can also find out more about our mediation services here.

 

IMI