Written by Heidi Wadsworth | 9th February 2026
Formal grievances are becoming more common across UK workplaces. That’s not just something we’re hearing anecdotally – it’s something we’re seeing consistently in our work with clients. Issues that might once have been dealt with through a conversation are increasingly landing as formal complaints, often with significant consequences for everyone involved.
The cost of this is huge. ACAS estimates that workplace conflict costs UK businesses around £28.5 billion every year. That equates to roughly £800 per employee once you factor in management time, investigations, legal advice, tribunal claims, absence, staff turnover and the wider impact on morale and productivity. Those numbers are eye-watering, but behind them are very real people, stretched managers and organisations under pressure.
What makes this particularly frustrating is that many grievances don’t start out as grievances at all. They start as niggles, misunderstandings or moments where someone feels unheard, side-lined ignored or unfairly treated. In many cases, those issues could have been resolved early and informally, if the right conditions had been in place.
By the time a formal grievance is raised, relationships are often already damaged. Trust may have gone and at that point, even with the best process in the world, resolution becomes harder and more stressful for everyone involved.
Managers may avoid talking about the issue, hoping it will resolve itself, or just go away. They may worry about saying the wrong thing or making the situation worse. In some cases, they may also be unclear about where informal conversations end and formal processes begin. Some worry about saying the wrong thing or making a situation worse. As a result, issues are sometimes avoided or parked, which can unintentionally push employees towards raising a formal grievance instead.
But this doesn’t have to be the case – organisations that actively invest in early resolution, psychological safety and manager training tend to see fewer formal grievances and better working relationships overall. That’s exactly what we’ll be exploring in more depth in our upcoming webinar.
Why people raise formal grievances
Most people don’t raise a formal grievance lightly. In fact, it’s often the opposite. Many employees see it as a last resort, taken when they feel they have no other option.
When they feel ignored, judged, disrespected or not taken seriously, a formal process can feel like the only way to be heard.
If employees don’t feel safe to speak up informally, or they’ve seen others do so with negative consequences, they’re far more likely to go straight down a formal route. Previous poor experiences, inconsistent manager responses, or a culture that discourages employees to speak up can all contribute.
For managers, avoiding difficult conversations, brushing concerns aside or hoping issues will resolve themselves has the opposite effect. It sends a message, often unintentionally, that informal conversations aren’t an option.
Sometimes employees simply don’t realise there are informal options available. If policies focus heavily on formal procedures, or if managers lack confidence in handling early conversations, formal grievances can quickly become the default.
Creating a psychologically safe environment
Psychological safety is about people feeling able to speak up without fear of being dismissed, blamed or penalised. When that safety exists, issues tend to surface earlier, when they’re still manageable.
In psychologically safe workplaces, concerns are raised as conversations rather than complaints. People feel able to say, “Can we talk about this?” instead of “I want to raise a grievance.” This doesn’t mean encouraging people to say whatever they like, however they like. But when leaders and managers create a culture of openness and respect, it normalises difficult conversations. Over time, those conversations become part of everyday working life.
Leadership has a significant influence here, because the tone set at the top filters through the business. When leaders are open about challenges, respond calmly to conflict and support managers through difficult situations, it creates trust. And trust is what allows people to speak up early.
Our upcoming ‘Preventing Grievances’ webinar looks closely at psychological safety, including emotional triggers, communication styles and practical ways to build manager capability in this area.
The manager’s role in stopping issues from escalating
Line managers are usually the first person an employee speaks to when something isn’t right, which can feel daunting.
Some managers are promoted because they’re good at their role, not because they’re experts in handling difficult conversations or conflict. They may not have been trained in these areas, yet they’re expected to manage them alongside their other responsibilities.
What managers really need is training and support. They need to understand the impact of early intervention, feel confident communicating on sensitive subjects, listening, and know when to escalate or seek advice. They also need to feel that addressing issues early is encouraged. Our manager training focuses on this, building practical skills in communication, listening, self-awareness and early resolution, helping managers feel capable to deal with issues when they arise.
Improving grievance policies
Many grievance policies unintentionally push people straight towards formal processes. While formal procedures are essential in some cases (such as harassment), they shouldn’t be the only option available.
Policies that actively encourage early, informal resolution give managers permission to act sooner. They also reassure employees that raising concerns won’t automatically trigger an investigation or formal process.
A policy needs to clearly state that at the informal stage, every effort should be made by all parties involved, including the employee who raised the concern, to resolve matters without escalating to formal procedures. Mediation can be valuable here – according to The Centre for Effective Dispute Resolution (CEDR) the overall success rate is 87% and it saves businesses around £8 billion a year in wasted management time, damaged relationships, lost productivity and legal fees.
Mediation creates space for people to be heard and understand each other’s perspectives. A mediator, usually an external third party, will facilitate a discussion between people to help them work towards a solution. It’s often the solution for problems such as team breakdowns, personality clashes and disciplinary cases.
Our mediation services offer a proactive approach to solving disputes, restoring trust, and building healthier, more resilient teams.
How to take action
Preventing grievances starts with understanding what’s really happening in your business. Looking at conflict trends, past grievances, absence data, exit interviews and employee feedback often highlights issues long before they become formal complaints.
Managers need to know they’ll be backed when they handle issues early and appropriately, so it’s important you have support from leadership teams. Training, coaching and access to support gives managers the confidence to address issues informally and you should review your grievance policy to ensure it supports managers doing this.
It’s important not to forget that formal grievance processes absolutely have their place and some situations require them. But when they become the norm rather than the exception, it’s often a sign that earlier opportunities for resolution are being missed. Early resolution saves time, reduces cost, protects relationships and creates a more open, trusting culture.
If you’d like to explore this further, we’d love you to join our free webinar, ‘Preventing Grievances: Building a culture of early resolution and confident conflict management’, on March 24 from 10am to 11am. It’s hosted by Heidi Wadsworth, Head of L&D, and myself. We’ll be sharing practical, real-world strategies you can use straight away.
Book your place here
If you have any questions about grievance procedures, mediation or conflict resolution, please get in touch with our team at info@realityhr.co.uk
About the author: Heidi Wadsworth, Head of Learning & Development | New Business Lead
Heidi takes a hands-on, pragmatic approach to learning and development and new business , working directly with clients to understand their unique challenges, culture, and environment. She combines her extensive cross sector experience in hospitality, retail, and manufacturing with a practical understanding of what works in real workplace situations.
Heidi’s strength lies in her ability to see the bigger picture while managing the practical details. She ensures every training programme empowers delegates to achieve excellence in their roles, creating lasting change that benefits both individuals and the organisation.