Before I share the top reasons why I urge parties involved in a workplace dispute to use mediation to resolve it, I think it's probably helpful to define the commone dispute resolution terms.
In negotiation, two or more parties discuss directly their conflict and try to resolve it. There are no third-parties involved.
In a mediation, the parties in conflict ask a third-party (the mediator) to try to help them resolve their conflict. The mediator is a neutral and does not decide what is "fair" or "right." Rather, the mediator's role is to moderate and guide the process in an attempt to bring the parties together by defining issues and eliminating obstacles to communication. Although a mediator may point out to the parties potential strengths or weaknesses in their positions in an effort to help facilitate resolution, the decision making power remains always with the parties to the conflict.
In an arbitration, the parties to the conflict have agreed that a third-party (the arbitrator) will hear the evidence presented by each of the parties and make a decision. The arbitrator's decision can either be binding on the parties or non-binding depending on the terms of the parties' arbitration agreement.
Litigation is the term used to describe the filing of a lawsuit in court and the process that follows the filing of the lawsuit. Most commonly in litigation involving workplace disputes, issues of law are decided by a judge and issues of fact are decided by a jury.
I've also created a Dispute Resolution Continnum that in picture form highlights some of the differences in these four common dispute resolution processes. Click here for a link to that chart:
In considering these four common dispute resolution processes, several things become clear.
Parties Retain Control in Negotiation and Mediation and Cede Control in an Arbitration or Litgation
The first thing that jumps out at you in looking the definitions of the four most common dispute resolution processes is that as you move from negotiation to mediation to arbitration to litigation the parties increasingly cede control for decision making to a third-party. Now many readers may think -- well that's not so bad. Sometimes you just can't resolve a workplace dispute and it's better - easier - to just hand the issue to a third-party and let them decide. Maybe.
When I discuss the potential of having a jury decide a dispute with parties in a mediation, I often ask them whether they agree with who gets voted on and off of "American Idol" each week. I know I don't. Those same voters are members of the jury pool. If you are the person involved in a workplace dispute query whether you want to make the decision of how to resolve the issue or whether you are comfortable turning it over to the "American Idol" voters.
The Likelihood of a Win-Lose Answer Increases as You Move to Arbitration or Litgation
Once the parties cede control to an arbitrator, a judge or a jury, the parties also increase the likelihood that one of them will be a loser and one of them will be a winner. Notice the missed opportunity for a win-win resolution.
Monetary and Non-Monetary Costs Increase with Arbitration and Litigation
Costs of lawsuits include not only the legal fees that each of the parties will pay their attorneys, but also fees associated with court filings, depositions and expert witnesses. For the employee, there is also the reality of foregoing a regular paycheck if he or she is not working.
There are also the non-monetary costs.
Non-Monetary - Employers
For employers, there is the productivity drain that an on-going workplace dispute causes. Research shows that simple incivility or bad behavior in the workplace (much less the distraction caused by a pending lawsuit) has a significant cost. According to research by Professors Christine Pearson and Christine Porath reported in their book THE COST OF BAD BEHAVIOR: How Incivility Is Damaging Your Business and What To Do About It, among workers who’ve been on the receiving end of incivility:
• 48% intentionally decreased their work effort
• 47% intentionally decreased the time spent at work
• 38% intentionally decreased the quality of their work
• 80% lost work time worrying about the incident
• 63% lost work time avoiding the offender
• 66% said that their performance declined
• 78% said that their commitment to the organization declined
• 12% said that they left their job because of the uncivil treatment
• 25% admitted to taking their frustration out on customers
Non-Monetary - Employees
For the employee, there is the personal distress. As Atlanta plaintiff's attorney Steve Mixon explains, "employees cannot start their real healing until the lawsuit is over. While the lawsuit is pending, employees are forced to essentially re-live what happened every time they have to answer their attorney's questions, respond to discovery or give testimony."
The Workplace Dispute Becomes Public Once a Lawsuit is Filed
One of the biggest benefits to employees and employers who can successfully resolve their dispute in either negotiation or mediation is that they can agree to keep the resolution - and perhaps even the dispute - confidential. In a workplace dispute, this can be particularly beneficial to both the employee and the employer. Depending on the terms of the arbitration agreement, it is also possible to have an arbitration and the arbitration decision kept confidential.
By contrast, litigation is public. I think it is particularly important for parties to a workplace dispute to understand this point as it is increasingly easy for any interested party to go on-line and read all of the various documents that make up a lawsuit. As such, investors or potential buyers of a company will often, as a part of their due diligence, read court pleadings to get a feel for the corporate culture. Similarly, potential employers might read court filings as a part of their reference checking.
Insights for Employees and Employers
Control your own conflict. Sit down and talk to each other face-to-face and see if you can negotiate a resolution. If you can't do it on your own, retain an experienced mediator who knows the applicable laws and can work with you to find a win-win resolution.
Do not turn your dispute over to a jury.
Remember, juries are comprised of the same folks who vote for our "American Idol" each week.