Summary: There are many hidden costs to getting discipline wrong. These can have a long-term impact on both organisational culture and effectiveness. Lost staff, damaged teams and burnt-out HR professionals are among the repercussions.
Acas recently estimated that the cost of managing formal disciplinary and grievance procedures for UK employers is £2.36 billion a year.
And whilst concerns about the cost related to disciplinary procedures is often associated with employment tribunals and legal fees, there are many hidden costs to getting discipline wrong which can have a long-term impact on both organisational culture and effectiveness.
In writing ‘Under Investigation: Transforming Disciplinary Practice in the Workplace’, we explored some of the less obvious costs through a series of case studies.
Beyond the real human impact, they highlighted that the poor application of disciplinary policy can leave organisations counting the cost, long after the investigation is over.
A long-lasting impact
For example, Anne had worked as a dedicated nurse and midwife for all of her working life. When she was taken through a disciplinary process (later acknowledged by her organisation’s HR team as unnecessary), it led her to take early retirement because the experience had broken her.
Her organisation lost a highly experienced and qualified member of staff, who worked well above her contracted hours because of the vocational nature of the role. They were left needing to replace Anne. This included recruitment costs and the resources needed to bring a new employee up-to-speed.
Disciplinary processes often affect more than just the person under investigation. John, an OD practitioner, had been asked to support a struggling team where morale was low and output was significantly below where it needed to be.
John identified that a poorly run disciplinary process a number of years previously, that had involved several members of the team, had led to ruptured relationships impacting the team’s ability to operate effectively.
An alternative approach to the formal process used to address the original issue, may well have led to a better outcome for both the employees and the organisation.
Disciplinary processes often affect more than just the person under investigation
When the damage is done
A rush to enact formal processes can damage relationships. These can take a significant time to recover, and sometimes they never do. Tomos was a goods’ driver who had been taken through a formal disciplinary process because he had claimed excess mileage.
During the process, it was found that he hadn’t received training on how to use the organisation’s expense system. Therefore the excess claim had been a legitimate error.
In addition, poorly applied disciplinary processes can create a level of fear across a workforce. This can lead to reduced innovation, trust and organisational commitment, along with a reduction in work performance and engagement.
Investigations hurt HR too
In speaking to many HR professionals and individuals responsible for leading and supporting investigations, we have found that they too can be detrimentally affected.
Helen had been a HR business partner for the majority of her career. But it was the pressures associated with running disciplinary processes, as well as insufficient support being provided to deliver them, that led her to leave both her organisation and the profession.
We know from recent research that HR professionals are under increasing pressure from the demands of the role. This can be exacerbated by challenging employee relations activity.
This is leading to high levels of burnout and individuals like Helen leaving the profession. This puts additional cost and capacity pressures on organisations.
The end of a disciplinary process and the poor reintegration of employees can also lead to substantial hidden costs. In many cases, a disciplinary does not lead to dismissal. The failure to provide adequate support to someone during, and after the process, can lead to longer-term impact.
This can include a demotivated member of staff, presenteeism and negative interaction with those they come into contact with.
There are clearly times when disciplinary processes need to be applied. However, considering ways to manage them more fairly and mitigating their impact can reduce associated costs. As well as the longer-term impact on organisations.
Poorly applied disciplinary processes can create a level of fear across a workforce
Four ways to reduce disciplinary related costs:
1. Review how your organisation decides whether a disciplinary process is required.
Do you collect sufficient information in order to make the right decision? Do you collect details on more than the presenting issue and consider wider contextual factors? Have you considered any internal biases that may affect decision making?
2. Think about the support you provide employees being taken through a disciplinary process.
These processes are increasingly being understood to cause potential psychosocial harm to those under investigation. What do you have in place for employees to help them navigate the process and manage their health and wellbeing during it?
3. Reflect on the support you provide your HR colleagues and investigators.
How can you support those involved in leading investigations to debrief from challenging disciplinary processes and prepare for future ones? Are you able to create a pool of staff to lead processes, so that the same people aren’t always being called upon?
4. Consider the support you provide for employees and others involved in investigations following their completion.
A disciplinary process can be a life-changing experience for an employee. The return to existing roles and relationships can be challenging. What support can managers and the organisation provide to help them return or re-integrate as effectively as possible?
If you found this article useful, read: An expensive lesson on how not to deal with protected disclosures
