Mediation is a process by which employs a neutral third party called a mediator. This person helps people in conflict negotiate a mutually acceptable agreement. The parties to the mediation control the outcome.
A mediator facilitates communication and promotes understanding. He assists the parties to identify their needs and interests. He uses creative problem-solving techniques to enable the parties to reach their own agreement.
Mediation gives parties much more control over the way their dispute or difference is dealt with as well as over the outcome. If negotiations have so far failed, mediation provides an alternative to pursuing litigation or other more formal processes. The scope for solutions is usually greater than the remedies available in courts and tribunals, or even in prolonged negotiation.
- Affordable – Mediation costs considerably less than litigation.
- Efficient – The mediation process can usually settle a dispute within a few sessions. Most mediation’s conclude or settle within thirty days from initiating the process.
- Effective – Mediation statistically settles over 80% of initiated disputes.
- Informal -The process of Mediation is flexible and informal. It is not necessary to have a lawyer represent you during the mediation process.
- Empowering – Disputing parties are directly engaged in the negotiation of their settlement. Parties also enhance the likelihood of continuing their relationships by utilizing mediation.
- Confidential – Information disclosed during mediation may not be divulged as evidence in any trial or judicial proceeding.
An established mediation and conflict resolution program reduces workplace conflict. This is done by providing support for early and collaborative resolution of disputes. Conflict that has the potential to adversely affect productivity, working relationships and morale can be resolved quickly and efficiently.
- It is estimated that over 65% of performance problems result from strained relationships between employees as opposed to deficits in skill or motivation.
- A recent study of practicing managers showed that 42% of their time is spent reaching agreements with others when conflicts occur.
- Up to 30% of a typical manager’s time is spent dealing with conflict.
- Exit interview which ascertain reasons for terminating reveal that chronic unresolved conflict is a decisive factor in at least 50% of all such departures.
- Studies have found that the cost of losing an employee is 70% to 200% of the employee’s annual salary.
- Studies reveal a direct correlation between the prevalence of employee conflict and the amount of damage and theft of inventory and equipment.
- Absenteeism has been shown to correlate with job stress, especially the stress associated with anger toward co-workers.
- 20 years of research indicated that 80% of turnover is related to unsatisfactory relationships with the manager.