The grievance procedure in the United States is a form of conflict resolution utilized by voluntarily by many companies and as a matter of law by some others. Title 5 United States Code, Section 7121 (Grievance Procedures) mandates collective bargaining agreements (agreements often arranged through unions) must include administrative procedures for handling grievances. The law explicitly states the process must be fair and simple and handle the matter quickly.
The expedited handling of grievance matters is a major benefit for both the complainant and organization. The reduction in time away from work activities lessens the financial impact and can increase morale if the problem is solved to the satisfaction of those involved. The speedy process can address problems when first reported so additional complaints related to the first do not compound the issue. Compounding issues are generally noticed when a dispute affects more than one employee, such as a pay issue. The grievance process can curtail the issue quickly by formulating new policy to avoid additional complaints in the future. Employee satisfaction is something investors will examine, so keeping morale high can again help to financially stabilize the company.
Another benefit is the simplification of the process. Court systems tend to be burdensome and will only address issues of law. The grievance procedure allows employees to address non-criminal matters, usually personnel issues. The simple and generally informal process is designed to invite the two parties to work together to seek out a mutually beneficial resolution rather than the court's ruling in favor of one side. Money again comes into play because the court process can be expensive with attorney and court fees.
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