In the modern workplace, a grievance is one of the most sensitive situations a business can face. Whether it’s an allegation of bullying, a pay dispute, or a concern about working conditions, how it is handled can either protect the company or lead to a costly employment tribunal claim.
Outsourced HR services play a pivotal role in these situations by providing the distance, expertise, and objectivity that are often impossible to achieve in-house.
Here is how outsourced HR services transform the grievance resolution process.
How does an outsourced HR service handle employee grievances?
Providing absolute objectivity
One of the biggest hurdles in small to medium-sized businesses is proximity. If a manager is friends with the person being accused, or if the business owner is directly involved in the dispute, the process can easily be biased—or perceived as biased.
An external HR consultant acts as an impartial third party. They have no history with the employees and no office politics to navigate. This neutrality ensures that the investigation is fair and that the final decision is based solely on facts and evidence.
Ensuring strict compliance
In the UK, there are Code of Practice on Disciplinary and Grievance Procedures, which is the legal blueprint for how disputes must be handled. Failure to follow this code can result in an increase in compensation awarded at an employment tribunal.
Outsourced HR experts ensure every step — the initial meeting, the investigation, the formal hearing, and the appeal — is documented and conducted within the legal timeframe. They act as a procedural shield for the business.
Professional investigation and evidence gathering
A poorly conducted investigation can miss key evidence or inadvertently intimidate witnesses. HR consultants are trained investigators. They know how to interview witnesses, gather digital and physical evidence, and compile a comprehensive Grievance Investigation Report.
This report is vital because it provides a clear rationale for why a grievance was upheld or dismissed, which is your primary defence if the case goes to a tribunal.
Diffusing emotional tension
Internal grievances are often emotionally charged. When tensions run high, internal staff may say things that escalate the situation or lead to constructive dismissal claims. By stepping in as the lead communicator, the outsourced HR partner de-escalates the environment. They maintain a calm, professional tone that keeps the focus on resolution rather than conflict, often preserving the employment relationship even after a difficult dispute.
Post-resolution strategy
A grievance is often a symptom of a deeper issue, such as poor management training, a toxic culture, or unclear policies. Once the grievance is resolved, an outsourced HR service won’t just walk away. They will analyse why the grievance occurred and recommend structural changes — such as updating the employee handbook, providing management training, or implementing new communication policies — to prevent a recurrence.
Read our blog: The benefits of a HR helpline and outsourced HR service
When you outsource your HR, you aren’t just buying advice, you are buying risk management. By handling grievances with professional distance and legal precision, outsourced providers protect your business’s reputation and bottom line while ensuring that employees feel their voices have been heard fairly.
Does your current grievance procedure meet the latest standards? If not, contact HR Circle for outsourced human resources services. We can conduct an HR health check to make sure your business is fully protected.
