Posted on: 15/05/2025

Thought Leadership

Mediation is strategic, not just procedural. Integrating mediation helps councils resolve conflict effectively, enhance workplace wellbeing, and build stronger teams—driving smarter decisions, healthier relationships, and more resilient public services.

By Rachael Simpson, Principal Consultant HR

In the intricate world of local government, where limited resources meet escalating community needs, workplace conflict can pose a significant challenge. Traditional grievance procedures, while necessary, often come with considerable financial and relational costs, it’s time for local authorities to consider a more efficient, relationship-focused alternative—mediation.

The strategic gap in current approaches

Whilst councils have formal grievance policies, a significantly smaller proportion have integrated mediation as a structured part of their conflict resolution frameworks. This disparity creates a strategic vulnerability: conflicts are often allowed to escalate unnecessarily before intervention occurs. When examining why mediation remains underutilised, several factors emerge:

• Historical reliance on procedural approaches to workplace issues

• Misconceptions about mediation's appropriateness for complex public sector disputes

• Limited awareness of mediation's cost-benefit ratio among financial decision-makers

• Concerns about deviating from established processes in a scrutinised public environment

These factors have created a situation where mediation often exists on the periphery of conflict management strategies rather than at their core. Addressing this gap represents a significant opportunity for forward-thinking local authorities.

Key benefits of mediation in Local Government

Cost efficiency in an era of financial constraints Local authorities face continuing budgetary pressures, making the economic case for mediation particularly compelling. The cost of a formal grievance can be circa £9000 when accounting for direct and indirect costs. Local Government processes sometimes involve additional procedural steps that can increase costs.

It's worth noting that these figures typically include:

• Investigation time

• Management time spent in meetings

• HR professional involvement

• Documentation and administrative costs

• Potential legal advice

• Lost productivity from all parties involved By comparison, mediation is generally considered more cost-effective, with typical costs ranging from circa £500 to £2,000 per case, representing significant potential savings.

Preserving organisational knowledge and relationships

Local government effectiveness depends on stable working relationships and retained organisational knowledge. When conflicts escalate, they frequently result in staff turnover, sickness absence, or disengagement. Mediations focus on relationship repair rather than blame allocation helps preserve valuable working relationships and the specialised knowledge that experienced staff possess, which is particularly valuable in technical areas like planning or social care.

Alignment with public sector values

Mediation's collaborative approach naturally aligns with public service values of fairness, transparency, and community focus. By modelling constructive conflict resolution internally, local authorities demonstrate the same values they promote in their communities. This alignment strengthens organisational integrity and reinforces the public service ethos that motivates many local government employees.

Reduced administrative burden

HR teams frequently operate with limited resources, particularly in smaller councils. Traditional grievance processes create substantial administrative burdens through formal investigations, hearings, and appeals. Mediation streamlines conflict resolution, typically requiring 1-2 mediation sessions rather than weeks or months of procedural steps, allowing HR professionals to focus on strategic priorities.

Supporting workplace wellbeing initiatives

With mental health awareness a priority across UK public services, mediation supports workplace wellbeing strategies by addressing conflicts before they impact psychological health. Research indicates that unresolved workplace conflict contributes significantly to stress-related absence, creating substantial costs for local authorities. Mediation's early intervention approach helps mitigate these costs.

Evidence of success: Filling the strategic gap

Local authorities that have integrated mediation as a core element of their conflict resolution strategies typically report positive outcomes.

These commonly include:

• Reductions in formal grievance proceedings

• Higher resolution rates for interpersonal conflicts

• Improved working relationships following mediation

• Decreased absence rates related to workplace stress • Cost savings from reduced formal proceedings

These outcomes demonstrate how mediation can effectively fill the strategic gap in conflict resolution frameworks when implemented systematically rather than as an occasional alternative.

Implementation considerations for Councils

Embedding mediation in HR policy frameworks

Local authorities can maximise mediation benefits by explicitly incorporating it into their conflict resolution frameworks. Progressive councils have positioned mediation as a first-response option, before formal procedures are initiated.

This approach normalises mediation and increases uptake rates. It should be noted that mediation can never be mandated however, it takes 2 willing parties to make mediation a success and so policies which “require” mediation (for example as a step before submitting a formal grievance) are not appropriate.

Cross-authority collaboration opportunities

Smaller district councils can explore shared mediation resources across regional partnerships. Regional Employer Organisations have demonstrated how authorities can access mediation expertise cost-effectively through collaborative arrangements, making quality conflict resolution accessible regardless of organisational size. WME have a mediation offer 

Creating a strategic integration plan

For councils seeking to address the mediation gap in their conflict resolution strategies, a phased approach has proven effective:

1. Assessment phase: review current conflict patterns, costs, and outcomes

2. Policy integration: update HR policies/frameworks to explicitly position mediation

3. Capability development: Train internal mediators or access independent mediators and educate managers

4. Communication campaign: build awareness and understanding across the organisation

5. Evaluation framework: establish metrics to track mediation's impact and ROI

In today's challenging local government and wider public sector landscape, the question isn't whether councils or organisations can afford to incorporate mediation into their conflict resolution strategies, but whether they can afford not to. The evidence increasingly suggests that mediation represents not merely an alternative dispute resolution technique but a critical missing piece in comprehensive conflict management approaches. By reducing costs, preserving relationships, and aligning with public service values, mediation offers a practical tool for navigating the complex people challenges they face. As Leadership Teams and HR professionals seek sustainable approaches to workforce management, addressing the mediation gap deserves priority consideration as an opportunity to develop more effective, efficient, and resilient public organisations.

If you would like to know more about WME’s Mediation Service, please contact info@wmemployers.org.uk