Mediation Will Save Your Business

How to settle disputes in your business for more returns

As living and breathing human beings, we are bound to experience some type of conflict. Conflict can be present within a person, between two people, between a person and forces of nature, and even between a person and their employer.

I would like us to focus on resolving conflict at the workplace. Conflict is inevitable whether in small or medium businesses. Article 159 of the Constitution mandates the Judiciary to promote alternative mechanisms of alternative dispute resolution (ADR) in the administration of justice. One of these alternative forms of dispute resolution is mediation.

Mediation is defined as an alternative dispute resolution (ADR) process where parties resolve their disputes with the assistance of a third party called a mediator.

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Mediation is entered into with a very human face.  This is so because it is a voluntary process, carried out by an impartial and neutral person who commits to confidentiality under an agreement to enter into mediation whether or not the process is provided for in the agreement.

At the end of the mediation process, there must be another agreement containing the resolutions. This document can be submitted in court as evidence, that the parties had agreed to mediation, and had reached certain resolutions.

Mediation process in itself comes with various advantages such as:-

  • It is a less expensive process compared to solving dispute through the court process;
  • It is a quicker way of solving dispute compared to court process;
  • People that opt to solve their disputes through mediation decide what their solution is, and customise that solution to their needs;
  • People in dispute easily comply with mediation resolutions because it is their own solution, and because the mediation process is harmonious; (win-win solution for parties)
  • People in dispute that use the process are able to maintain their relationship after the dispute is settled;

Unresolved workplace conflicts account for a large percentage of reducible costs. Lack of proper conflict resolution reduces the morale of staff hence reducing performance. It also creates the risk of employee sabotage by disgruntled staff. It leads to high staff turnover, replacement costs and a tarnished image for the organization.

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To ensure growth in business, managers and employers are advised to look into invoking mediation to settle disputes with employees. This will result in retention of talent, loyalty for employees, the motivation of workers and high business turnovers. Mediation will also save the company or business the high litigation (court process) costs and time.

 


Ngugi Mburu is a Commercial and Litigation lawyer with a reputable Law Firm in Nairobi. Email: [email protected] for any inquiries or clarifications.