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How to Handle Employee Grievances
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How to Handle Employee Grievances: From Discord to Harmony

By Mariah Collins, SHRM-CP on Sep 19, 2025
6 min read 2 Comments

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In today’s workplaces, knowing how to handle employee grievances is essential for building trust, retaining employees and protecting your business. Whether it’s a small complaint or a serious workplace grievance, every issue deserves attention.

Handling these situations fairly and consistently not only helps resolve conflict but also strengthens your culture and reduces legal risk.

This article explores common types of employee grievances, outlines a step-by-step process for resolution and highlights how partnering with HR experts can support business leaders through even the most complex cases.

RELATED: Eradicating Workplace Harassment with a Strong Zero Tolerance Policy >>

What Is an Employee Grievance?

An employee grievance is a formal or informal concern raised by an employee about workplace conditions, treatment or policies. While complaints may be casual and verbal, a grievance typically involves a structured process and documentation.

Types of workplace grievances include:

Discrimination

Perceived unfair treatment based on age, race, gender, disability, religion or other protected category. Discrimination can be intentional or unintentional. Either way, it’s harmful and can prompt a complaint. 

Unfair treatment

Favoritism, overlooked promotions, or biased assignments.

Pay and benefits

Grievances over pay and benefits can occur for a number of reasons. Coworkers may have discussed their salaries, for example, leaving one feeling underpaid in comparison to the other.

Part-time employees might file grievances because their benefits are less robust than those received by full-time employees. Some employees may simply feel underpaid compared to others in the industry with similar titles or responsibilities. 

Harassment

Verbal abuse, bullying or other offensive comments create a hostile work environment and are likely to invite employee grievances. 

Working conditions

Cleanliness, messy coworker spaces, temperature issues, safety concerns or inadequate tools required to perform the required work are all examples of potential workplace grievance conditions. Complaints also can arise if workers believe the company is violating Occupational Safety and Health Administration (OSHA) regulations. 

Workload

Excessive duties without recognition or adequate support is a common employee grievance.

Management disputes

Workplace grievances may arise if an employee disagrees with company leaders about policies, procedures or decisions. 

how to investigate an employee harassment complaint

What to Do About an Employee Grievance 

Most company leaders would agree that some of the grievances employees raise are unjustified. However, each one must be handled seriously. Listening to how employees feel, giving a valid hearing to every grievance and working to resolve the employee’s concern – whether accurate or not – is important to your company’s culture. 

Failing to take appropriate steps can be severely detrimental and could even mean that a legitimate, impactful organizational problem goes unnoticed. While dealing with grievances can disrupt the workplace, it also provides an opportunity to hear employees out and address the real concerns that could otherwise limit their productivity. 

Step-by-Step Process: How to Handle Employee Grievances

A clear process ensures consistency and builds employee confidence in your leadership. Below are the key steps:

1. Encourage Informal Resolution

Often, an open conversation between the employee and their supervisor resolves the issue. Listening respectfully and acknowledging concerns can stop small problems from escalating.

2. Document the Concern

Even if a grievance seems minor, always document it. Records help identify patterns and provide protection if legal questions arise later.

3. Evaluate the Situation

Review the details carefully. If the matter is straightforward, propose a quick solution. If more serious, move into a formal investigation.

4. Conduct an Investigation

For allegations of harassment, discrimination, or other serious issues, carry out an impartial investigation. In many cases, working with a third-party HR professional like Axcet ensures neutrality and compliance.

  • Collect written statements

  • Interview witnesses confidentially

  • Gather supporting documents or evidence

5. Mediate and resolve

If appropriate, bring parties together for mediation. A neutral facilitator can help find common ground. If mediation fails, leadership (with HR or legal input) should determine a resolution. Clearly communicate the decision and reasoning to all involved.

6. Provide an Appeal Process

Employees should have the option to appeal if they feel their grievance was not fairly resolved. Appeals should be reviewed by a different manager, HR professional, or panel to ensure fairness.

7. Follow Up and Monitor

Check back with the employee and team to ensure the resolution holds. Document the outcome and continue monitoring for similar issues. Tracking grievances helps you identify workplace trends that may require broader policy changes.

Comparing Informal vs. Formal Grievance Processes

Not every issue requires a formal investigation. Understanding the difference helps managers know how to handle employee grievances appropriately.

Aspect

Informal Process 

Formal Process

Best for

Minor misunderstandings, quick fixes Serious issues (harassment, discrimination, legal risk)

Typical Steps

One-on-one conversation, quick resolution Written grievance, HR/third-party investigation, documented resolution

Timeframe

Usually, from the same day to a few days Several days to weeks, depending on complexity

Who is involved

Employee and supervisor HR, managers, legal counsel, external investigators

Documentation

Optional but encouraged Required throughout the process

Outcome

Often resolved through dialogue Formal resolution, potential mediation, possible policy changes

Appeal option

Rarely used Standard part of the process

Building a Strong Workplace Grievance Policy

A well-written grievance policy prevents confusion and ensures consistency. At minimum, it should include:

  • A definition of grievances and how to submit them

  • Step-by-step procedures with expected timelines

  • Confidentiality and impartiality commitments

  • Anti-retaliation protections

  • Appeal options

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Employers must handle grievances with attention to legal requirements:

  • Anti-retaliation: Employees are protected under U.S. law from retaliation for raising grievances about discrimination, harassment, or safety concerns.

  • Equal Employment Opportunity Commission (EEOC): Discrimination claims may trigger EEOC involvement if not handled internally.

  • OSHA requirements: Workplace safety grievances may require formal compliance actions.

  • Documentation: Accurate, timely records are essential in case of audits or claims.

RELATED: Happy Employees, Thriving Business - PEOs Elevate Employee Satisfaction >>

Tips to Prevent Employee Grievances

While grievances can’t be eliminated entirely, proactive steps reduce their frequency:

  • Train employees on anti-harassment and anti-bullying practices.

  • Audit pay practices for equity and transparency.

  • Conduct regular safety and workplace condition checks.

  • Recognize and reward employees when workloads increase.

  • Foster open communication channels so employees feel comfortable raising concerns early.

Frequently Asked Questions (FAQ)

Q: What is the best way to handle employee grievances?

The best way is to follow a clear, step-by-step process that includes listening, documenting, investigating and resolving issues fairly. Employers should also provide an appeal process and ensure confidentiality.

Q: What is the difference between a complaint and a grievance?

A: A complaint is often informal and verbal. A grievance is a formal concern requiring documentation and adherence to company procedures.

Q: How long should the grievance process take?

Best practice is to acknowledge within a few business days, complete an investigation within 1-2 weeks for minor issues, and communicate outcomes promptly.

Q: Can employees be retaliated against for filing grievances?

No. Retaliation is illegal under U.S. law, and grievance policies should explicitly forbid it.

Q: What if an employee disagrees with the resolution?

An appeal process should be available, reviewed by a neutral party.

Q: How confidential is the grievance process?

Confidentiality must be maintained, with information shared only with individuals directly involved in resolution.

Partner with Axcet HR Solutions for Expert Guidance

Every employee grievance is an opportunity to strengthen culture and improve practices—but only if handled properly. Axcet HR Solutions, a certified PEO based in Kansas City, provides employee relations expertise and impartial support that business leaders need to resolve workplace grievances fairly, consistently, and legally.

Take the first step toward a healthier workplace. Schedule a consultation with Axcet HR Solutions today and leverage our team’s knowledge of how to handle employee grievances to build a stronger, more resilient culture.

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