Flawed workplace disciplinary hearings cost UK economy £28.5bn annually, say public health experts

Flawed disciplinary investigations in UK workplaces are costing the economy £28.5 billion each year, according to a report released by the UK Faculty of Public Health (FPH) on Monday. These poorly handled procedures not only harm the individuals involved but also negatively impact their colleagues and the organizations that employ them.

Financial Impact of Poor Disciplinary Processes

UK employers conduct approximately 1.7 million disciplinary cases annually, resulting in significant financial losses primarily due to dismissals and resignations. The FPH highlights that these investigations should be viewed as a public health threat, akin to smoking or poor diet.

Prof Tracy Daszkiewicz, president of the FPH, emphasized the need for employers, ministers, and unions to discuss ways to alleviate the harm caused by excessive and poorly conducted disciplinary investigations. The FPH stated, “This is more than an organizational concern: it is a UK workforce issue with clear public health implications.”

Consequences for Employee Wellbeing

The report outlines that the consequences of flawed disciplinary processes ripple outward, leading to individual harm, loss of trust in systems, avoidable sickness absence, and diminished staff morale. This population-level harm affects not just the individuals involved but also the overall workplace environment.

Daszkiewicz further noted, “Disciplinary processes are often applied in ways that prioritize procedure over people, failing to account for the environmental, psychological, and organizational dimensions of harm.”

Case Study: Tragic Outcome from Disciplinary Procedures

The report references the tragic case of Chloe Moffat, a personal assistant at the Treasury, who tragically took her own life following distressing disciplinary proceedings based on an anonymous complaint. Moffat was denied support during her disciplinary meeting and was unaware that her job was not at risk.

The Treasury is now reforming its disciplinary procedures following this incident. The FPH advocates for treating disciplinary investigations as a last resort, guided by the principle of “avoidable employee harm.” This approach has reportedly led to a 71% reduction in investigations at Aneurin Bevan University health board, saving the organization over £700,000 annually.

Niall Mackenzie, chief executive of Acas, stated, “[The FPH report] reflects our own good practice advice on how early informal workplace resolution is less costly and stressful for employers and workers.”

Overall, the FPH report highlights an urgent need for change in how disciplinary matters are handled to protect employee wellbeing and enhance workplace environments.