The Benefits of Business Mediation
If you have a dispute or a conflict in your business then you have a number of options. You can try and resolve the situation internally, and if you can do this successfully then this is the best option.
If you cannot reach an agreement internally then you need to look for outside help. There is the litigation system but this has a number of drawbacks, the main ones being time, cost and the imposing of solutions which rarely provide any benefit to the workplace harmony – often having the opposite effect.
An alternative is to use business mediation. Here you will hire a competent mediator who is a neutral third party. They will bring the two affected parties in the dispute together, and facilitate open discussions that will lead to an outcome that both parties will be satisfied with as they were fully involved.
Here are the major benefits of using business mediation to resolve your workplace conflicts:
There is No Court Involvement
It is highly unlikely that mediation customers will end up in court to resolve their conflicts. When the conflict has been resolved using the mediation process, the mediator will prepare documentation which includes details of the final agreements. These do not have to end up in the courts but there are some exceptions to this.
If your agreement has to go to court then it will be reviewed by a judge and then signed off. In some states you may be required to attend court for a brief period to confirm with the court the nature of the agreement and that the conflict has been resolved. This is a lot better than handing over your entire conflict to the legal system.
Agreements Happen Faster
Nobody can accurately predict how long a workplace dispute can take to be resolved using the legal system. A workplace dispute could take 6 months or it could roll on for years. There are a lot of resource issues in courts these days, and cases can suffer delays very easily.
When you opt for business mediation then you decide when and how fast the mediation sessions occur. This means that you can get your dispute resolved a lot more quickly than being at the mercy of the court system. On average, the settlement of most business conflicts with mediation happens in less than two months.
Agreements Tend to Work Better Through Mediation
As all parties to the dispute are involved in a business mediation there is far more chance that the final agreement will be workable and acceptable to all. A mediator’s job is to facilitate frank discussion and explore all opportunities for a settlement.
If all parties have been involved in the agreement then they will feel that they have had their say. Implementing the solution back in the workplace will be a lot smoother and easier and both parties are likely to abide by the changes. A court may impose a solution that is not workable and that neither party is happy with.
Business Mediation Can Make Relationships Stronger
A lot of conflicts that end up in business mediation are between management and employees in the same organization. The relationship between the two parties is critical for the future survival and growth of the company, and neither party will want to have a solution imposed upon them that they haven’t been involved in.
Business mediation brings the two parties together. Personality clashes are set aside and discussions to find real solutions to problems take place in a positive manner. This is so different from litigation where neither party is involved in the final decision.
You must do everything that you can to preserve and build upon the positive relationships that exist between management and staff. Mediation will help to do this as it will get the parties talking to each other and coming up with jointly agreed solutions.
Frequently Asked Questions / FAQS
What is business mediation?
Business mediation occurs when business partners or contractual parties want to prevent conflict, develop a conflict resolution process, or want the help of an independent, neutral, 3rd person to help them resolve their conflicts efficiently and cost-effectively?
Is business mediation expensive?
Business mediation is much cheaper than litigation. There are no court hearings, no litigation processes, and no judge.
Is business mediation fast?
Compared to litigation, business mediation is quick. This is because the parties do not have to schedule court hearings, or have attorneys prepare court documents, motions, and memoranda. This can be helpful to revenue goals in business.
Is business mediation legally binding?
Yes, but only after the parties put their agreement in writing.
Does business mediation require a judge?
No! There is no litigation and therefore, no judge.
Is business mediation expensive?
Business mediation is much cheaper than litigation because it is a condensed, efficient, and out of court process.
Do the parties have lawyers present in business mediation?
They can but they are usually not necessary. Mediation is thorough.
Is the business mediator an attorney?
The business mediator does not have to be an attorney, but some are. At BCS Mediation, we will always have at least one attorney working on your case.
Does business mediation happen in person?
Business mediation can usually occur by Zoom video but if the parties prefer, the process can be in person depending upon the scope and length.
Does the business mediator do any research?
If necessary, the business mediator’s team will do required research that will help the parties.