Organisational consequences including morale, absence, and retention

Covered in this video are the wide-ranging organisational consequences that arise when grievances are not handled effectively, addressed directly in the context of AC 3.3 of 5HR01 – Employment relationship management. The video examines how unresolved employee frustration accumulates over time and connects that accumulation to specific outcomes: declining morale, sickness absence, the withdrawal of goodwill and discretionary effort, resistance to organisational change, and ultimately resignation. Rather than treating these as isolated HR concerns, the video frames them as interconnected consequences that carry measurable cost implications for the organisation.

The video gives particular attention to the relationship between grievance handling and employee morale, exploring how perceptions of fairness influence discretionary effort, creativity, collaboration and the psychological safety that underpins speaking up. It also addresses the documented link between unresolved workplace conflict and sickness absence, examining both direct absence costs and the indirect impact of reduced team capacity. The role of goodwill as a form of discretionary contribution — and the ways in which poor grievance handling causes employees to withdraw it quietly rather than resign immediately — is a distinct focus, as is the mechanism by which unresolved grievances translate into cynicism and active or passive obstruction during periods of organisational change.

On retention, the video covers the costs associated with avoidable turnover, including recruitment, training and the loss of institutional knowledge, and draws on the patterns that exit interviews reveal around management relationships and perceived unfairness as drivers of resignation. It also examines the ripple effect on remaining colleagues when valued employees leave following unaddressed concerns, showing how the way leavers are treated shapes the conclusions that staying employees draw about the organisation's commitment to fairness and internal resolution.