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Handling Employee Complaints Do you know the difference between a valid grievance and just plain whining? Either way, you need to know how to handle it.

By Rod Walsh

Opinions expressed by Entrepreneur contributors are their own.

All of us in business have a pretty good feel for handlingcustomer complaints--we tend to take most complaints serious, andwe look for solutions. But when an employee has a complaint, wefreeze up. Some employers even develop negative thoughts about thecomplaining employee: How could he be so ungrateful? Doesn'tshe realize everything I try to do for her?

Well, it's time to step back and think of your employees ascustomers--because in a very real sense, they are. Just becausethey're employees is no reason to think any less of theircomplaints than you would a grievance from one of your bestcustomers.

Most employee complaints fall into one of three categories:complaints about other employees, complaints about the quality ofthe product or service the company provides, or complaints abouttheir own work situation--pay, hours and respect, to name afew.

Of course, the first one is the most difficult to deal with.Because someone other than the complaining employee is involved,you have to approach this situation in a serious and professionalmanner. You need to carefully listen so you can determine exactlywhat the grievance is. And you must be honest with theemployee--say that you're very concerned about the issue he orshe is bringing to your attention and that you're going toinvestigate it by talking with the other party and other employeeswho might have insight. It's critical that the employee knowsyou'll pursue the issue, but that you're going to get allsides of the story. Then, do just that. Your findings willdetermine the action you should take, if any, and you must informthe employee as to your decision and how it was reached. Make afinal offer to listen to the complaint again. Do so and thenimplement your decision and move on. Don't allow the voicedcomplaint to fester.

Some business owners are fortunate to have employees who careenough about the quality of the company's products or servicesthat they'll bring problems to the attention of supervisors andmanagers. Whether you have a suggestion box, an open door policy orsome other method that encourages employees to bring quality issuesto you, be certain that you or someone you trust explore each one.During the process, keep the employee informed at every step. Andwhether you find the complaint to be valid or not, remind youremployee how much you appreciate the effort that's been made.Should the complaint be confirmed, reward the employee in someway--it can be as simple as a heap of praise, tickets to a popularevent or cash. But most important, thank the employee in front ofhis or her co-workers and in the company newsletter or e-mail. Lethim know how valuable the information was in fixing a problem, anduse the occasion to remind all employees that quality comes aheadof all else and that you welcome input from each of them.

When the complaint involves an employee's work situation,it's usually quite easy to resolve--even if it involves salary.Let me rephrase that: especially if it involves salary. When itcomes to employee pay rates, every company should have two things:a payroll grid that lists the various jobs and their pay ranges(with ranges based on such things as regular employee evaluationsand tenure) and a way to deviate from the grid for trulyoutstanding performance. You need to keep from hiding behind aninflexible pay structure. Complaints that don't involve wagesneed to be handled similarly to the way you would handle anemployee complaining about a co-worker--gather the facts, reportyour findings to the employee, implement your decision and moveon.

In the end, when it comes to any employee complaint, don'tleave the employee with the impression that you take it lightly.But be sure to make a silent evaluation as to its importance andseriousness so you'll know how much time should be devoted tothe complaint. And if you remember to treat employee complaints asyou treat customer complaints, most of the time you'll make theright decision.

Learn More

If employees just aren't getting along, these fourtips will help you manage the conflict.

Want to minimize turnover? Learn how to motivate and retain yourbest and brightest in Attracting and Rewarding OutstandingEmployees by David Rye.


Rod Walsh and Dan Carrison are the founding partners ofSemper Fi Consulting in Sherman Oaks, California and the authorsof Semper Fi: Business Leadership the Marine Corps Way.

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