Costs

The largest and most commonly mentioned costs were psychological. Both employees and employers found ERPs to be stressful, unpleasant and even distressing. Employees spoke of depression, anxiety and low self-esteem. Others commented on the amount of time and energy that fighting the ERPs cost them. Some said that they had reduced social contacts and energy for their families.

It was probably the most debilitating three years of my life... You'd get one letter and then you'd spend weeks analysing it, going over it ... My young fella he went from about form one to form three. ... And we lost those years with him. (Employee's husband)

The emotional effects themselves affected the employees' sleep and general health, in some cases exacerbating pre-existing conditions such as high blood pressure. This impact on employee health was reflected in increased use of sick leave entitlements during the ERP.

Employees felt their job and career had suffered as a result of the ERP. Some lost a job they wanted to do and got satisfaction from. Some noted the difficulties of not being able to use their employer as a referee for future job applications. During the ERP, employees also had reduced productivity at work because of the stress of the ERP, time spent on it during working hours, and/or personality conflict with colleagues.

During an ERP, employers, management and other employees, even if they were not directly involved in the ERP, also felt stressed from the unfolding ERP and sometimes from having to give evidence. Both employers and employees were also worried about the impacts of ERPs upon their reputations and the morale of those around them.

ERPs affected the stress levels, health, financial situation and productivity of both, employers and employees, and led to consequences for the families of both. All the interviewees indicated that the process had been unpleasant to be involved in, even extremely distressing. Most of them wanted the ERP to be resolved so they could put it behind them and carry on with their lives.

The extent and magnitude of the social costs varied a lot. To some extent, but not always, the severity of the consequences depended on:

• The length of time for which the case lingered. This in turn depended on the extent to which the case had escalated, and the length the parties were prepared to go resolve the case.
• Personal circumstances of the employee and employer. If the involved parties had family, often the party resolved the case just to be finished with it regardless of the outcome, because of the effects on their family. In contrast, an employee with no immediate family and in secure financial circumstances could pursue his case until it was resolved to his satisfaction.

Benefits

Some employees had discovered an inner strength in going through the case and thought they had come out a tougher person.

But ... I believed in what I was doing - believed that I was doing the right thing and that gave me strength to be able to carry on and work through it. (Employee)

Some employees had looked back on the job they had left and realised that they actually did not want to continue in it, so they were pleased to have left it. Following an ERP, a few employees had gone on to get better jobs. In addition, some others mentioned specific, one off, benefits, such as improved problem solving skills.

Where an employee left as a result of an ERP being resolved, remaining employees often experienced a better work atmosphere and a more functional team. This outcome was usually a result of the ERP being resolved, rather than the ERP itself; however it was a benefit. One employer also received positive publicity for pursuing a case against a workplace bully.

Following an ERP, some employers introduced better, more consistent, up-to-date and often formal procedures or processes such as human resources management, recruitment, and employment agreements. One employer now attended employment information/training seminars to ensure they were fully aware of their employment obligations. While instituting such improvements would incur a financial and time cost at the time, their payoffs should outweigh the costs in the long run.

Generally, both employers and employees in the case studies indicated that the costs, both financial and personal, far outweighed the benefits. Both employees and employers could readily list the costs of the ERP, but most identified few, if any, real benefits. Even employees who received relatively large financial settlements indicated that this did not make up for the costs they had incurred as a result of being involved in an ERP. Employers who noticed improvements in productivity or work atmosphere following the departure of a 'problem' employee had incurred reduced productivity and an unhealthy work atmosphere with reduced morale during the ERP.