A workplace complaint handled badly becomes a formal claim. A complaint handled well becomes a resolved issue. The difference is almost always process. Here is a step-by-step guide for small business owners on how to manage a complaint properly from the moment it arrives.
Complaints happen in every workplace. Someone raises a concern about how they were spoken to. A team member says they are being treated unfairly. An employee reports something they witnessed. How you respond in the first 24 hours sets the direction for everything that follows.
Most small business owners either dismiss complaints too quickly or freeze and do nothing. Both responses make things worse.
Types of workplace complaints
Before you respond, you need to understand what you are dealing with. Workplace complaints broadly fall into a few categories:
- Interpersonal conflict. Disagreements between team members, communication issues, personality clashes.
- Bullying or harassment allegations. More serious. Require a more structured response and may trigger formal investigation obligations.
- Sexual harassment allegations. Very serious. Employers now have a positive duty to prevent sexual harassment under the Sex Discrimination Act 1984 (Cth). (Australian Human Rights Commission — Positive Duty)
- Procedural grievances. Complaints about how a process was handled, pay discrepancies, or policy breaches.
The type of complaint determines how formal your response needs to be. Not every complaint requires a formal investigation, but every complaint requires a response.
Step by step: how to manage a workplace complaint
- Acknowledge it promptly. When someone raises a complaint, acknowledge it the same day. You do not need to have answers yet. You need to confirm you have heard them, you take it seriously, and you will follow up. Ignoring it or delaying acknowledgment signals that you do not care, which escalates things fast.
- Write it down. Document the complaint as it was raised, including date, time, who raised it, and what was said. Do not rely on memory. This note is the start of your record and it matters if things escalate later.
- Keep it confidential. The complaint and who made it should be kept confidential to those who need to know to resolve it. Gossiping or discussing it with unrelated staff members creates further problems and can expose you to additional claims.
- Assess the seriousness. Is this something that can be resolved with a direct conversation? Does it require a formal investigation? Does it involve an immediate safety concern that requires action before anything else? Get that assessment right before you decide how to proceed.
- Gather information. Speak to the person who made the complaint in more detail. If the complaint involves another person, speak to them separately. Be neutral. Listen more than you talk. Document everything.
- Make a decision and communicate it. Once you have the information, make a decision about what will happen. Communicate that decision to the relevant parties, explain your reasoning, and document it. If further action is required, such as a formal warning or a change in work arrangements, follow the appropriate process.
- Follow up. Check in with the person who made the complaint after a reasonable period to make sure the situation has resolved and has not recurred.
“The complaint you handle well is the one you never hear about again. The one you dismiss or mishandle is the one that ends up at the Fair Work Commission or the Australian Human Rights Commission six months later.”
When do I need external help?
Get HR support as soon as you are dealing with allegations of bullying, harassment, or sexual harassment. These require a more structured response and an independent process. If the complaint is about you as the business owner, you definitely need an external person to manage it. Jigsaw HR conducts independent workplace investigations and can manage complaint processes on your behalf.
What should my workplace policy say?
Every business should have a grievance procedure that tells employees how to raise a complaint, who to raise it with, what process will be followed, and what they can expect in terms of timeframes and confidentiality. It does not need to be long. It needs to be clear.
Got a workplace complaint you are not sure how to handle? Talk to Jigsaw HR today. We will tell you exactly what to do.