By the Numbers: Outsourced Ombuds and Mediation Services

By partnering with ADRx3, your organization gains much more than “another channel” — you gain a strategic asset for risk mitigation, culture enhancement and cost containment — all important elements of organizational excellence. Let us know if we can help build the business case. The information below may provide a good starting point.

The Problem: Cost & Culture Erosion

  • Workplace conflict, miscommunication and unresolved interpersonal issues are not just “HR headaches” — they carry a very real cost. According to a CPP global industry study, unresolved conflict in U.S. workplaces is estimated at US $359 billion per year in lost productivity. (1)

  • Executives estimate more than US $144,000 per day is lost in their organizations due to interpersonal conflict, mis-communication, decision-making breakdowns and similar issues (2)

  • Formal grievance and dispute processes are expensive: one Canadian study found a single grievance file could cost up to CA $40,000 from first level to final adjudication. (3)

  • Employee disengagement is linked to reduced productivity; companies with highly engaged employees are shown to have 10-15% higher profits. (4)

  • Every dollar invested in effective conflict management can yield an estimated $22 in savings/cost‐avoidance. (5)

  • By resolving issues before they become formal grievances or lawsuits, organizations avoid high legal, reputational, productivity and turnover costs.

  • Improved civility, engagement and culture translate into measurable performance: when employees feel heard and valued, they’re more likely to stay, perform and contribute to innovation.

How Ombuds Services Help

  • Provide a confidential, informal safe space for employees, managers and other stakeholders to raise concerns without fear of retaliation, promoting early resolution of issues.

  • Detect and address subtle issues (e.g., bias, unfairness, low-level conflict) that often go unreported yet still erode morale.

  • Serve as an early-warning system for emerging systemic trends — enabling leadership to act proactively rather than reactively.

  • Support compliance, risk-management and reputational protection by surfacing issues before they escalate to formal disputes or litigation.

  • Strengthen culture, engagement, trust and retention by showing that the organization is invested in fairness, voice and wellbeing.

How Mediation Services Help

  • Provide a neutral, expert resource to facilitate productive dialogue and resolve conflicts impartially, free from internal bias or influence.

  • Offer structured, solution-focused mediation that helps employees and leaders move past tension, rebuild trust, and find common ground.

  • Bring specialized expertise in conflict dynamics, communication, and workplace relationships to guide fair, effective resolutions.

  • Reduce legal, reputational, and operational risk by addressing disputes early — before they escalate into formal complaints or litigation.

  • Save time and resources by resolving issues efficiently, allowing HR and leadership to focus on strategic priorities.

  • Reinforce a culture of respect, accountability, and collaboration by demonstrating that the organization values open communication and constructive problem-solving.

  • Provide leadership with insights into recurring patterns or systemic challenges, enabling proactive improvements to policies and culture.

Sources:

  1. CPP Global (2008). “Workplace Conflict and How Businesses Can Harness It to Thrive”

  2. International Ombuds Association, Ombuds Toolkit https://www.ombudsassociation.org/assets/docs/docs_2022/IOA%20External%20Audience%20Toolkit%20.pdf citing . Harvard Business Review, “Putting a Price on People Problems at Work,” by Tanya Menon and Leigh Thompson, August 23, 2016

  3. https://justice.canada.ca/eng/rp-pr/cp-pm/eval/rep-rap/2024/oirso-bosri/p4.html

  4. International Ombuds Association, Ombuds Toolkit https://ioa.memberclicks.net/assets/Ombuds_Tool_kit/2022_IOA_Ombuds_Toolkit_Ombuds_Overview.pdf citing MIT Sloan Management Review: Measuring the Benefits of Employee Engagement, Summer 2015, page 5

  5. International Ombuds Association, Ombuds Toolkit https://ioa.memberclicks.net/assets/Ombuds_Tool_kit/2022_IOA_Ombuds_Toolkit_Ombuds_Overview.pdf citing CPP Global Human Capital Report, July 2008, pg. 3. Based on average hourly earnings of $17.95, seasonally adjusted, non-farm workers. Bureau of Labor Statistics, May 2008.