How can you avoid the risks of using arbitration to resolve conflicts?

1 Know the pros and cons of arbitration

Before choosing arbitration as a conflict resolution method, it is important to consider the advantages and disadvantages of this option. Arbitration can save time and money by avoiding lengthy and costly court proceedings, and it can also preserve the relationship between the parties by avoiding adversarial and public litigation. Additionally, it offers more flexibility and control over the process and the outcome by allowing the parties to choose the arbitrator, the rules, and the criteria for the decision. The arbitrator also has specialized knowledge and experience in the relevant field, as well as impartiality and independence. However, arbitration can limit the rights and remedies of the parties by waiving their access to the court system and appeal or review processes. Furthermore, it reduces transparency and accountability of decisions by keeping them confidential and not subject to legal scrutiny or standards. It may also create power imbalances and unfairness if one party has more resources, influence, or familiarity with the arbitrator or process. Finally, it may generate dissatisfaction since it imposes a decision that may not reflect the interests, needs, or preferences of the parties.

2 Choose arbitration voluntarily and wisely

One of the most important factors to consider when using arbitration is whether it is voluntary or mandatory. Voluntary arbitration means that the parties agree to submit their dispute to arbitration after it arises, while mandatory arbitration means that the parties are required to do so by a contract, a policy, or a law. As a supervisor, you should avoid imposing arbitration on your employees or co-workers without their consent or knowledge, as this can violate their rights, damage their trust, and increase their resistance. Instead, you should inform them of the option of arbitration and its implications, and let them decide whether they want to use it or not. You should also respect their choice and not pressure them to accept or reject arbitration.

3 Prepare for arbitration thoroughly and professionally

Before entering arbitration, it is important for supervisors to prepare effectively and efficiently. Arbitration is a serious and formal process that requires careful planning. It is necessary to review the arbitration agreement and the rules that govern the process and outcome. Additionally, selecting a qualified and reputable arbitrator who has the right skills, knowledge, and experience for your case is essential. Evidence, documents, and witnesses should be gathered to support your position and refute the other party's claims. Consulting with a lawyer or an expert on the legal and technical aspects of your case is highly recommended to ensure you are properly represented during arbitration. Finally, communication with the other party and the arbitrator should always be respectful and cooperative in order to resolve any procedural or substantive issues before the hearing.

4 Participate in arbitration actively and constructively

When participating in arbitration, it's important to be productive and positive. It is an active and interactive process that requires your involvement and contribution. As a supervisor, you should present your case clearly and convincingly, using facts, logic, and persuasion to support your arguments. Listen to the other party's case attentively and critically, asking questions, clarifications, and challenges to test their validity and reliability. Respond to the arbitrator's questions promptly and politely, providing accurate and complete information. Negotiate with the other party and the arbitrator in a collaborative manner, exploring options that can satisfy both sides. Finally, accept the arbitrator's decision gracefully and respectfully, complying with its terms and honoring your obligations.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?