What: Traditional employee relations approaches focused solely on compliance are failing to prevent issues, as HR Acuity reports surging case volumes across categories, requiring a shift toward culture-first investigation strategies.

Why it is important: Research shows that inclusive workplaces achieve 50% reduction in turnover risk and 56% increase in performance, making cultural assessment during ER cases crucial for business success.

The traditional approach to employee relations (ER) cases, which often prioritises compliance and quick resolution over cultural understanding, is proving inadequate in today's workplace. HR teams are facing increased case volumes while lacking the tools and framework to address root causes effectively. Common pitfalls include limited consideration of cultural factors, disconnected departmental data, and missed opportunities for organisational learning. A more effective approach combines standard investigations with cultural assessments, gathering anonymous employee feedback to understand systemic issues. This dual-track strategy enables organisations to both resolve immediate concerns and prevent future incidents. By integrating culture assessments into ER workflows, companies can reduce repeat incidents, ensure compliance, build transparency, and create stronger psychological safety. Most importantly, only 20% of organisations currently gather employee feedback following investigations, representing a significant opportunity for improvement.

IADS Notes: Recent market evidence underscores the urgency of cultural transformation in employee relations. In March, research revealed that 71% of consumers expect personalised interactions, a standard that should extend to employee experience. February data showed that 50% of Gen Z professionals reject traditional management roles, viewing them as high-stress and low-reward. The impact of poor cultural alignment is significant: December findings showed 51% of luxury retail employees planning to leave their positions, with 40% citing lack of empowerment as a key issue. However, success stories demonstrate the potential of culture-first approaches: Neiman Marcus's "Magic Makers" program achieved a 34-point increase in engagement, while companies implementing systematic cultural development achieved 21% higher returns.

A culture-first approach to employee relations crises