Economic mediation

Mediation can help companies save money, energy and time when they choose this method to deal with conflicts, but few companies in Hungary are taking advantage of this opportunity: only six percent of the fifteen thousand cases a year are resolved using alternative conflict management methods.

What are the benefits of economic mediation?

  • FasterA mediation process, like litigation, can be conducted at a time that suits the parties' schedules.
  • Cheaperthan litigation, there are no fees and, thanks to the faster process, the fees for the expert (mediator) involved are lower on a time basis than for a legal expert.
  •  If mediation fails, the parties still have the option of going to court.
  • In mediation, the parties themselves can work out solutions that are acceptable to them, such as a higher rate of compliance with the agreementas if a third party were dictating how they should act.
  • In contrast to the court route, mediation involves human factormediation can take into account not only economic and financial issues, but also the need to maintain a good working relationship or to end the relationship fairly - mediation can also be a humane way of dealing with redundancies and redundancies. This is the story of a Hungarian HR professional from an international transport company who was so attracted to the method that she took part in mediator training at the Partners Hungary Foundation.

 

"It's very stressful, emotionally, when we have to let go of staff. It's a very out-of-control experience for the employee, and we started to counteract that through mediation, where both sides could talk about how they were experiencing the situation and how to make it easier: financially and humanly. The workers were surprised to learn that this was a difficult situation for us too, and we offered flexibility on the terms of the exit. This way, we can end a difficult phase with dignity and less tension, and when we meet on the street, we don't have to be upset."

In which cases should you use economic mediation?

  • If there is any dispute about the division and performance of tasks
  • In the event of structural changes or reorganisations within the company, where friction is likely to occur
  • In case of derogations from the contract
  • In case of damages and compensation
  • Personal or professional conflicts between colleagues or groups
  • In the event of redundancies, for a fair closure
  • If you need a faster, more efficient and cheaper solution than litigation

 

How does economic mediation work?

  1. Mediation can start if all parties concerned want it to. If one of the parties approaches one of our mediators, we will listen to the situation in which they are seeking our help and provide information about the process. However, volunteering is an important condition for participating in mediation, so we ask that other parties involved contact us by email or phone. This way, we can ensure a balance of power from the beginning of the process: everyone has the opportunity to talk briefly about the conflict and we explain to everyone how the mediation process works, clarify the signing rights and the mediation fee.
  2. Once an appointment has been made, we will start the process together or separately, depending on the information we have in advance. A mediation session lasts 3 hours and the mediation process itself may take several sessions, as it is important that the parties can discuss all the details of the conflict situation. The aim is that, even if we start the meeting separately, all parties involved should talk at the same table as soon as possible so that they can find real joint solutions. Even if all is not lost, if we can only negotiate separately with the parties until the end of the process, we facilitate communication through so-called "walking mediation". We look for the needs and interests behind the complaints and shortcomings that arise during mediation sessions, and use the tools of constructive communication to help the parties to focus on the future, whether it is about continuing the work together or ending the working relationship, rather than blaming and rehashing past grievances.
  3. If an agreement is reached during the process, it will be recorded in writing.
  4. Some time after the process is completed, the mediator will call the parties to ask if further help is needed.  

Experience has shown that 85% of mediation agreements are respected by the parties. The benefits of economic and workplace mediation are 24.hu and. Portfolio.hu has also written. 

 

 

 

 

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