Four frequently encountered kinds of business disputes are partnership, employment, breach of contract and business to business, with the first one being the most common. Companies involved in such arguments may choose legal routes such as litigation. However, before going down this path, it may be prudent to pursue a more informal proceeding.
Mediation is a process where a neutral third party assists in finding a conflict resolution. The mediator does this through the use of an assortment of tactics and is responsible for maintaining lines of open communication and managing interaction between the disagreeing groups. There are many benefits associated with this option.
1. There is less cost involved
This procedure is considerably less expensive than a lawsuit. This is due to two reasons. The first is that it is often speedier, meaning there are fewer hourly fees owed to professionals like lawyers. The second is that there are no court fees to pay.
2. There is more control
Control belongs firmly in the hands of the interested participants rather than those of a judge. Nobody is able to impose a settlement on them. They may draw out the dispute until they reach the agreement they prefer and decide what concessions they are willing to make.
3. There is greater potential for a positive outcome
Usually, this process is better at keeping existing relationships intact. It allows companies to retain their pride while negotiating. Mediators are impartial facilitators trained to handle tension and make the flow of conversation smoother. They also want to ensure both sides receive a fair deal. America’s Small Business Development Center Network, or SBDC, states that the estimated rate of success for this resolution method is high, about 85%.
Mediation is a confidential, voluntary and convenient procedure. It generally ends in a beneficial outcome for both parties. Note that it is a completely separate undertaking from arbitration, though the two do share some similarities.