Top 5 Grievances We See in Small Businesses (and How to Prevent Them)

When you run a small business, every team member counts, which means that when conflict arises, it can quickly feel personal, disruptive, and even damaging. At Swan HR, we’ve supported countless SMEs through the Grievance Process, and we’ve noticed a few common patterns.

In this blog, we’ll walk you through the top five types of grievances we regularly see in small businesses — and crucially, how to prevent them before they escalate.

1. Favouritism and Unequal Treatment

This one crops up again and again, especially in smaller teams where roles can be less formal and relationships more familiar. Whether it’s one employee feeling like their colleague always gets the best shifts, or a perception that someone gets away with breaking the rules, feelings of unfairness can quickly turn into formal complaints.

The problem: The absence of structure can lead to inconsistencies in how staff are managed, disciplined, or rewarded.

Prevention tip: Introduce a clear, fair framework for rotas, rewards, and performance feedback. Make decisions visible and explain the rationale behind them. Line manager training can also help reduce unconscious bias, or simply make managers aware of how they come across.

2. Poor Communication

Misunderstandings between team members or between staff and management are one of the leading causes of grievance issues in small businesses. When people don’t feel heard, informed, or involved, tensions build.

The problem: Many SMEs don’t have formal communication channels, and in the rush of daily business, messages get missed or assumptions are made.

Prevention tip: Regular check-ins, open-door policies, and even a short weekly briefing can make a big difference. Encourage feedback and let staff know they can raise concerns before they become complaints. Consistent communication builds trust.

3. Bullying or Harassment

These are serious allegations — and they can happen in businesses of any size. In small companies, the lack of a dedicated HR team can mean inappropriate behaviour is overlooked or minimised as “just their way.”

The problem: Employees may feel unsafe, unsupported, or unsure who to turn to.

Prevention tip: Make your stance clear with a zero-tolerance policy on bullying and harassment. Even if you only have a small team, an anti-harassment policy should be in place. Provide staff with a confidential way to raise concerns — ideally with an external HR contact or helpline if possible.

4. Workload and Role Creep

When small businesses grow quickly or operate on tight margins, it’s not uncommon for roles to evolve. But if one employee is suddenly picking up more than their fair share — or if expectations change without proper discussion — frustration builds.

The problem: Overworked employees may feel taken advantage of, especially if they’re not being recognised or compensated for the extra effort.

Prevention tip: Regularly review job roles and workloads. Be transparent about why responsibilities are shifting — and offer support or training where needed. If you can’t offer a raise, look at time-off-in-lieu or other benefits to show appreciation.

5. Lack of Clarity Around Policies or Processes

A surprising number of grievances arise from confusion around holiday booking, sick pay, lateness, or performance expectations. Without clear guidance, it’s easy for misunderstandings to escalate into formal complaints.

The problem: Small businesses often operate without a staff handbook or consistent procedures.

Prevention tip: Even a short, easy-to-read employee guide can make a world of difference. Outline your key policies, what employees can expect, and how you’ll support them. It shows professionalism and helps protect you legally, too.

A Little Prevention Goes a Long Way

No business is immune to conflict, but having a clear, fair structure in place massively reduces the risk of a situation escalating into a formal grievance. Often, employees simply want to be heard, treated fairly, and kept in the loop.

If you’re not sure where to start, Swan HR can help.

Need Help Putting the Right HR Protections in Place?

Whether you need support drafting grievance policies, training managers, or handling an ongoing issue, Swan HR is here to make the process easier. We’ll help you create a workplace culture that prevents conflict and deals with it properly when it happens.

📞 Get in touch today to arrange a confidential consultation or grievance policy review.