How to Handle Employee Complaints When They Involve One of the Partners/owners
In a small business with multiple owners or partners at the helm, the lines between leadership, operations, and employee relationships often blur. While partners strive to foster trust and collaboration, no one is immune to mistakes—or complaints.
When a complaint isn’t about a coworker or policy but about one of the partners themselves, things can get complicated fast. Employees may feel hesitant to speak up, and the other partner(s) may struggle to balance loyalty with fairness. How leadership handles these situations directly impacts company culture, trust, and long-term success.
Here’s how to navigate these delicate matters with professionalism, empathy, and integrity—while maintaining your team’s confidence in leadership.
Why Employee Complaints About Partners Matter
A complaint about a business partner is more than just a grievance—it’s a test of your company’s values and leadership. Mishandling it can lead to:
Loss of Trust – Employees may hesitate to report future concerns.
Decreased Morale – Unresolved issues can create a toxic work environment.
Reputational Risk – Complaints that are ignored or mishandled may lead to gossip, turnover, or even legal consequences.
Addressing concerns promptly, fairly, and transparently helps reinforce a positive workplace culture and demonstrates that leadership is held to the same standards as the rest of the team.
Encouraging a Safe Reporting Environment
Employees may hesitate to raise concerns about a business partner for fear of retaliation or being seen as disloyal. To create a culture of openness:
Establish Clear Reporting Channels – Employees should know exactly where and how to voice concerns, including when leadership is involved.
Provide Confidential Options – Offer access to a neutral third party, such as an HR consultant or an external hotline, for sensitive complaints.
Reassure Against Retaliation – Make it clear that speaking up won’t jeopardize an employee’s role or standing within the company.
What to say:
"We value open communication and want every team member to feel heard, even when concerns involve leadership. Your feedback is critical to our growth and success."
Separating Roles from Relationships
When a complaint involves a business partner, it’s critical to separate personal relationships from professional responsibilities. Other partners must approach the situation with impartiality and a commitment to fairness.
Steps to Take:
Acknowledge the Complaint – Let the employee know their concern is taken seriously.
Investigate Neutrally – Avoid defending or excusing your partner’s actions before reviewing all perspectives.
Seek Outside Input – If impartiality is a challenge, consider engaging an HR professional or mediator.
What Not to Do:
Don’t Dismiss Concerns – Brushing off complaints as misunderstandings damages credibility.
Don’t Let Bias Lead – Resist the instinct to defend a partner before understanding the full situation.
Conducting a Fair Investigation
Handling complaints about leadership requires the same diligence as any other workplace issue. The goal is to uncover facts while respecting all parties involved.
How to Conduct a Fair Investigation:
Gather Facts – Speak with the employee, the partner involved, and any relevant witnesses. Focus on behaviors and incidents rather than assumptions or hearsay.
Maintain Confidentiality – Share details only with those who need to know to protect privacy.
Document Everything – Keep thorough records of conversations, findings, and actions taken.
What to say to employees:
"We’ve begun reviewing your concern. To ensure a fair process, we’ll be gathering input from all involved. We’ll keep this as confidential as possible."
Addressing the Root Cause
Once the facts are clear, it’s time to take action. The resolution should directly address the underlying issue while reinforcing leadership accountability.
Potential Resolutions:
Coaching or Training – If the issue stems from communication or leadership style, additional training may be appropriate.
Policy Updates – If gaps in policies contributed to the issue, adjust them to prevent recurrence.
Corrective Action – If the partner’s behavior violated company values or policies, take necessary steps just as you would with any other employee.
What to say to employees:
"Thank you for bringing this to our attention. Here’s what we’ve done to address the situation and ensure it doesn’t happen again."
Balancing Transparency with Confidentiality
Employees want assurance that leadership takes complaints seriously, but they don’t need every detail of the resolution.
What to Share:
✔ Acknowledgment of the issue.
✔ Steps taken to investigate and resolve it.
✔ Any resulting policy updates or training.
What to Keep Private:
❌ Personal details about those involved.
❌ Specific disciplinary actions unless required by law or policy.
Rebuilding Trust and Confidence
Even after a complaint is resolved, leadership must reinforce accountability and a culture of trust.
How to Rebuild Trust:
Follow Through – Ensure promised actions are implemented.
Encourage Ongoing Feedback – Keep communication open for future concerns.
Lead by Example – Partners should model the professionalism and accountability they expect from employees.
The HR Perspective: Why This Matters
Handling complaints about leadership is one of the most sensitive challenges a business can face. These situations test your company’s values, processes, and leadership integrity. Addressing them with fairness and professionalism not only resolves the immediate concern but also strengthens employee confidence in your leadership.
If you’re facing a difficult complaint or want to build a culture of trust and accountability, Peopleish can help. Let’s create a workplace where employees feel heard, respected, and confident in their leadership.
