Penalties for poor complaints handling, and how to avoid them
Faced with a complaint (and even the best organisation gets them) an organisation not only has the potential cost of putting the situation right (such as compensating the ill-served), but risks big fines for poor complaints handling, for the lack of a good system itself. Homeserve were fined £30.6m by the FCA * earlier this year for poor complaints handling. Complaints handling at Npower is currently under investigation from Ofgem
Imagine crashing your car because you had bad tyres and instead of paying to repair it, the insurance company increases your premium and you get a court fine to boot, for having had bad tyres in the first place. However inconvenient or costly getting new tyres would have been, don’t they in hindsight look like a good buy?
So it is with proactive management of complaints.
Many Ombudsman schemes work hard at educating the bodies under their jurisdiction about good complaint handling practices. If good processes can be demonstrated, if good complaint handling practices are in place, then organisations need not see the industry regulator as the enemy.
Control, Compliance, Cost reduction, Convenience
Think of a complaints handling system in the light of this. A system like Workpro actively manages complaints, it doesn’t just record them. Workflow and workload management tools guide staff, and MI tools (management information) aid decision making helping organisations to improve:
- Control in terms of tracking and monitoring complaints
- Compliance with process, regulations and legislation
- Cost reduction through efficiency and productivity gains
- Convenience, with quicker access to information and resolution for all stakeholders.
For a white paper on how to manage, not just record complaints click here .
Comment by Ken Naismith, CAS Ltd CEOcomments powered by Disqus