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Providing HR support and advice to SME across the UK since 2006
CASE STUDY
We have various clients for whom we have had to exit their most senior member of the team, the CEO or the Managing Director appointed to run the company as the Owner of the business has stepped away to pursue other ventures, or who has multiple companies as an investor, with no intention of running the organisation.
The Challenge
We received word of a written grievance detailed in a resignation letter from the MD’s personal assistant in relation to the way they had been spoken to by their direct Manager, others also raised concerns verbally to another senior manager within the business.
At the same time the IT department had flagged that pornographic material had been downloaded onto the server, following the investigation we discovered icons from various porn sites on the MD’s work laptop.
The issues were raised via an internal manager to the business owner who in turn asked us to intervene, to investigate fully and chair the disciplinary process.
The Solution
We initially suspended the MD and commenced a full and detailed investigation. Working closely with the IT and Finance department, and holding investigation interviews with the various team members who had raised concerns of controlling behaviour, inappropriate derogatory comments that were racist and sexist, but that were allegedly made in jest.
• We sent an appropriately worded letter to the MD, confirming his suspension, being careful not to imply that he was being seen as guilty prior to the investigation being complete.
• A full investigation ensued, we reviewed various documents, being mindful that until the investigation and potential disciplinary process was complete, that we could not assume the MD was guilty of the accusations.
• The business asked us to confirm the resignation, but on closer inspection of the resignation letter, we saw that there was a bigger issue to be addressed in relation to the grievance.
• A full disciplinary process, that resulted in an appeal to the decision to dismiss for gross misconduct were all conducted by the various consultants employed by HRCentral.
• We can arrange, write letters for, and hold any employee relations meetings including disciplinary investigations and any appeal hearings. We write comprehensive outcome letters, and notes of meetings so that there is an accurate account of the meetings and the outcomes.
The Result
• We gained enough evidence to enable us to dismiss the MD for gross misconduct, with no payment of their six-month notice and an immediate exit.
• The atmosphere in the office was greatly improved. The individuals concerned in the investigation discussions felt heard and were grateful that action was taken swiftly to resolve the issues.
• We are now in the throes of recruiting for their next MD, which may well be an internal promotion, but we are headhunting using our LinkedIn recruiter license and our Applicant tracking system confidentially under our branding to source the replacement.
• The owner of the business has taken steps to re-introduce the values with team meetings and a review of the relevant HR policies and working practices that he set out initially when he started the business to ensure that they are representative of best practice and are compliant, and is fully involved in the hiring of the replacement to ensure these values are maintained once the new MD commences employment.
• Senior manager and C suite level appointments can influence the company culture in a negative way and affect staff morale, retention and the overall productivity of the company. Best to fail fast and restore the faith of the teams they managed. In this case the team rallied, and productivity and morale were restored as the team trusted the process. Act fast to ensure your teams feel safe and supported at work.
The Conclusion
This case demonstrates the importance of acting swiftly, decisively, and fairly when senior leaders breach professional standards. While the misconduct of the MD had a damaging impact on team morale, culture, and trust, the robust and impartial HR process ensured that the issues were addressed thoroughly and transparently. By following a clear investigation and disciplinary procedure, the business was able to protect its reputation, uphold its values, and restore confidence among employees.
The swift removal of the MD not only resolved the immediate problem but also reinforced to the workforce that no individual, regardless of seniority, is above company policies and procedures. As a result, employee morale improved, trust in leadership was rebuilt, and the business is now well-positioned to appoint a new MD aligned with its culture and values.
Ultimately, this case highlights the critical role of proactive HR intervention in safeguarding workplace culture and supporting business continuity. A fair, structured process, underpinned by strong policies and active leadership involvement, ensured both justice and positive organisational outcomes.
Businessbenefits
Swift Risk Mitigation
With our support, the business acted quickly to address serious misconduct at senior level, minimising further disruption and reinforcing that all employees, regardless of position, are accountable to company policies.
Strengthened Employee Trust and Engagement
By taking decisive action, employees felt confident that poor behaviour could be challenged and addressed. This restored the open culture and rebuilt trust in leadership.
Accountability at All Levels
The process reinforced that senior leaders are not exempt from governance or performance expectations.
Improved Retention and Workplace Culture
Regular reviews and closer monitoring of behaviour prevent negative influences from spreading, protecting staff morale, productivity, and retention.
Enhanced Managerial Capability
Managers were trained to recognise grievances early, conduct difficult conversations effectively, and document outcomes properly, strengthening the company’s overall HR capability and compliance.
We're here to help
• If your senior leaders are not running the business to your satisfaction, contact us. We can help to train the management team to hold difficult conversations, and to get things back on track.
• If you have someone very senior who is causing the business to fail, or not be as successful as it could be, we can help with capability discussions, coaching or the removal of the person in question.
• Call us on 0118 324 2526 to discuss your requirements in confidence. When trust has been broken, don’t suffer in silence, there are steps we can take to resolve the situation.
