Internal or external workplace investigation: how to decide

Lots of organizations handle complaints internally, and for some types of allegations it works well. Others call for an external investigator who is an objective unbiased third party.

Rachel Maxcy is an independent workplace investigator based in Vancouver, British Columbia. We conduct investigations for organizations in British Columbia, Alberta and Ontario, and for remote workplaces.

Who can conduct a workplace investigation?

Canada does not designate or require an external investigator and lots of organizations handle complaints and allegations internally.

What matters most is that the person is impartial: not involved in the events and not under the direct control of the person the complaint is about. Ontario's guidance on workplace harassment investigations says this directly, and it is a sound test in any province.

So, why hire an external investigator?

Hiring an external investigator ensures objectivity and freedom from bias. If the complaint involves managers or senior staff, internal staff might feel pressured to assume an outcome, or fear reprisal from their bosses. Employees see an external investigator as more credible and fair, which can reduce backlash if they do not agree with the outcome. An external investigator's sole focus is the case, without competing demands, freeing up time for internal HR and employees.

Thorough, unbiased and thoughtful reports by an external investigator hold up better under the scrutiny of regulators.

When does an internal investigation work well?

Internal investigations can work more effectively when the matter is lower risk and lower stakes, and when the internal team has the capacity, skills and training to handle the investigation.

What should an organization weigh?

• Who is involved. Is the complaint about a senior leader, a manager, or a colleague at the same level? Complaints about an executive director, CEO or board member almost always call for an external investigator.
• The complexity of the complaint and allegations. Several complainants, several allegations, more than one regulatory framework, or allegations involving disability, mental health or a human rights ground add complexity.
• Time. An investigation needs dedicated time to do due diligence and a thorough investigation. Internal staff often carry the investigation on top of their regular work.
• Cost. Hiring an external investigator costs money. Finding one who provides an estimate and flexibility of approach is important. See Fees. Sometimes other ways of handling a complaint, like conflict resolution, mediation or training, are less costly than an investigation. An external investigator can offer solutions. Where it is unclear whether a full investigation is needed, a Preliminary Review and Assessment answers that question first.

How do we work with internal teams and counsel?

We work with internal teams and counsel to complement existing practices. That can mean conducting the full investigation, reviewing a complaint before the organization decides how to proceed, or working under the direction of counsel.

Next step

To talk through whether a complaint should be handled internally or externally, book a confidential call.

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