72. Preventing Employee Revenge - Spot & Stop Retaliation
Manage Disgruntled Staff Before They Harm Your Business.
Imagine this - A recently terminated employee starts spreading false rumours about your business online. Another deliberately sabotages projects or leaks confidential data to competitors. Meanwhile, a current employee, frustrated with management, quietly undermines leadership decisions. Over time, you notice -
Tensions rising among employees as resentment builds.
Workplace productivity dropping due to passive-aggressive behaviour or intentional mistakes.
Confidential company data or trade secrets being leaked to competitors.
Negative online reviews or public accusations damaging your business’s reputation.
Disgruntled employees may seek revenge in various ways—spreading negativity, sabotaging operations, or even engaging in legal battles. Whether they are current or former employees, their resentment can pose serious financial, operational, and reputational risks.
HR psychology tells us that employees who feel unheard, disrespected, or unfairly treated are more likely to engage in retaliatory behaviour. However, a well-managed conflict resolution process and proactive employee engagement strategies can prevent situations from escalating into acts of revenge.
The challenge? How do you identify, manage, and prevent disgruntled employees from harming your business?
The Solution – A Three-Part Approach - Detect, Defuse, and Prevent
Effectively managing disgruntled employees requires early detection, professional conflict resolution, and proactive retention strategies. Here’s how to protect your business from employee retaliation while fostering a positive workplace culture.
1. Detect Warning Signs of a Disgruntled Employee
Since retaliation often starts with small behavioural shifts, leaders must recognise early warning signs before issues escalate.
A. Identify Common Signs of Employee Resentment
Increased negativity – Complaints about management, passive-aggressive remarks, or declining engagement.
Lack of cooperation – Avoiding teamwork, refusing feedback, or missing deadlines deliberately.
Work sabotage – Making errors intentionally, deleting files, or failing to complete tasks.
Spreading misinformation – Bad-mouthing leadership, gossiping, or posting negative content online.
Legal threats – Mentioning lawsuits, labour disputes, or regulatory complaints.
Red Flag - If an employee shows multiple signs of frustration and withdrawal, they may be at risk of engaging in retaliatory behaviour.
B. Identify the Root Cause of the Employee’s Resentment
Was the employee denied a promotion or raise they expected?
Did they receive criticism they felt was unfair?
Were they involved in workplace conflicts that weren’t properly resolved?
Have they recently been disciplined or laid off?
HR Psychology Insight - Employees who feel undervalued or mistreated are more likely to act out, but early intervention can shift their perspective.
C. Monitor for Unusual Workplace Behaviour or Security Risks
Ensure access to sensitive data is revoked immediately after employee termination.
Monitor project management tools for signs of intentional sabotage.
Keep an eye on internal communication for toxic behaviour or misinformation.
Red Flag - If an employee seeks access to confidential files or engages in suspicious activities before leaving, they may be planning retaliatory action.
2. Defuse the Situation and Rebuild Workplace Trust
Once a disgruntled employee is identified, leaders must act quickly to de-escalate the situation and prevent further damage.
A. Address Employee Concerns Through Mediation and Dialogue
Hold a one-on-one meeting to discuss their frustrations calmly and professionally.
Acknowledge their concerns and clarify misunderstandings.
Offer solutions where possible, such as additional support or re-evaluation of decisions.
HR Best Practice - Employees who feel heard and respected are less likely to engage in acts of revenge, even if they don’t get their way.
B. Set Clear Boundaries and Consequences for Misconduct
If the employee remains in the company, outline behavioural expectations moving forward.
For terminated employees, remind them of confidentiality agreements and legal obligations.
Implement IT security measures, such as revoking access to company systems.
Red Flag - If the employee shows no interest in constructive solutions and continues disruptive behaviour, disciplinary action may be necessary.
C. Conduct an Exit Interview for Departing Employees
Ask for honest feedback about their experience and reasons for leaving.
Identify patterns in employee dissatisfaction to improve future retention.
Ensure they leave on professional terms to reduce post-employment resentment.
HR Psychology Insight - Employees who feel their concerns were acknowledged—even during termination—are less likely to seek revenge later.
3. Prevent Future Retaliation Through Employee Engagement and Fair Leadership
To minimise the risk of disgruntled employees, businesses must focus on proactive employee engagement and conflict resolution strategies.
A. Foster a Culture of Fairness and Transparency
Ensure promotions, raises, and disciplinary actions are based on clear, objective criteria.
Encourage open communication between employees and leadership.
Regularly review workplace policies to ensure fairness and consistency.
Red Flag - If employees feel favouritism, bias, or lack of recognition in the workplace, dissatisfaction will increase over time.
B. Strengthen Employee Engagement to Reduce Resentment
Recognise and reward employee contributions regularly.
Provide career development and mentorship opportunities.
Encourage team-building activities to strengthen workplace relationships.
HR Best Practice - Employees who feel valued and connected to their workplace are less likely to harbour resentment, even after setbacks.
C. Implement Risk Management Strategies for Employee Departures
Use non-disclosure agreements (NDAs) for employees handling sensitive data.
Revoke access to company systems immediately after termination.
Ensure departing employees receive clear information about final pay and benefits to avoid post-employment disputes.
Red Flag - If former employees maintain access to company files or systems, they could pose a security threat.
Reflective Scenario – What Would You Do?
A disgruntled employee who was recently denied a promotion starts bad-mouthing the company online, and several employees begin echoing their frustrations. The company fears reputational damage and potential legal claims.
Using the strategies above, you might -
Meet with the employee privately to understand their frustration and offer support.
Reinforce clear workplace policies and expectations for professional conduct.
Monitor internal and external communications to manage potential PR risks.
Implement company-wide engagement initiatives to rebuild workplace morale.
By recognising dissatisfaction early, addressing concerns fairly, and strengthening workplace culture, businesses can prevent retaliatory behaviour and maintain a positive work environment.
Golden Nugget - "A well-managed workplace doesn’t just prevent disgruntlement—it fosters loyalty, engagement, and long-term success."
By detecting early warning signs, addressing concerns with professionalism, and strengthening employee engagement, SME leaders can reduce workplace resentment and create a culture of mutual respect and trust.