On 18 September BBC News reported that Gray was the source of conflict among Labour colleagues, in part due to the news she had received a pay rise upon entering government.
On Sunday (6 October) Gray said that she was resigning as she "risked becoming a distraction to the government’s vital work of change” due to the divisiveness of the commentary over her salary.
"Dealing with situations where an individual’s relationship with their employer becomes not just public, but the subject of intense media speculation and commentary, requires significant alignment across any organisation,” Lorraine Mills, principal consultant at management consultancy Right Management, told HR magazine.
Employers should ensure they have a strategy in place for situations where employees’ reputation is damaged, Mills added.
She continued: “It must start with clear and decisive leadership from the top; be clear about the facts, the optics and the strategy before a situation becomes public. When a media storm does hit, it’s important to act quickly and to do so in line with your organisation’s values.
Read more: What can HR learn from the Sue Gray salary row?
“With today’s demands for transparency, every internal decision can quickly become part of a very public discussion. It’s not just down to one individual leader to be agile and decisive in these situations, but the whole of the leadership team, particularly those leading the HR, communications and legal functions.
“Those who invest the necessary time and effort in such high-performing leadership teams must also have a shared understanding of their employee value proposition. This includes clarity on what behaviour is okay (or not) and how people can expect to be treated.
"After all, our values are not just about what we do when times are good but also the choices we make when times are tough. Getting all of this right will ensure leadership teams have the trust, open communication and the agility to respond to any situation coherently and at pace.”
According to BBC News political editor, Chris Mason, Keir Starmer could either “get rid of her, get rid of those unhappy with her, or solve the underlying problems” to solve the controversy around Gray.
In a report on 6 October, Mason suggested that Starmer made a decision on Friday 4 October that he was "willing to sack" Gray.
HR is responsible for advising employees whether to resign if they think there is a chance they could be dismissed, according to Kate Palmer, employment services director at HR consultancy Peninsula.
Read more: Murder suspect unfairly dismissed over reputation risk, tribunal rules
Speaking to HR magazine, she said: “In most workplaces, the disciplinary process is used to deal with an employee who has brought reputational damage on the employer. Alternatively, other formal procedures could be used if there’s a concern that continued employment is untenable and dismissal will ensue.
“Whilst employers may choose to suggest that an employee resign to avoid being dismissed, this is a tricky move and should be approached carefully due to the operation of unfair dismissal laws.”
HR professionals should also ensure that they support employees under scrutiny, Palmer commented.
“It will be important for employers to show visible support to their employees during mounting outside influences,” she continued. “This doesn’t mean ignoring any wrongdoings, but employers can simultaneously proceed with an investigation or formal action against an employee whilst being sympathetic to the circumstances.
“The impact on an employee’s mental health caused by scrutiny – often by people who are not involved and are not aware of the full facts – can be significant and the employer should take steps to ensure their employees’ wellbeing.
“This can be done by reminding the employee of support measures available through work – an employee assistance programme, for example – or signposting external help.”
