Workplace conflict comes in many different forms. It may arise from colleague disagreements, tensions between managers and employees, performance-related concerns, collective disputes involving multiple employees or more serious allegations such as bullying & harassment. While conflict itself may not be unusual, the way it is managed by the business can have a significant impact on both employees and the wider business.
Many employers assume that the greatest costs associated with workplace conflict comes from employment tribunal claims or settlement payments. And while legal costs in these instances can be significant, the financial implications actually take effect much earlier.
Once of the most immediate impact is increased absence. Research shows that almost 57% of employees involved in conflict at work have taken sickness absence as a result of stress, anxiety and reduced wellbeing, often accompanied by reduced productivity. Conflict when left unmanaged also contributes to employee turnover, with many employees choosing to leave rather than remaining in a difficult working environment. This results in increased leaver, recruitment, onboarding and training costs that can quickly escalate, particularly in cases of experiences hires.
Alongside direct costs, employers should not overlook the reputational risks associated with poorly managed workplace conflict. A company’s ability to attract, engage and retain relent is heavily influenced by its overall culture and reputation. Businesses that fail to address workplace conflict may find employee engagement and productivity suffers, morale declines and the company reputation become damaged.
You may be asking, why do workplace conflicts remain unsolved?
In most cases it is not because employers are unwilling to address the issues or support their employees. Most commonly, it is because managers and business leaders are not sure what the best approach is to manage difficult situations.
Key steps for managing workplace conflict
Have a clear and agreed process for managing workplace conflict
Act promptly and address the concerns before they escalate
Investigate issues thoroughly and fairly
Remain impartial and appoint an independent individual where appropriate
Ensure your managers are trained and confident to handle difficult situations
Demonstrate a genuine commitment to supporting employees and creating a safe place to work
Perhaps the most important step of all is to take action.
The worst thing an employer can do is nothing. What can initially appear as a small disagreement can very quickly escalate into a much larger issues, effecting wider teams and damaging relationships and culture. Left unmanaged this can lead to formal grievances, disciplinary matters, increased absence and in some cases settlements and tribunal claims.
How can we help?
If you’re unsure where to start, lack the necessary policies and procedures, need support training your managers to handle these difficult situations, or are currently dealing with a particularly tricky employee relations issue, our HR consultants are here to help. We provide practical, expect advice and support at every stage of the process, helping you manage conflict effectively, fairly and with confidence.