Workplace conflict

Many employers accept that from time to time (or in some cases, frequently)  conflict in the workplace will arise.  How they go about it usually depends on the culture of the organisation.

Having worked in a variety of sectors of different sizes and business models, I have seen everything from leaders burying their heads in the sand hoping it will miraculously go away, to the other extreme where employees are ruled by fear.  Neither option is beneficial to the organisation, with both approaches likely to cost the business dearly.

Acas (2021) reported that conflict costs UK businesses more that £4,000 per employee each year for reasons such as:

  • Wasted management time – the further conflict escalates, the higher the burden on managers
  • Reduced productivity – reduced engagement/spill-over into teams and wider organisation
  • Absence – around 1 in 10 workers take time off work as a result of conflict
  • Presenteeism –workers with mental ill health due to conflict tend to stay in work but productivity is 15-30% lower
  • Turnover – replacement recruitment and training are a cost to employer and productivity of new recruits is significantly lower

The cost of conflict to the employer can spiral, with an outcome of resignation interestingly representing the highest average cost:

  • Individual raises issue with manager – £78
  • Facilitated meeting HR and union rep – £189
  • Workplace mediation – £1,500
  • Individual brings formal grievance – £950
  • Absence due to anxiety / stress / depression – £7,614
  • Employee resigns/dismissed – £30,614
  • Employee brings Employment Tribunal claim – £5,872
How can conflict be avoided?

In short, it can’t.  Conflict is an inherent and unavoidable part of the employment relationship and it is highly unlikely that employers can avoid it completely.  Organisations who purport to have zero workplace conflict are likely to either be ignoring it or are blissfully unaware of its prevalence.  Conflict can remain ‘hidden’ but if you scratch the surface it is likely to be there in some form – Acas (2021) reported that in the UK, one-third of workers experience conflict at work every year.

The pandemic, with the various stresses and strains it brought, is likely to have exacerbated workplace conflict and in some cases has exposed deep-rooted problems.  As we begin to return to ‘normal’, I have seen conflicts which have effectively been on ‘pause’, start to resurface.  This sits alongside wider changes in society such as the economy, increased engagement in activism, different values emerging as new generations join the workplace, a changing trade union position and a growing number of Employment Tribunal claims, which all contribute to the post-pandemic landscape we are currently navigating.

If employers are alert to the possibility of conflict within their organisation and are willing to address it through low cost ‘early interventions’ and preventative measures (such as the prioritisation of open and effective communication channels) they can work to avoid the negative impact, both in terms of direct financial costs and the sometimes less obvious cost to their employees wellbeing.

What is early intervention?

Early intervention is the key to positive outcomes when managing conflict.  This can take a variety of forms, such as on-going dialogue, informal conversations and mediation between parties at an early stage.  So many times in formal grievance processes I have been told ‘this is the first time anyone has listened to me’ – this is very often too late!  I advocate investing in developing managers to manage conflict, so that when it does arise they are equipped with the tools to deal with the situation well.

I’m not saying there isn’t place for traditional, more formal procedures.  Sometimes, despite the best will, matters will escalate and formal processes are necessary.  There are also occasions where due to the seriousness of the matter, formal action is the only option.  However, all too often I see cases whereby employers have become lost in process – grievance appeals, counter-grievances etc, where, had preventative measures and/or early interventions been implemented, it would not have escalated to the point of no return (and would have saved the employer a lot of time and money).

Addressing workplace conflict – 5 top tips
  1. Develop your managers to have great conflict management skills – it is part of their role!
  2. Involve your employees in decision-making to retain commitment and engagement
  3. Listen to your employees, ensure they have a forum for their voice to be heard – happiness and wellbeing are linked to higher productivity
  4. Seek to resolve any conflict at the earliest stage and ‘nip in the bud’ informally where possible
  5. Aim to preserve the employment relationship to avoid significant costs – mediation can be a very effective strategy to achieve this
What is Mediation?

Mediation is a way of talking through difficulties and problems in the workplace, with the help of an impartial third party.   The people directly involved, not the mediator, make their own decisions.  It provides a structured, informal way of resolving complaints, grievances and disputes.

Because mediation is not about seeking a culprit, it can help rebuild relationships and restore broken communication and trust.  It’s ideal to work through difficulties arising because of personality clashes, breakdown in communication, disagreements over work style or behaviour.  It’s fast, private and can be very effective.

Most kinds of disputes can be mediated as long as those involved want to find a way forward and for things to be different.  Mediation is most effective the earlier on that it is used.  However, there may also be situations in which formal complaints are underway or have already taken place, where mediation can be invaluable as a way to repair working relationships.

I am a qualified workplace mediator and member of Mediator Network and through Mustard HR now offer a mediation service – please feel free to get in touch for more information