Avoiding Conflict Costs

Conflict in the workplace is an all-too-familiar, even universal, phenomenon in business. A survey of 5,000 employees revealed that?85%?of them deal with conflict in their working lives. Twenty-nine percent said they deal with it “always” or “frequently,” according to a study commissioned by CPP , Inc., a provider of assessments and training tools.

When happening they can be costly for companies, both in terms of financial and non-financial costs. Here are some examples of the cost of conflicts in companies:

1. Lost productivity: Conflicts can be distracting and disruptive, causing employees to lose focus and become less productive. This can result in lost time and decreased output.
2. Decreased morale: Conflicts can have a negative impact on employee morale, causing them to become disengaged and less motivated.
3. Turnover: Conflicts can cause employees to leave the company, resulting in the cost of recruitment, training, and lost productivity.
4. Legal costs: Conflicts can result in legal action, leading to costly legal fees and settlements.
5. Damaged reputation: Conflicts can damage the reputation of a company, making it less attractive to customers, investors, and employees.
6. Decreased innovation: Conflicts can stifle creativity and hinder innovation, as employees may be reluctant to share ideas or work together.
7. Decreased collaboration: Conflicts can lead to decreased collaboration and teamwork, causing projects to suffer and leading to decreased output.

Conflicts can have far-reaching consequences that can negatively impact a company's bottom line, so it's important for companies to take steps to prevent and resolve conflicts in the workplace.

What companies shall do to avoid conflicts:

1. Encourage open communication: Encourage employees to openly communicate with each other and with management. This helps to build trust and avoid misunderstandings.
2. Define clear expectations: Make sure that all employees understand their role and responsibilities. This helps to reduce confusion and prevent misunderstandings.
3. Promote a positive work environment: Create a positive work environment where employees feel valued and respected. This can help to reduce tensions and prevent conflicts from arising.
4. Foster teamwork: Encourage teamwork and collaboration between employees. This helps to build positive relationships and prevent conflicts from arising.
5. Offer training: Offer conflict resolution training to employees to help them handle conflicts effectively.
6. Encourage diversity and inclusion: Encourage diversity and inclusion in the workplace. This can help to reduce prejudice and discrimination, which are common causes of conflict.
7. Have a conflict resolution policy in place: Develop a conflict resolution policy that clearly outlines the steps employees should take if a conflict arises.
8. Address conflicts promptly: If a conflict does arise, address it promptly to prevent it from escalating.

By taking these steps, companies can reduce the likelihood of conflicts arising and create a positive work environment where employees can thrive. Encouraging open communication, defining clear expectations, promoting a positive work environment, fostering teamwork, offering training, encouraging diversity and inclusion, having a conflict resolution policy in place, and addressing conflicts promptly are all important steps in avoiding conflicts in the workplace.

How can leaders and managers act?

Using effective methods can lead to positive outcomes for all parties involved. Here are some of my advices for resolving conflicts in the workplace:

1. Encourage open communication: Encourage all parties to openly communicate their concerns and opinions. This helps to ensure that everyone is heard and their perspective is understood.
2. Stay calm: It’s important to maintain a calm demeanor during conflict resolution to avoid escalating the situation. Encourage all parties to do the same.
3. Focus on the issue: Rather than attacking the person, focus on the issue at hand. This helps to keep the conversation productive and focused on finding a solution.
4. Identify common goals: Try to identify common goals between the conflicting parties. This can help to reframe the conflict and find a solution that benefits everyone.
5. Use active listening: Active listening is an important skill in conflict resolution. It involves fully listening to what the other person is saying and acknowledging their perspective.
6. Find a compromise: Conflict resolution often requires finding a compromise between the conflicting parties. This means finding a solution that is acceptable to both parties.
7. Seek outside help: If the conflict cannot be resolved on your own, consider seeking outside help from a mediator or HR representative.
8. Follow up: After the conflict has been resolved, it’s important to follow up to ensure that the solution has been implemented and that all parties are satisfied.

By following these best practices, you can effectively resolve conflicts between coworkers and maintain a positive work environment. Encouraging open communication, staying calm, focusing on the issue, identifying common goals, using active listening, finding a compromise, seeking outside help, and following up are all important steps in resolving workplace conflicts.