The Effect of Poorly Managed Work-Place Conflict

The Effect of Poorly Managed Work-Place Conflict

by Rebecca L. Zimmerman, Esq

When work-place disagreements deteriorate into productivity-stalling conflict, the effect on the company’s smooth operation can be seriously impeded – especially if the disagreements lead to high turnover.

Studies have shown that replacing a salaried employee can cost the equivalent of six to nine months of that employee’s salary on average. For a manager making $50,000, that can amount to $25k to $40k. Other studies show that managers and employees spend anywhere from 20% to 40% of their working day dealing with conflict. Calculating the effect on the bottom line, without taking into account any of the stress-related costs in the way of medical expense and lost work days, leads to staggering figures. One study showed that U.S. employees spent 2.8 hours per week dealing with conflict – amounting to the equivalent of 385 million working days.

The article, “The Leaky Bottom, The Hidden Cost of Conflict in the Workplace”, states that a “2013 Stanford University Study revealed that a lack of skills when handling conflict in the workplace is the highest area of concern for CEOs.

“Traditional go-to professionals (such as leadership and business development, risk management, organization psychology, employment engagement, change management, human resource talent and human capital management, among others) do not make a significant impact when addressing this particular need. They typically end up funneling the majority of human disputes processes to the Human Resources Department, leaving it to them to opt for either discipline or termination.

“The Alternative Dispute Resolution (ADR) field and its subfields, which include conflict management consultants, conflict management coaching and conflict engagement specialists, exist to build a bridge between the relationship aspects of the human capital in organizations and the need to continually work together toward a common goal at the workplace.”

If your business is experiencing unrest due to unresolved conflict, contact Keystone Conflict Solutions LLC at rebecca@kcsmediation.com or (404) 314-7228 to learn if Mediation or Conflict Management Consulting might be beneficial in creating a smooth and efficient operation.