How much does workplace conflict cost?

Did you know that the average employee spends 2.1 hours a week dealing with conflict?

Whilst disagreement is common in the workplace, it becomes a serious problem when it hits the business bottom line. So how much of a problem does conflict cause and what does it cost?

Let's measure the loss that this average time in conflict costs a business with 100 staff, working a 35 hour week, 48 weeks a year, and paid an average salary of ￡25,000.00. The average time lost is 100.8 hours per employee, the average cost per hour is ￡14.88, so that means a loss to the business each year of ￡315,000.00.

That is staggering! Even more staggering for an organisation with 1,000 staff.

Imagine tapping into this time as a resource and turning it into a profit instead of lost time.

Well, that is possible. So, what does it take?

Firstly, the business needs to recognise conflict early and equip its staff to deal with it effectively. Most managers are ill equipped and lack the confidence to deal with conflict situations or "difficult conversations". Organisations who have "seen the light" are training their managers and key staff to deal with conflict through active listening and informal mediation skills, and consequently see improved morale and in turn increased efficiency.

Secondly, the business needs top down support to address the issue. Change is not always a bad thing. Sometimes it brings opportunity. The way change is managed is vital to getting "buy in" from employees. Some will fear change and oppose it, however, if they are engaged in the right way, they will be more likely to support the change.

Thirdly, the business needs a system for dealing with conflict and one that works. This may require a review of policies and procedures and administration, but there will certainly be a return on the investment. This may require training key staff as internal mediators.

Take the first step and turn conflict into profit. Increased efficiency will also lead to improved morale which in turn will lead to satisfied staff and a good reputation as an employer.

LSM offers a 3 day Workplace Mediation Certificate both as an open course and an in-house option. Details are at www.londonschoolofmediation.com. You can call us to discuss in-house requirements on 0207 583 0444.