The Cost of Conflict

 

So many people avoid conflict, especially at work. That’s a problem especially if the leaders are conflict adverse. Let’s take a quantitative approach of what conflict costs an organization if you address it versus ignore it. Compare the two then decide what’s best for your organization. 

Addressing conflict has associated costs. Consider the situation where a manager observes two team members openly in conflict over some issue and recognizes her need to address it, preferably by sitting them both down and having a facilitated discussion. Calculate those costs: 1) the number of hours the manager spends preparing and holding the discussion times her hourly rate; and 2) the number of hours spent by the individuals in discussion times their hourly rates. This is the simplest approach, and it should be the most cost effective.

If an employee brings a formal, internal complaint, the complexity and costs increase. Someone (internal or external) investigates. It involves time gathering and reviewing background information, determining which individuals to interview, conducting those interviews, and preparing investigation reports. Estimate the amount of time the investigator spends (background, interviews, report) and multiply the estimated hours by his hourly rate. Then add the time spent by interviewees times their hourly rates. There may also be costs associated with legal advisors, depending on the nature of the complaint. 

If external charges are filed, charges of discrimination, for example, this is an indicator that the conflict may not have been acknowledged internally. The cost of responding to an external charge may be similar to internal investigations (fact gathering, interviews, responses).  However, legal counsel will likely be involved, and legal fees will accrue increasing the costs. If a lawsuit is filed, outside counsel’s legal fees will dominate. Needless to say, as the conflict moves further from the root cause, the costs will grow exponentially.

Now consider a situation where there is a conflict that is not brought to anyone’s attention, or perhaps it was, but was not addressed. Are you aware of how many people leave your organization because they have “suffered in silence” until reaching the point where they decide to leave?  The associated costs include lost productivity (can you calculate the extent?) and turnover (which you should be tracking). 

If a work environment is allowed to grow toxic, and the cause of the toxicity is ignored, consider the costs of low morale, lost productivity and extensive turnover.

So, what’s an organization to do if they want to minimize the costs of conflict?

• Foster an environment where differences and problems are addressed. For example, the two team members who can bring their conflict to the manager.
• Train managers how to spot issues so they don’t escalate.
• Empower employees to confront conflict in a positive way, and support them when they bring the conflict forward. 
• Hold all employees to the same standards.
• Invest in training for managers and employees. Compare the training costs with the cost associated with conflict outlined above. Consider which approach brings your organization a larger return on its investment.

You can read more about conflict in our books, The Essential Workplace Conflict Handbook and The Conflict Resolution Phrase Book. To learn more, visit our website at https://www.bigbookofhr.com/the-conflict-books