The cost of conflict is something that never appears in your companies annual report or accounts. Conflict has a direct and costly impact on your organisation including
- the cost of formal proceedings such as grievances and employment tribunal claims
- sickness absence costs as the individuals concerned take time off to deal personally with the effects of the conflict
- management time being diverted to dealing with the conflict instead of focusing on managing the business
- staff turnover and recruitment and re-training costs where conflict leads to the departure of those affected from the organisation
- lower staff morale leading to less commitment to exerting discretionary effort, leading to lower productivity
- poor working relationships within the teams affected
- loss of focus on corporate goals and common objectives as people are distracted by the disagreement
- the potential for a blame culture to develop, rather than one focused on innovation
- the employer’s external reputation could be compromised