So many people avoid conflict, especially at work. That’s a problem if the leaders are conflict adverse. Why should you care? If conflict is avoided and not addressed, significant financial impact can result.
Let’s take a quantitative approach of what conflict costs an organization, costs if you address it versus costs if you ignore it. Compare the two then decide what’s best for your organization.
Quantitative Costs
A manager observes two team members openly in conflict over some issue and recognizes their 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 their 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 a formal, internal complaint is made, 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 (reviewing background information, conducting interviews, and writing a report) and multiply the estimated hours by their 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 an external charge—discrimination, for example—is filed, the conflict likely was not acknowledged internally. The cost of responding is similar to internal investigations (fact gathering, interviews, responses), but legal counsel and fees may be involved 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 grow exponentially.
Qualitative Costs
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 result: Lost productivity (can you calculate the extent?) and higher turnover (which you should be tracking).
If a work environment grows toxic, and the cause of the toxicity is ignored, employees’ low morale will also have a financial impact.
How Should Managers Address Conflict?
The role managers play in conflict occurring between their team members is frequently overlooked. Should a manager jump in and try to resolve conflict or not?
Trapped in the middle of a situation or an issue, a manager must realize he or she doesn’t necessarily own it—the employees involved generally do. Here are five tips to help managers understand their role in and the best approach for dealing with workplace conflict:
- Know when and how to intervene. Different circumstances call for different responses. If one employee’s poor performance is preventing others from getting their jobs done, the manager has a direct role to play. They must address performance deficiencies and put that team member on a path to improvement. If the cause is issues outside the workplace, then expert help, such as an employee assistance program, should be suggested.
- Give your employees the space to grow. Give employees the freedom and authority to solve work problems. Train employees and managers in conflict management techniques and problem-solving skills. Managers should model the techniques and skills learned. Think of the positive impact when your workforce is skilled in avoiding the negative impact of unresolved conflict.
- Recognize that tension, egos, and emotions often get in the way. Managers have an interest in developing good working relationships among team members. They should define the problem and the impact it’s having in the workplace. Don’t discount the impact of emotions. Sometimes they are the person’s passion around an issue. Help employees control and balance emotions so they don’t interfere with resolution.
- Strengthen facilitation skills. Managers are neutral observers to conflict. This is a great vantage point from which they can guide employees through a mediated discussion. Define roles, and set ground rules. The employees, not the managers, are the primary players who will be asking questions of each other and proposing solutions. Managers don’t offer advice, opinions or solutions, even if asked. They are there to keep the discussion on track.
- Optimize conflict. Employees close to the work often have great ideas for better solutions. Managers should help them brainstorm, evaluate and prioritize these ideas. When people sit down and talk, calmly and rationally, great information and viewpoints are exchanged. Working relationships are strengthened.
Organizations that maintain a mindset that conflict is often creativity trying to happen, will learn to embrace conflict rather than avoid it. They leverage the tension to bring about optimal solutions while retaining staff and developing strong team relationships. The result—a vibrant, innovative and engaged culture and an organization that will grow and thrive.
The authors of this article have written two books about conflict: “The Essential Workplace Conflict Handbook” and “The Conflict Resolution Phrase Book.” Learn more on their website bigbookofhr.com.
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