The cost of training for healthy conflict resolution is far, far less than the cost of unresolved chronic conflict. In fact, such training brings a return on investment—because although the costs of conflict are hidden, they’re much higher than most of us realize.
Daniel Dana, Director of Program Development for Mediation Training Institute International, identifies eight “hidden” costs of conflict that many employers overlook. Dana says “Not all cost factors are relevant to every conflict, but every conflict incurs cost by several of these means.”
Which of the following are eating away at YOUR profits?
1. Wasted time  Studies vary, but the findings show that between 30% and 42% of a manager’s time is spent simply dealing with squabbling co-workers.
2. Reduced quality of decisions Backbiting and sabotage, deadlocked debates, or simply “giving in” either destroy or greatly damage the chances for arriving at the best decisions.
3. Loss of skilled employees Chronic unresolved conflict is a decisive factor in at least 50% of all volunteer departures.
4. Restructuring inefficiencies When a company redesigns workflow so two or more people don’t have to interact with each other, changed procedures are rarely more efficient.
5. Sabotage/theft/damage The amount of theft and damage in a company has a direct correlation to the level of employee conflict.
6. Lower levels of motivation Conflict eats energy that could be applied to income-producing activities.
7. Absenteeism A high correlation exists between absenteeism and needing a break from fighting with co-workers.
8. Health costs Employees working with high levels of interpersonal conflict are more likely to have injuries. The resulting impact on a company’s bottom line is delayed, but it’s still there.
Bottom line, hidden costs of conflict are costing each of us -- a LOT! Invest in a solutions-focused workshop and you will see a return on your investment.
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