How can I manage workplace conflicts with my employees?

All businesses experience conflict, but when not handled appropriately, conflicts in the workplace can lead to high staff turnover, decreased motivation, and an increase in costs for employers. A recent report published by Acas has estimated that the total cost of workplace conflict to UK employers is £28.5 billion a year. Our Employment Law team today discuss how you can manage conflict in your business and avoid some of the costs.  

Cost of employee conflict

While some employers may worry that a workplace conflict will lead to an expensive tribunal claim, Acas reported that litigation actually accounts for a relatively small portion of the costs associated with workplace conflict. Instead, it was the costs of resignations (£11.9 billion) and dismissals (£10.5 billion) which were the most expensive for employers. In contrast, conflicts which were addressed early on, and were resolved through informal discussion, incurred the lowest cost.

In addition to financial costs, workplace conflict can also harm employee wellbeing and exacerbate conditions like depression and anxiety. Acas reported that 56% of those surveyed reported stress, anxiety, or depression, and 40% reported being less motivated. Such an effect on employee wellbeing is sure to harm workplace productivity, and if left unchecked could harm your reputation as an employer.

Strong communication channels

Strong formal and informal communication channels between employees and management can help identify issues early and reduce the occurrence of conflicts, with the following being three suggested ways to stay in touch with your employees:

1. Soliciting feedback from your employees through activities such as employee involvement programmes, suggestion boards, and regular check-ins can help you better understand your workforce and identify potential areas of conflict.
2. You should also take steps to ensure employees feel comfortable approaching a Line Manager or Human Resources representative and speaking honestly about any issues they are experiencing. Team building events, days out, and regular social time at work can help build trust and comradery among your employees and management and facilitate open communication. This should enable more conflicts to be resolved early on, through informal discussion between colleagues or with a manager, and avoid the need for more costly and time consuming formal procedures.
3. Finally, have a grievance procedure in place for employees who do feel the need to raise a formal grievance, but make it clear that this procedure should only be used after informal discussion has failed to resolve the conflict.

Mediation in the workplace

Mediation is a semi-formal method of conflict resolution which you may wish to use for more complex conflicts, or where informal discussion has failed to produce a resolution. It can be used at any time during a dispute, but ideally should be used early on in the conflict. A trained staff member can act as the mediator, or you may engage the services of a third party mediator.

Some of the benefits of mediation are that it is flexible and usually quicker than more formal processes. The parties involved are encouraged to express how they feel and have an open conversation with each other. The goal of mediation is to get the parties to empathise with each other and arrive at a solution that is agreeable to everyone. When successful, mediation can help preserve relationships and improve future communication between the parties. 

Training for managers on conflict resolution

In its report, Acas identified low levels of management skill and confidence as one of the main barriers to effective conflict resolution. You may therefore consider providing training in conflict resolution and effective communication to your management team, or even your entire workforce if this is feasible.

Some managers may try and avoid conflict or feel it is easier to simply dismiss an employee who is underperforming or causing issues. Additional training in conflict resolution and performance management may give your managers the confidence and skills to have difficult discussions and address conflicts head on as they occur.  One of the important starting points in this is ensuring that your line managers understand the need for impartiality so that they are seen to be treating all employees in the same way based on the evidence of a situation and not been seen as having different professional relationships with different direct reports. Employees may also be more willing to go to their managers early with an issue if they are confident it will be handled impartially and appropriately.

If you need advice on how to manage workplace conflict, or need help taking an employee through a disciplinary or grievance procedure, contact our Employment Team today on 023 8071 7717 or email employment@warnergoodman.co.uk.

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ENDS

This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.