Cost of Conflict

Workplace conflict resolution research suggests managers are spending up to 42% of their time addressing conflict situations which equates to billions of dollars in paid hours. Research also shows that conflict in the workplace is detrimental to employee’s physical and emotional health and subsequently negatively affects worker productivity, staff absenteeism and retention, stress levels and burnout rates.

Employee turnover due to conflict is especially costly with recruitment and training costing employees up to 200% more than the original employee's salary. Not to mention the exorbitant cost in time, money and stress of formal grievance and legal proceedings.

The business community is particularly vulnerable to the effect of lengthy and expensive conflict resolution and the subsequent impact of upon relationships, reputations, business interests and the ability to move forward. Preventing a protracted conflict situation also reduces the emotional cost and power differentials between parties and increases a parties’ capacity for de-escalation and resolution of future problems.

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