Using Workplace Conflicts to Your Advantage

HR Advisor feature article | April 2007

Conflict is a natural part of doing business. Staff members may have different or even opposing perspectives, approaches or goals. If managed well, however, these differences can help keep the business sharp by stimulating creativity, promoting innovation, and encouraging improvements.

In contrast, businesses that stifle dissent or sugar-coat differences may be missing a big opportunity. On the strategy side, these businesses may stagnate quickly and risk failure. On the personnel side, these businesses may alienate employees or quash valuable ideas.

Sometimes referred to as Alternative Dispute Resolution (ADR), the concept of conflict resolution resulted from the realization that more productive options exist instead of going to court or even using hostility. To ensure your employees manage disagreements proactively and productively, you can do a lot by knowing when and how to intervene.

Recognize the Costs of Conflict in the Workplace

Conflicts can become business killers if left unresolved and unchecked.

• Lost Work Time. Several studies over the last decade suggest that a typical manager spends between 25% and 40% of her time dealing with employee conflict.
• Increased Health Care Costs. The Journal of Occupational and Environmental Medicine has reported health care costs nearly 50% greater for workers claiming high stress levels.
• Absenteeism. A reason for absenteeism and a byproduct of unhealthy workplace conflict, stress increased 316% between 1995 and 1999.
• Theft and Sabotage. Dissatisfied employees can retaliate against the company which could involve confidential and proprietary information and materials.
• Employee Turnover. Termination, recruitment, training, and other replacement costs can unnecessarily add up.
• Increased Grievances and Complaints. Between 1992 and 1998, annual monetary benefits increased from $12.7 to $34.5 million for EEOC sexual harassment cases and from $200,000 to $49.1 million for EEOC-handled ADA cases.
• Increased Legal Fees. According to a 2005 Fulbright & Jaworski survey on U.S. litigation trends, almost 90% American companies are involved in litigation.
• Damage to Company Reputation. When internal conflict goes public, increased customer complaints, reduced revenue, increased expenses, and decreased market share can devastate any business.

Identify the Warning Signs

Managers need to notice important indicators, respond immediately, and constantly monitor them:

• Reduced productivity
• Poor work quality
• Communication gaps
• Questionable leadership
• Gossip and spying
• Low morale
• Weak team collaboration
• Short temper flare-ups

Leverage Effective Strategies to Manage Conflict

Successful businesses engage in various strategies to prevent and resolve conflicts productively and with integrity.

Employee Handbook Policy. One simple step is for your Employee Handbook to have a policy or statement describing the (desired) company culture and code of conduct. For example, “As our employee, you are responsible for your workplace conduct and performance, including resolving differences concerning work relationships…As your employer, [the Company] is committed to establishing and enforcing policies that promote fulfillment of our sense of community and partnership.”

Conflict Resolution Training.Put policies into action by training all employees. The ideal training should focus on applying specific skills in real world scenarios such as:

• Initiating cooperation instead of instigating resistance among project team members
• Responding immediately to any allegation of perceived offensive or harassing behavior
• Listening in ways so employees can voice complaints in a safe and confidential environment

Peer to Peer Resolution. Firstly, in a private and confidential area, meet individually meet and objectively listen to each employee’s side of the story. Take lots of notes to document each discussion—just the facts, not your opinions.

After accounting for all parties involved, bring the employees together. Your step-by-step role:

• Lay the ground rules. Each employee needs to understand that the shared goal is resolution.
• Identify the problem. Encourage everyone to talk it out so everyone at least recognizes the key issues and why a conflict exists.
• Clarify the perspectives. As needed, set a time limit for each response (e.g. 10 minutes per person). Have each person retell their story and state how he or she felt, as in “I was (confused, annoyed, upset) when (the situation) happened.” If an employee tells a story different from what was discussed in the individual meeting, simply refer to your notes; remind what he or she said; and bring the group conversation right back on track.
• Determine the actions and objectives. Account for all perspectives. Also, consider how one action may impact another. How will projects be affected? How much time and resources can be afforded? Often, each person’s end goal is quite similar.
• Establish shared commitment. Referring to the company’s big picture goals makes for a great common ground. Be sure to draft and document the agreement for all to sign-off.

Note: If you are not ready or having a hard time in resolving the conflict on your own, check with your manager for guidance—no need to let the process feel painful or the problem linger unnecessarily. At times, handing off the baton is best so the shared goal of resolution is reached.

Employee to Supervisor Resolution.If the conflict exists between an employee and a supervisor, bring in a third party like upper management to observe or, if necessary, to facilitate. This can be a simple, smart move to help take any emotional edge off your shoulders. The person then would follow a similar process as illustrated above.

External Intervention.Certain situations may require outside intervention as the next best step. Various professional services exist in the areas of ADR, mediation, and arbitration to help resolve disputes.

Everyday Tips. Incorporate the following work habits on a daily basis to help strengthen the positive interactions in your business.

• Encourage healthy conflicts. In the spirit of continuous improvements, address issues as growth opportunities before they become problems. Use weekly staff meetings as key checkpoints for your employees to voice their concerns and to exchange valuable ideas.
• Ensure employee expectations remain realistic and consistent with their job descriptions, as well as relevant to the company’s initiatives and goals.
• Communicate regularly the business goals and expectations to everyone. Reinforce clearly each employee’s roles and responsibilities.
• Recognize and reward success. Employers promoting sincere appreciation for their employees and their work easily make for a less hostile and for a more productive work environment.

Effectively managing destructive conflicts is a critical skill for any employee, leader or manager. Even an informal complaint resolution at any point provides managers with a low-cost means of maintaining cohesion and productivity. Applying various conflict resolution strategies can help you pull multiple perspectives together toward a more stimulating, attractive, and productive workplace. A more professional workplace leads to a better quality of employment life. Such a higher quality of life for your employees leads to a higher quality of work — a very nice benefit for any business putting a culture of professionalism to work.