The Costs of Workplace Conflict

By Rachel Davis

Principal Associate

ACAS (The Advisory, Conciliation and Arbitration Service) has published a new report, Estimating the Costs of Workplace Conflict, which estimates that workplace conflict costs UK employers £28.5bn each year, an average of just over £1,000 for every employee.

This estimate is based on the total costs to organisations in handling conflicts in the workplace, including informal, formal and legal processes, as well as the cost of sickness absences and resignations.

Workplace conflict inevitably leads to stress and anxiety amongst staff which has a detrimental impact on productivity. 

The report identifies that effective conflict management is crucial in maximising productivity and efficiency across the workforce. Dealing with complaints at an early stage, before the irretrievable breakdown of employment relationships, can save businesses significant costs.

As organisations adapt to a new normal following the coronavirus pandemic, problems and complaints are more likely to rise to the surface, and it is important that businesses have appropriate strategies and procedures in place in order to manage and resolve workplace conflict effectively.

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