The cost of workplace conflict

A new report from ACAS estimates that workplace conflict costs UK employers £28.5bn every year, an average of just over £1,000 for every employee. Close to 10 million people experienced conflict at work. Of these, over half suffer stress, anxiety or depression as a result; just under 900,000 took time off work; nearly half a million resigned, and more than 300,000 employees were dismissed.

A new report from ACAS estimates that workplace conflict costs UK employers £28.5bn every year, an average of just over £1,000 for every employee. Close to 10 million people experienced conflict at work. Of these, over half suffer stress, anxiety or depression as a result; just under 900,000 took time off work; nearly half a million resigned, and more than 300,000 employees were dismissed.

Susan Clews, Chief Executive of ACAS states that early intervention in conflict saves money, time and promotes better wellbeing: the new analysis provides employers with a new reality check. The Covid crisis underlines the importance of waking up to conflict at work as an issue that should be considered from board level downwards.

There are 3 strong messages to take from this report. Firstly, ‘conflict competence’ is an essential ingredient in good management and it has a positive impact on organisational effectiveness and performance. Secondly, there is a critical time to intervene. This is before conflict reaches formal workplace procedures, since at this point there is a greater likelihood of resignations, presenteeism and sickness absence. And, thirdly, while conflict can be very bad and damaging to people and a business, it can also be creative. Conflict that asks questions and challenges prevailing ways of doings things, does give us the opportunity to create fairer and more inclusive workplaces in the future.

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