The cost of conflict in the workplace, and how to avoid it
Posted on 17th May 2021
A report from ACAS has worked out how much conflict in the workplace costs organisations each year - and the amount is staggering.
Conflict in the workplace is not only stressful for all involved, it also costs organisations around £28.8 billion, according to the report 'Estimating the costs of workplace conflict'.
The cost to employers includes:
£2.2 billion lost due to sick leave taken because of conflict.
up to £2.3 billion in reduced output from unhappy workers.
£365 million in managing formal grievances and £2 billion in managing grievances.
£2.6 billion each year in recruiting replacement employees, and an additional £12.2 billion in reduced output during recruitment and training.
£282 million of management time spent dealing with potential and actual litigation.
£264 million spent on legal fees.
£225 million in compensation awarded against employers per year.
Avoiding conflict not only benefits employees, but saves organisations huge amounts of money. So, how can employers avoid conflict?
Easy to Read Policies and Procedures
Getting your policies and procedures in place to reduce conflict could save your business a significant amount of money, time, business interruption and damage to morale. Having effective and up to date grievance and disciplinary procedures that are easy to understand and apply will help to resolve a conflict swiftly before it gets out of hand.
If you do face a tribunal claim, your policies can go some way to protect you by helping to show that you have met your legal obligations and acted reasonably, reducing the risk of being ordered to pay compensation.
Get advice early
If you are struggling to manage conflict within your organisation, don't wait until it is out of control to get advice. We can advise on whether your grievance and disciplinary policies are sufficient, and help you to understand whether you have met your obligations. If necessary, we can help to negotiate and implement a settlement before the matter gets to tribunal.
Get in touch for help with conflict in your workplace.
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