Reducing the cost of workplace conflict

November 28, 2024

At the 2024 UK Mediation conference ACAS provided facts and figures of the financial costs of workplace conflicts  last year. The figures were mind boggling.

Following the autumn 2024 budget, costs pressures are set to mount on employers. There will be increased NI contributions, increases to the national minimum wage and of course cost of living.

According to ACAS, 4 in 10 staff involved in conflicts at work unsurprisingly experience reduced motivation. 56% report stress and anxiety. 10% take time off as a result with productivity falling 15% – 30%. Again, unsurprising. The financial impact for employers is increased costs of ill health absence, employment litigation, costs of dismissals, resignations and legal costs.

The level of workplace conflict is set to increase. Changes via the new Employment Rights Bill will bring more issues. This new legislation is poised to implement from day 1, the right for employees not to be ordinarily unfairly dismissed. During an initial period of employment or probationary period it is likely that a light touch process will still be needed before a fair dismissal can happen if the new recruit isn’t right for the role. The details are awaited and the Bill is already being consulted upon.

The costs for employers in managing workplace conflict is set to increase. The new laws will allow employees the protection to assert their rights. Though not necessarily a bad thing in itself, the issue for employers is how to handle this in the workplace. Grievance processes are often divisive and disciplinary hearings often leave the parties cold. Many employers and owner managers prefer a more direct approach to talk straight to their staff. That’s fine so far as it goes as long as the conversations stay on the right side of legal. For less experienced managers, they may be daunted by having difficult conversations and not had any conflict training at all or very little. Most managers are not trained in handling difficult conversations.

How are you going to handle conflicts from day 1 and will your managers be prepared? Or, will you reach straight  for a formal process with your new recruit?

There is a way that brings together the type of straight forward addressing of issues that often resonates. It uses a modern ACAS compliant process to resolve many workplace disputes and involves mediation. Of course there will always be serious issues now and then where a formal process is required.

The good news is that smart employers have time to prepare a strategy now to reduce the costs of conflict at work using a modern tried and tested early resolution process.

For further details and an initial confidential conversation don’t hesitate to get in touch.