Workplace conflict costs UK employers just over £1,000 for every employee

Acas, has published analysis which estimates that workplace conflict costs UK employers £28.5 billion every year, an average of just over £1,000 for every employee.

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

The report shows that nearly half a million employees resign each year as a result of conflict and that handling disagreements and complaints early before employment relationships are damaged can help save businesses money.

Acas’s new report ‘Estimating the costs of workplace conflict’ estimates that 9.7 million employees experienced conflict in 2018/2019.

The annual costs to employers identified in the report include:

• £11.9 billion from resignations
• £10.5 billion from disciplinary dismissals
• £2.2 billion from sickness absences

Workplace conflict can lead to staff stress, anxiety or depression which has a knock-on effect on productivity. The report identifies effective conflict management as critical in maximising productivity and efficiency in organisations.

It also suggests investing in effective and early resolution to repair employment relationships. This can include managers identifying problems early to help prevent unnecessary resignations or dismissals and employees engaging with their managers, HR or trade union representatives.

The report highlights that conflict will be more likely as organisations adapt to a new normal following the coronavirus (COVID-19) pandemic. Problems suppressed during the crisis will start to rise to the surface and will need effective responses from organisations.

Access the report here.