As the Founder of Kinflow, a DEI consultant, and a TEDx Speaker, Adriana Morvaiova's passion lies in empowering individuals and communities to transform conflict into connection.
Adriana explores climate conflict in the workplace and its silent cost in her latest View for Sync NI.
Recent figures have revealed a concerning trend within the Northern Ireland Civil Service, where dignity-at-work investigations have more than doubled in the past year. Yet, conflict remains a taboo topic in many organisations, often avoided because of its negative connotations. But here’s the hard truth: ignoring workplace conflict doesn’t make it disappear. Instead, it festers beneath the surface, eroding trust, morale, and productivity. Leaders need to ask themselves - would you rather have difficult conversations about conflict now or face the fallout of a damaged reputation later?
Being unaware of formal grievances does not mean your workplace is conflict-free. It often means employees feel unheard, unsupported, or too fearful to speak up. The price of this reactive stance can be astronomical - not only in legal fees and lost productivity but also in reputational damage that can take years to repair. This article will examine the financial and operational impacts of workplace conflict and highlight why a proactive approach is crucial to mitigating these risks.
The Financial Toll of Conflict
Workplace conflict is far from a minor inconvenience; it is a significant drain on resources. According to a report by the Chartered Institute of Personnel and Development (CIPD), the annual cost of workplace conflict to UK organizations is estimated at £28 billion, equivalent to approximately £1K per employee (CIPD, 2020). This staggering figure includes costs related to staff turnover, absenteeism, legal fees, settlements, and diminished productivity.
In Northern Ireland specifically, public sector bodies are particularly vulnerable to these costs. The NI Civil Service’s doubling of dignity-at-work investigations points to deeper issues that, if left unaddressed, could escalate into formal grievances, tribunal cases, or even public scrutiny, all of which come with substantial financial and reputational repercussions.
The Hidden Costs: Morale, Trust, and Efficiency
Beyond the direct financial expenses, unresolved conflicts erode workplace morale and trust. A culture of conflict avoidance or poor resolution processes can lead to disengagement, increased stress, and low productivity. Research indicates that employees involved in conflict are more likely to experience mental health issues, take extended leaves of absence, or exit the organisation altogether (Acas, 2019).
Legal Implications and Rising Case Numbers
The significant rise in NI Civil Service investigations underscores a legal risk that leaders cannot afford to ignore. Employment tribunals are both costly and time-consuming. In 2022-2023, the average cost of defending a tribunal case was estimated to exceed £8,500 per case, excluding settlement costs (UK Government Report, 2023). Additionally, adverse outcomes can result in compensation payouts that far exceed this figure, particularly in cases involving harassment, discrimination, or constructive dismissal.
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Proactive Leadership: The Key to Conflict Prevention
The data serves as a wake-up call for decision-makers: being reactive is no longer sufficient. A proactive approach involves creating a workplace culture that prioritizes early intervention, transparency, and open communication - without shying away from the word "conflict." Avoiding the term only perpetuates avoidance behaviours, whereas embracing it helps normalize productive conversations. At the heart of this effort is the integration of Diversity, Equity, and Inclusion (DEI) principles, which foster a sense of belonging and safety for employees from all backgrounds. When DEI is aligned with conflict confidence training (I have the solution for you!), it empowers individuals to navigate differences with respect and resilience.
Key actions that organisations can take include:
The rise in dignity-at-work investigations within the NI Civil Service is a symptom of a broader issue that extends beyond the public sector. The financial and human costs of unresolved conflict are simply too great to ignore. By prioritizing early intervention, robust conflict management processes, and a culture of open dialogue, leaders can protect their organizations from costly legal battles and foster a healthier, more collaborative work environment.
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