The Hidden Costs of Conflict

Ever wonder what a simple workplace conflict costs an organization in dollars? How about a more commonly messy one? Let’s do the math.

A relatively simple feud between two department managers for three short months – a relatively MINOR, and not atypical, conflict scenario – has almost $300,000 in hidden costs:

hidden-costs-of-minor-conflict

Assumptions for Calculations.

Even if you disagree with some of these estimates, you’re still looking at more than ONE MILLION DOLLARS in hidden costs and inefficiencies, per year, PER CONFLICT! That’s $1,000,000/year/conflict.

Stop and think about what that means for a moment.


❝An enormous amount of management time, often estimated at 25 to 40 percent, is spent addressing employee conflict. That’s one to two days every week.❞

Washington Business Journal


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