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:
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.