IMPACT OF UNRESOLVED CONFLICT

WORKPLACE IMPACT

• Lost revenue as a result of missed deadlines, late deliveries, etc.
• Employee replacement costs, including termination costs, recruitment, etc.
• Increased expenditure resulting from quality problems (restocking, replacement orders, parts re-work, etc.)
• Loss of market share as a result of "missed windows of opportunity"
•  "Ramp-up" time required for replacement employees to become effective contributors
• Increased supervision or management activities
• Passive-aggressive behaviors exhibited by disgruntled employees
• Loss of effective management resulting from loss of credibility
• Miscommunication with other groups resulting from confusion
• Poor image within the industry or the marketplace
  

Workplace Conflict Statistics 
(http://www.workdyn.com/tools-ConflictStats.html)

When cooperation and collaboration are low, effects are seen in productivity, customer service, organizational and individual stress, unscheduled absences, sick leave use, medical claims, retention, and recruitment ability.

Here are some statistics that reflect the cost of conflict in organizations:

• 30-42% of managers' time is spent reaching agreement with others when conflicts occur (Watson, C. and Hoffman, R., "Managers as Negotiators," Leadership Quarterly 7 (1) 1996).
• It is estimated that more than 65% of performance problems result from strained relationships between employees -- not from deficits in individual employees' skill or motivation.
• It costs 1.5 times the position salary to replace the employee in it (Drake Beam Morin, 2000).
• It is estimated that sexual harassment claims alone are costing each Fortune 500 company $6.7 million per year, with costs for smaller companies being proportionately burdensome.
• Recent studies find that more than two-thirds of managers spend more than 10% of their time handling workplace conflict and 44% of managers spend more than 20% of their time in conflict-related issues.
• A number of surveys indicate that people in all occupations report the most uncomfortable, stress-producing parts of their jobs are the interpersonal conflicts that they experience on a daily basis between themselves and co-workers or supervisors.
• From 1990 to 1995, the number of charges with the EEOC alleging illegal discrimination in employment increased 46.75% (SHRM White Paper, 1995).

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PERSONAL IMPACT

• Effects on mental health (e.g. depression, eating diaorders, being abusive towards others, alcoholism, anxiety).
• Illnesses associated with stress (e.g. cancer, heart disease, chronic pain)
• Relationship stressors (e.g. selfish demands, disrespectful judgements, angry outbursts)