The staggering cost of workplace conflict

Industry News & Insights Management Workplace_Conflict_thumb

Does your organization have squabbling employees and departments?

Discord in the workplace may be costing you a lot more than you think, at least that’s the story according to this infographic from, which claims workplace conflicts cost U.S. businesses a whopping $359 billion each year. To figure out what it’s costing you specifically, I borrowed the following simple formula from Niagara Street Consulting.

    How much time/week, on average, do you spend dealing with workplace conflict (interpersonal, your own, organizational, etc.)? ____________ hours/week

    What is your hourly rate of pay? $__________

    Multiply #1_______ x #2___________ = $__________/week

    Multiply #3__________ x the number of weeks you work each year_____ = $________ total dollars spent by you, alone, in conflict management.


The website points out that this calculation does not include other hidden costs such as loss of productivity and employee turnover.

But the infographic does address some of these things.

Some highlights:

    • The main causes of workplace conflict are opposing priorities, lack of communication, and misunderstanding about the urgency of tasks.

    • A majority of people say there are too many people involved in individual projects.

    • A majority of people say nobody knows what they are supposed to be doing.

    • Four out of five people say communication with management is ineffective.



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