Many companies engage in conflict resolution training for their managers, executives, and human resources professionals. The businesses that spend the time and energy preparing their workers to solve problems do so for many different reasons. Not only does conflict resolution make for a happier company, but it also saves money in the long run. The businesses that are reluctant to address the issue of conflict management are falling behind, and opening themselves up to three ways in which conflicts in the workplace hurt their bottom line:

1. Productivity
Conflict in the workplace negatively affects productivity, not just for the employees engaged in the conflict, but for the company as a whole. Conflict comes from many different sources. Sometimes issues arise between coworkers, or between an employee and management. In other scenarios, there can be conflict between the company and a client, the company and a supplier, or between executives and board members. The time and energy that are wasted on recurring conflicts are extremely costly. Time is money, and time spent by human resources, management, and employees on disputes is wasted money. If left unchecked, conflicts can grow for years, and they can eat away at time that should be spent instead on company business. With comprehensive conflict management training and a company dispute resolution plan, you can address disputes before they start to cut into your bottom line.

2. Legal Costs
Everyone knows that lawsuits are expensive. What most people don’t realize, however, is that even in a lawsuit where you win, you will often still have to deal with the expense associated with defending your company. In many situations, time and money are spent on legal fees to negotiate with the other side, resulting in a settlement that could have been reached outside of the legal system if there had been an alternative dispute resolution plan in place. Whether the potential litigant is an employee of the company or an outside business with which the company does work, it is crucial to have mechanisms in place to address conflict before it develops into litigation.

3. Customer Retention and Public Relations
If the conflict is between the company and one of its clients or suppliers, it is crucial to have a conflict management plan in place. When a customer has a complaint or an issue with your company, you may not be able to go back and change the situation that caused the dispute, but the way your company handles the client’s complaint can make a big difference. Ignoring the situation will only make the client more determined to avoid your company, whereas openly addressing and discussing the problem will earn you respect, trust, and, hopefully, a second chance to win back the customer. In addition, good problem-solving skills can save your company from public relations headaches down the road. Even if your company is not at fault, prospective customers and clients don’t generally like to hear the news that you are involved in a lawsuit brought by a former customer or former employee. Alternative dispute resolution is a preventative measure that can keep conflict from gnawing away at your bottom line.

To learn conflict resolution skills that you can use at work and in your personal life, please visit our Alternative Dispute Resolution Workshop page to learn more about upcoming in-person and instructor-led online sessions.

To improve your negotiation skills and get the results you want while negotiating, please visit our Become a Powerful Negotiator Workshop page to learn more about upcoming in-person and instructor-led online sessions.

To gain skills to handle difficult conversations and difficult people with confidence, please visit our Dealing With Difficult People Workshop page to learn more about upcoming in-person and instructor-led online sessions.