Have you already had an argument at work? Or even a long-lasting argument? You are not alone. According to a study by the Hernstein Institute for Management and Leadership in Austria, conflicts in the workplace cost around 15 per cent of daily working time in Germany - and even more for managers. It can be assumed that the number of unreported cases makes this figure even higher. This is because conflicts are still a taboo subject: people often prefer to remain silent or ignore them. I think we should sensitise employees, managers and companies. We should consciously recognise conflicts and tackle the associated burdens and eliminate the resulting costs.
I took a closer look at the economic damage. My findings:
- Lost hours.
Around 15 per cent of the daily working time is dominated by conflicts. In an eight-hour working day, we are talking about more than one hour. For managers, it is as much as 30 to 50 per cent of their weekly working time. If we assume a 48-hour week, a manager spends 14.4 to 24 hours a week dealing with conflicts. - Sickness certificates and absences.
There is a correlation between absenteeism and conflicts. If an employee is absent for one day, companies can expect costs of 100 to 400 euros. In cases of bullying, the average cost is between 25,000 and 50,000 euros. The German Trade Union Confederation reckons that bullying alone causes up to 25 billion euros in economic losses every year. - The constant coming and going.
At least half of employees cite conflicts as the reason for termination. If employees are dismissed by their line manager, conflicts are the reason in 90 per cent of cases. And not to forget: Recruitment is expensive. It costs around 7500 euros to hire a normal skilled worker. For skilled workers and managers, the figure is between 25,000 and 200,000 euros.
Conflicts always cost money. That is a realisation.
The second finding is that companies can influence the level of their conflict costs. Through conflict moderation.
I now train conflict moderators. I teach them how to set up a structured conversation, minimise emotionality and create understanding. They de-escalate. And I can say that the costs for a conflict moderator are significantly lower than those caused by a conflict between employees. Especially as I see the work of the moderator as gradually eliminating themselves from the company.