Violence and conflict has become part and parcel of our everyday existence and has, unfortunately, also seeped into the workplace. Not only does violence and conflict in the workplace affect employees; it also costs the company a packet! Here’s why…

How does conflict and violence incur costs?

In a cost estimate of conflict and violence, the following factors play a role:

    • Wasted time. As we all know, time equals money and the hours spent to resolve conflict or violent situations can therefore be measured in monetary terms. Also, conflict and violence cause post-traumatic stress disorder and employees will need a time of rest and recuperation that will cause more working hours to be lost. Some companies are even forced to close down for a day or two after a particularly violent incident
    • Productivity declines when people are stressed out or anxious and the decision-making process is negatively influenced by these conditions. If it is an ongoing conflict that involves a power struggle between certain groups, even more time is wasted and when bad decisions are taken it costs the company
    • Loss of skilled employees. People want to feel safe in their work environment and they expect management to keep the workplace safe. Ongoing conflict and violence is one of the most decisive factors for leaving. Every employee that leaves means additional costs to the company to replace that person and to compensate for loss of productivity while doing so
    • Restructuring work. Ongoing conflict between employees sometimes makes it necessary to restructure work and this may cause a less efficient workflow
    • Theft, damage to equipment and sabotage or “go-slow” strikes are more common when there is violence and conflict in a company, especially if it exists between workers and management. Work hours are lost and expensive equipment has to be replaced
    • Soaring health costs arise, especially when people are injured or suffering from stress-related psychological disturbances. This may result in absenteeism, loss of productivity and lowered job motivation. Insurance premiums may also take a hike.

Is there a solution?

Yes, managers and supervisors who have undergone conflict resolution training should be able to spot signs of distress and abnormal behaviour in their immediate staff. A formalised plan or EAP will be a great help. EAP counsellors are trained in critical incident stress debriefing within the first two hours of a particularly violent incident to help employees vent their feelings and normalise their reactions. This will help employees cope and heal from the trauma.

 

Sources
Dana, D. 1997. Managing differences: how to build better relationships at work and home. Retrieved from: http://www.mediationworks.com/mti/bookcvr.htm
Dana, D. Measuring the financial cost of organizational conflict. Retrieved from: http://www.mediationworks.com/mti/bookcvr.htm
Expert commentary: Violence in the workplace, Part Two. Retrieved from: http://www,discoveryhealth.com