What is Conflict Resolution?

Conflict is an inevitable aspect of life, whether in our personal lives with family or friends or at work with our colleagues, leaders or clients. At work, people from a multitude of backgrounds and personalities are brought together with the purpose of working towards shared business goals.

Conflict in the workplace is a natural, everyday part of human interaction. as not all conflict is unproductive or unhealthy, disagreeing or arguing with a coworker can be beneficial. Unfortunately, workplaces often handle conflict poorly, and many conflicts or disputes are left unresolved. Therefore, resolving conflicts and conflict management is one of the biggest challenges workplaces face.

Working from home and hybrid working due to the pandemic has not changed this fact. Learning how to deal with it becomes the pivotal factor in dealing with conflict – when left unresolved, it often has damaging, long-lasting effects on the overall health of the working environment.

What is work conflict?

Simply put, a conflict is a disagreement between two or more people. Of course, not all disagreements need to be ‘handled’ or dealt with by the organisation. For example, people can disagree about how a particular task should be done or where to go for afternoon Friday drinks.

This is regular interaction. It does not call for any intervention. so when does a situation qualify as a workplace conflict that does require intervention? Action needs to be taken when the parties blame each other for causing the conflict, they are emotionally impacted by the conflict, and the issue is impacting their optimal work performance. When these factors are present, it is time for the organisation to get involved.

Does this conflict need intervention? A quick check

If you are not sure whether a disagreement has crossed the line into a conflict that needs managing, ask whether:

• The parties are blaming each other for causing the problem
• One or both people are visibly emotionally affected by it
• The issue is starting to impact work performance

If the answer to any of these is yes, it is worth stepping in rather than waiting to see if it resolves itself.

Common causes of Conflict

Some of the leading causes of conflict are:

• Personality differences (Personality clashes and ego battles are the leading cause of workplace conflict internationally (49%)
• Poor communication
• Employment conditions (the most common types of conflict in Australian workplaces are around employment conditions, supervisor/line manager decisions, personality conflicts and uncivil behaviour (Van Gramberg, Teicher, Bamber & Cooper, 2017)
• Unclarified roles or job descriptions
• Perceived inequities of resources
• Workplace behaviours regarded as uncivil such as bullying and harassment
• Differences over work methods or goals or differences in perspectives attributable to age, sex or upbringing.

Your legal obligations under Australian law

Handling workplace conflict well is not only good management practice. In Australia, it is also a legal responsibility.

Under the Fair Work Act 2009, every modern award and enterprise agreement must include a dispute resolution term. This sets out a process for resolving disagreements about matters arising under the award, agreement or National Employment Standards, usually starting with a discussion at the workplace level, then escalating to more senior management, and finally to the Fair Work Commission if it remains unresolved.

Employers also carry duties under work health and safety legislation. This legislation requires a safe workplace, and this extends to psychological health. Unresolved conflict, bullying and harassment are recognised psychosocial hazards, which means employers are expected to take reasonable steps to identify and manage them, not simply wait for a formal complaint. Safe Work Australia publishes detailed guidance on managing these risks.

The Fair Work Commission also has the power to make anti-bullying orders under Part 6-4B of the Fair Work Act, and its jurisdiction over workplace sexual harassment disputes was expanded in 2023. Failing to address conflict adequately can expose an employer to unfair dismissal claims, general protections applications and workers compensation claims, on top of the human cost.

None of this means every disagreement needs a lawyer involved. It does mean that having a clear, consistently applied process for managing conflict is not optional if your workplace is covered by a modern award or enterprise agreement, which most Australian workplaces are.

Cost of Workplace Conflict

There are many costs to an organisation. For example, in the UK, it is estimated that 9.7 million employees experienced conflict in 2018 to 2019 (Acas, 2021). Workplace conflict in the US is estimated to cost $359 billion annually in lost time and productivity (CPP Global Human Capital).

The most serious costs of conflict are the following:

1. High employee turnover – When conflict is ongoing or extreme, workplaces will lose talented employees to other organisations, especially with a strong job market. For example, in the UK, an average of 485,000 employees resign annually due to conflict. The cost of recruiting replacement employees amounts to 2.6 billion pounds each year, while the cost to employers of lost output as new employees get up to speed amounts to 12.2 billion pounds, an overall estimate of 14.9 billion pounds each year (Acas, 2021).
2. Absenteeism and presenteeism – Employees will often choose to steer clear of work to avoid dealing with conflict or to delay a confrontation. Others may come to work but not perform to their usual standard. In the UK, 874,000 employees are estimated to take sick leave each year due to conflict, at an estimated cost to their organisations of 2.2 billion pounds (Acas, 2021). Most of those suffering from stress, anxiety and/or depression due to conflict continue to work. this ‘presenteeism’ harms productivity, with an annual cost estimated between 590 million and 2.3 billion pounds (Acas, 2021).
3. Grievances, complaints and lawsuits – Issues should be preferably handled informally, if possible, and from the outset to avoid things from spiralling out of control. This reduces the cost to both the workplace and the employees involved in the conflict. it also reduces the need to arrange independent, third-party interventions costing more time and money. For example, 30% of a typical manager’s time is spent dealing with disputes. (Queensland Government).
4. Emotional stress & anxiety –conflict will often escalate out of control, and the emotional cost is often enormous and goes hand in hand with an increase in grievances, a high turnover of staff, absenteeism and a toxic workplace.
5. A toxic workplace – conflict left to fester will ultimately permeate throughout the organisation, causing a fracture in relationships, distrust, low morale and toxicity.

What is conflict resolution? 

Conflict resolution is the process of ending disputes and reaching an agreement that satisfies all involved parties. It is not about avoiding disagreements but rather about facilitating discussions to increase the parties’ understanding of the situation and to help them control their emotional responses. Conflict resolution is an important skill for all leaders and managers to attain.

Whether it is the parties themselves attempting to resolve the conflict or a manager/HR or team leader, the following steps are a necessary part of the process.

Common conflict-handling styles

Before running through the steps involved in resolving a dispute, it helps to understand that people naturally default to different styles when conflict arises. The Thomas-Kilmann model, developed by Dr Kenneth W. Thomas and Dr Ralph H. Kilmann, identifies five:

• Avoiding – sidestepping the issue altogether. Occasionally appropriate for trivial matters, but left unchecked in the workplace it allows problems to fester.
• Competing – pursuing your own position regardless of the impact on the relationship. Useful in a genuine emergency, but corrosive to trust if used routinely with colleagues.
• Accommodating – giving way to the other party’s needs. Fine for minor issues where the relationship matters more than the outcome, but overused it can suppress genuine problems.
• Compromising – both parties give up something to reach a middle ground. Works well when a timely resolution matters more than a perfect one.
• Collaborating – working together to find an outcome that meets both parties’ needs. This is generally the most durable approach for workplace disputes, though it takes more time and a genuine willingness to engage from both sides.

Recognising which style you or the other party is defaulting to is often the first step towards choosing a more productive approach.

Whether it is the parties themselves attempting to resolve the conflict or a manager/HR or team leader, the following steps are a necessary part of the process.

i. Preparation Stage

• Understanding the conflict.
• Identifying the issue, the facts, and the frequency.
• Asking: does it fit the definition of a conflict?
• Arranging a safe space to hold the meeting.

ii. Holding the meeting

• Tell the parties you have a conflict situation and that you are going to help them resolve it.
• Set ground rules such as maintaining respect and non-interruption of the other party.
• Get the parties’ perspectives and understand each of their needs.
• Focus on the problem, not the individual.
• Listen. Do not interrupt.
• Ask questions and ensure both sides of the conflict have been aired and understood.
• Ask a lot of open questions and TED (tell, explain and describe) questions.
• Be empathetic. remember, perception is 100% of the conflict. This involves getting rid of labels, biases and assumptions.
• Discuss several possible options and outcomes which will hopefully help all parties find a solution they can support.

iii. Agree on a solution and a plan of action

• Agree on a mutually convenient compromise and create an action plan, designating specific actions for each party.
• Schedule a follow-up meeting to see if the proposed solution/s and plan of action are effective.

When to bring in a professional mediator

Not every conflict resolves itself through an internal conversation. It is worth engaging a professional mediator when:

• Direct discussions between the parties have already failed
• The dispute is affecting team productivity or morale more broadly
• The working relationship needs to be preserved, not just the immediate issue resolved
• There are allegations of unfair treatment that fall short of requiring a formal investigation
• A manager or HR team member is too close to the situation to remain genuinely neutral

A mediator does not take sides or impose a decision. Their role is to guide both parties towards a resolution they have reached themselves, which tends to make the outcome more durable than one handed down from above.

Mediation compared with managing it internally

If your workplace has reached the point where internal conversations are not landing, book a consultation with Segal Conflict Solutions to talk through whether mediation, investigation or facilitation is the right next step.

Benefits of Conflict Resolution

1. Identifying the actual problem

Often the most minor of disagreements can eventually blow up into major conflict. Issues must be addressed from the outset so things don’t fester and ultimately blow up. Managers must look for patterns of workplace behaviour that need to be addressed and nip those in the bud.

2. Increased problem-solving skills

Discussing issues and brainstorming options and solutions will develop problem-solving skills. When people are open to sharing their views, this results in solutions from diverse perspectives where ideas and solutions flow from healthy conversations.

3. Building strong relationships

Not dealing with conflict only suppresses the issues and ultimately destroys relationships. If employees feel comfortable using their voices to raise concerns and talk about issues, this can only strengthen their relationship with others and the organisation as a whole.

4. Improved Productivity 

Conflict that is handled well will free people to focus on their jobs rather than on tensions in the office, leading to tighter productivity, efficiency and morale.

When conflict crosses the line

Most workplace conflict is a normal, manageable part of working with other people. Some of it is not.

Bullying is defined under the Fair Work Act as repeated, unreasonable behaviour directed at a worker or group of workers that creates a risk to health and safety. A single disagreement or a one-off blunt comment does not meet this bar, but a sustained pattern, such as intimidation, exclusion, public humiliation or unreasonable work demands, may.

Sexual harassment is prohibited under the Fair Work Act, and workers can apply to the Fair Work Commission for orders to stop bullying, or to deal with sexual harassment disputes.

If what you are dealing with looks like this rather than a straightforward disagreement, the response needs to be different from standard conflict resolution. That means documenting behaviour, dates and witnesses, following your organisation’s formal complaint process, and seeking advice from HR or an accredited investigator before assuming mediation is the appropriate path. Segal Conflict Solutions’ investigations service exists for exactly this situation.

Free resources

If you want to go further into a specific area, Segal Conflict Solutions has two free resources that build on what is covered here:

• Workplace Bullying White Paper
• Harmonious Hybrid Workplace eBook

What do Apple, Sony, Facebook, the Parliament of Australia and Google have in common? They are powerful brands that have all seen themselves in the headlines for harassment, bullying and discrimination within the workplace.

Sadly I could add many more to this list of organisations that have invested in cultivating the perception of their brand rather than their workplace culture.

A great brand score is not always reflected in its workplace culture. Poor or toxic workplace cultures have dire consequences and significantly cost employers. Employees who report high levels of toxic behaviour at work are eight times more likely to report burnout symptoms. Those experiencing burnout are six times more likely to quit their job in the short term.

Many of the organisations mentioned have publicly stated they are making amends and intend to fix cultural issues. Rarely do they detail how and when they will do this.

Up until the last couple of years, they’ve been able to use their brand as a trump card. Despite the claims, court cases and news coverage, people still want to work there because the brand looks good on their CV.

But slowly, the tide is turning. With sites like Glassdoor and HerWerk—specifically aimed at women- an organisation’s inner workings are being revealed. I have also heard of recruiters not touching candidates with certain well-known employers on their resumes because that brand is seen as negative within industry circles even when the public perception isn’t so.

This is something employers need to be hyper-aware of, especially as many are reporting they are struggling to fill vacancies.

So how can organisations ensure their culture is as important as their brand perception?

It starts at the top
Leadership must be fully invested and on board with creating a strong and healthy workplace culture because it flows from the top. Behaving with integrity, emotional intelligence and being willing to quickly make hard decisions that remove toxic personalities.

Empower HR
HR’s role has expanded dramatically since 2020, with employee well-being and mental health being top of the list. Yet most are drastically unequipped to deal with this. Invest in training your people and creating policies that empower them to manage conflict and other difficult workplace situations.

Ask people how you are doing
Feedback is one of your most valuable tools for crafting a culture that works. Regularly ask for your staff’s perspective and opinions in one-on-ones, larger meetings, pulse checks and culture reviews. Show them you are listening and taking action based on what you’re hearing.

If you’re wondering if you have a toxic workplace or want help creating a culture to be proud of, book an obligation-free appointment.

Company culture, or organisational culture, may seem intangible but it is very impactful on organisational performance. Without a strong workplace culture, your employees are not going to be as high-achieving as you need them to be.

How does one measure culture? You probably have an idea of the workplace culture you’re aiming for. But how do you know if you’re achieving it? Measuring your workplace culture is critical for knowing where you are now and helps you identify the steps to get you where you want to be.

It enables you to assess the link between your culture and behaviours – is it actually being lived across your organisation? At all levels? Or is it just words on a page that gets discussed twice a year and then forgotten again?

Your workplace culture is the thing that keeps employees sticking around. Of course, they have to enjoy the actual work they do, but the people, environment and attitude around that work make or break an organisation.

Three Solutions to Measure Workplace Culture

1. Employee surveys

To track and measure improvements, send these at regular intervals across the year. If you want to hone in on a specific driver and take a snapshot – for example, on workload or reward and recognition – you can send these as one-off pulse surveys.

You can use various tools and platforms, but something as simple as Survey Monkey can be sufficient. Keeping the survey anonymous will usually yield more fruitful and honest results. Still, you can ask participants which business unit or area they are in to know where grievances are occurring.

Focus on things that drive employee engagement like meaningful work,  strong leadership,  belonging, autonomy, freedom of opinion, and opportunity for growth.

2. Third-party measurement tools

Third-party tools may be more advanced and flexible than tools you have designed internally. Participants can feel greater confidence that their submission will remain anonymous, leading to more honest responses. Third-party tools can often segment your workforce and give insights into any sub-cultures that have developed within your organisation.

3. Focus groups/exit interviews

Don’t underestimate the power of hearing verbatim from your employees. They can shed light on a company’s culture and reveal unseen positive and negative insights that can be used to do more of what’s working and fix what isn’t.

Tips

• Keep focus groups manageable – maximum of six and a cross-section of employees.
• Exit interviews should always be one-on-one.
• Communicate psychological safety, confidentiality and respect.
• Ask for stories, behaviours and examples, not opinions or rumours.
• Listen empathically.
• Let the participants know you are recording the conversation or taking notes in advance.
• Analyse data. You are looking for trends and patterns.

Use this information to develop action plans to improve your workplace culture.

“When we fail to set boundaries and hold people accountable, we feel used and mistreated” – Brene Brown.

Over the last two years, organisations and their employees have had no choice but to be flexible—moving in a myriad of directions, navigating the unknown territory of hybrid and remote work and the constant change of those events.

The pandemic has caused stress and overwhelm for many, if not all, workplaces. It has also taken a toll on how we work and communicate, resulting in feelings of resentment, uncertainty and a loss of trust and connection.

One of the most common issues I have seen is the issue of micromanagement. In some cases, managers unconsciously feel a lack of control when employees work from home, resulting in micro-managing behaviours. These can cause serious issues in an organisation, sending messages of mistrust from both manager and employee, resulting in decreased performance and engagement.

Why boundaries matter

Boundaries are limits that a person creates for themselves. They guide the people around them to behave in psychologically safe and appropriate ways. When we create and communicate our boundaries, we respect ourselves and ask others for respect.

When others respect our boundaries, trust is built. Therefore, it’s essential for healthy working relationships.

However, it is very common for people to shy away from saying no to something or asserting a boundary. This is due to being concerned about being perceived as selfish or not a team player.

It all starts and stops with the leaders of an organisation. They must first lead by example and respect the boundaries of team members. Training should be provided for all on how to deal with situations where boundaries are breached, and a psychologically safe space must be cultivated, so employees feel empowered to communicate when this happens.

Three tips on how to set boundaries  

1. Define your boundaries

We all have different values, expectations and life experiences, so everyone’s boundaries will differ. Include prompts to encourage self-reflection to identify boundaries.

2. Share them with the people around you

The people in your personal life will know you infinitely better than your coworkers. Having your coworker email you five times a day or ask you personal questions about yourself will start causing resentment to build up. Support your teams to share their boundaries, so they can be aware and mindful of what each other finds acceptable or not.

3. Allow flexibility in some situations

Getting an email from your manager at 11 pm may seem to be crossing the line of what is reasonable, but it is always a good idea to be flexible when the circumstances call for it. For example, if they have asked for some vital information for an early morning meeting the next day, crossing the line may be acceptable. However, when it is to send some information “urgently” for no given reason, this is perhaps where the line is crossed. How you navigate this issue depends on your situation and the type of boundary being crossed.

Avoid unnecessary conflict and miscommunication

Setting boundaries and being clear on your expectations for your team will build trust and create stronger working relationships based on respect. If and when a boundary is breached, it’s important for everyone to feel equipped to deal with it.

One way to do this is to provide communication training. Workshops like these can help employees tackle difficult conversations and extinguish, identify and manage potential conflicts before they become disputes. They encourage communication and transparency and enhance your work environment—creating a better culture for all.

Saranne Segal is the Director of Segal Conflict Solutionsin Sydney Australia. She is a workplace mediation and investigation expert and has worked as a lawyer previously.