Two thirds of employees involved in disagreements at work don’t feel it was resolved – but businesses believe they’re doing enough. How can HR close this critical gap?
Imagine walking into an office where tension hangs thick in the air, conversations are strained and colleagues avoid each other. This is the reality for many employees today, despite companies’ claims that they are equipped to handle workplace disputes.
The CIPD’s How employers are tackling bullying and harassment at work report found that just a third (36 per cent) of employees who experienced conflict at work in the past year felt it had been fully resolved. For many, the issue lingers, with 30 per cent saying it had been only partly resolved and 34 per cent claiming it hadn’t been resolved.
This paints a picture of lingering tension that continues to impact not just the individuals involved, but the broader team dynamic and workplace culture. Despite this, four in five (81 per cent) employers feel they are doing enough to avoid and manage workplace bullying and harassment – indicating a gap between perception and reality when addressing these issues effectively.
The consequences of unresolved disputes go far beyond individual dissatisfaction. According to a 2021 Acas report, conflict can cost UK businesses up to £28.5bn – the equivalent of more than £1,000 per employee. In addition, Acas says almost 10 million people experience conflict at work each year, with more than half reporting stress, anxiety or depression as a result.
Conflict, when left unchecked, can also lead to higher turnover rates, with employees either disengaging or leaving organisations altogether. In fact, the CIPD’s 2024 Good Work Index found that employees who experienced conflict were twice as likely to say they would leave their job in the following year (33 per cent, compared to 16 per cent of those who had not reported conflict).
“Unresolved conflicts at work tend to have a lasting emotional and psychological impact on employees because it leaves them feeling stuck, helpless, hurt and unable to change their situation,” says Anna Shields, director and co-founder of mediation consultancy Consensio. She points out that the distress can be “overwhelming”, frequently leading to anxiety, resentment and mistrust, and that these emotions may worsen over time, potentially causing health issues, disrupting sleep patterns and damaging relationships more widely.
One key factor behind the persistence of unresolved workplace disputes appears to be communication breakdowns, and the fact that people managers can be the cause or the cure. The CIPD’s bullying report found that most employers believe line managers would resolve conflict effectively (75 per cent) and at an early stage (78 per cent); however, this view was undermined by half (49 per cent) admitting that managers could cause conflict in their teams – rising to three in five (61 per cent) in public sector organisations.
Furthermore, poor management training in dispute resolution continues to be an issue. According to the Chartered Management Institute, three in five (59 per cent) managers admit they have not received sufficient training on how to handle workplace conflict effectively.
David Liddle, president of the People and Culture Association and chief executive of The TCM Group, says sending managers on a difficult conversations course does not equate to giving them the skills and capabilities required. “We have to train our managers in conflict resolution skills, and we have to build conflict management into their job descriptions and role profiles so that the management of conflicts and disagreements is a common managerial action,” he explains.
In addition, a survey by Magenta Associates found that two thirds (64 per cent) of employees had been subjected to workplace conflict. Looking into the most likely causes of the conflict in the workplace, the research identified the main reasons as opposing personality types (47 per cent), lack of communication (43 per cent) and management styles (38 per cent).
“There is often a significant gap between how employers and employees perceive conflict resolution in the workplace,” explains Jess Anderson-Ramshall, HR director at JourneyHR. This disconnect, she says, can arise because of delays in addressing concerns and poor communication. “While many employers have procedures and policies in place to manage conflict, they sometimes overlook the importance of the human element, which is crucial for resolving issues promptly and preventing escalation,” she says.
Anderson-Ramshall believes that when problems arise, companies must respond quickly and with emotional intelligence, making employees feel heard and supported. “This helps foster psychological safety, which is vital in maintaining a healthy work environment,” she adds.
Teresa Boughey, chief executive of Jungle HR and founder of Inclusion 247, says people managers play a crucial role in workplace dynamics and, while a key part of their role is to drive performance and foster cohesion, they can “inadvertently contribute to the conflict”.
“Managers must constantly balance the operational needs of the business with the needs and expectations of employees, which can create tension. This challenge can often be amplified during times of economic uncertainty, particularly organisations have to implement cost-cutting measures such as recruitment freezes and reductions in travel and training,” she explains.
According to Boughey, managers may exacerbate disputes by failing to address or even recognise their own biases. “A lack of awareness in how they communicate, assign work or recognise achievements can unintentionally lead to exclusion, breeding resentment,” she says.
However, Boughey suggests that managers must understand impact of their actions and decisions on team dynamics to create a workplace that and emotionally aware.
While the data highlights a significant issue, it also points to a potential solution: better conflict management training for leaders and clearer channels for employees to raise concerns. According to Acas research, organisations that implement early dispute resolution strategies such as mediation and dialogue experience a 20-25 per cent drop in formal grievances.
One of the most effective strategies for resolving workplace conflict is early intervention, according to Tim Jones, partner and head of employment law at Higgs: “Mediation can play a critical role here, offering a neutral space for employees and employers to openly discuss their issues before they escalate.”
Jones adds that the gap between employer and employee perceptions of conflict resolution is a “wake-up call” for many organisations and that it highlights the need for a more “nuanced approach – one that goes beyond compliance and addresses the emotional and psychological needs of employees.
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