Employee conflict is an inevitable part of any workplace. However, its impact can be far-reaching, affecting not only team dynamics but also a company’s bottom line. In fact, HR Acuity’s annual benchmark report reveals that .025% of a company’s workforce will submit an employee relations complaint each year. Though this may seem like a small percentage, the costs associated with addressing these complaints can be significant.
An informal study of 100 workplace investigators found that it costs, on average, $25,000 to address and resolve each employee relations complaint. When you consider how these costs can quickly accumulate, it’s clear that the financial burden of employee conflict can take a considerable toll on your company’s budget.
But what if there was a way to reduce these costs while fostering a more harmonious workplace? The key lies in using data to spot potential conflict before it escalates into a formal complaint. In this video, Deb Muller of HR Acuity, Kim Roa of Workday, and Emtrain’s Janine Yancey discussed how to spot trending conflicts from your case management system
By leveraging data, HR professionals can identify which managers and teams are at higher risk for employee relations issues. This proactive approach allows Employee Relations (ER) teams or HR Business Partners (HRBPs) to step in and provide the necessary support to these teams before conflicts arise or formal complaints are made.
Consider this: if you can pinpoint problem areas early and provide managers with the tools and support they need to handle issues before they escalate, the likelihood of costly employee relations complaints decreases. This approach doesn’t just save money — it creates a more productive, engaged workforce.
Let’s break it down: If your company addresses an average of 10 employee relations complaints annually, the cost could easily exceed $250,000. However, by using data to identify at-risk managers and teams, you can intervene early and prevent even half of these complaints from escalating to the formal complaint stage. That’s $125,000 in savings for your company — and that’s just for 10 cases.
Now imagine scaling this effort across your entire organization. The potential for savings is immense, and you can achieve this with fewer resources. A smaller, well-equipped team can manage more cases, provide better support, and resolve issues before they turn into costly claims. This doesn’t just benefit your company’s financial health — it can also boost employee morale and create a more positive work environment.
By using data to spot risks early, you’re not only saving money but also demonstrating a proactive approach to employee conflict management. This strategy can make your CFO very happy, as it delivers a clear financial benefit to the organization while maintaining a positive work environment. Investing in preventive measures and data-driven tools means avoiding high costs in the future and ultimately creating a more resilient workforce.
In conclusion, addressing employee conflict doesn’t have to be a reactive, costly process. By using data to identify potential risks and providing support before complaints are filed, you can save your company thousands of dollars, reduce employee dissatisfaction, and foster a more collaborative and productive workplace.
At Emtrain, we provide the tools and training needed to help your teams manage conflict effectively. By incorporating proactive conflict resolution strategies, you can reduce the number of complaints and enhance your company’s culture.