- 10-15% of the working time is<\/strong> used for conflict resolution<\/strong> in every company.<\/li>
- 30-50% of the weekly working hours of executives are spent directly or indirectly with frictional losses, conflicts, or the consequences of conflict<\/strong>.<\/li>
- The average cost per bullying<\/strong> case is 60,000 euros.<\/strong><\/li>
- 1% of employee costs pa<\/strong> are lost for unprocessed conflicts.<\/li>
- Approx. 25% of sales<\/strong> depend on the quality of communication<\/strong>.<\/li><\/ul>\n\n\n\n
<\/p>\n\n\n\n
Functional or dysfunctional conflict costs?<\/h2>\n\n\n\n
KPMG (2009) divides the conflict costs into functional<\/strong> and dysfunctional conflict costs<\/strong>. Positive costs (e.g. for conflict management or further development of the company) are referred to as functional conflict<\/strong> costs. They are an investment that you can expect a positive ROI for. <\/p>\n\n\n\n
Negative costs without any benefit for the company as dysfunctional conflict<\/strong> costs. They include costs for turnover, decrease in productivity, loss of clients, decrease of motivation, absenteeism etc. <\/p>\n\n\n\n
Conflicts always cost money. However, companies can influence how high those costs are and determine how they want to invest their money. The question is: As a company, do I want to control expenses myself and see a positive output for my investment?<\/strong><\/p>\n\n\n\n
Examples for functional or positive costs of conflicts<\/h3>\n\n\n\n
- Implementation of an In-house conflict management system<\/li>
- Mediation<\/li>
- Consulting<\/li>
- Training for leaders and employees<\/li>
- Organizational development<\/li><\/ul>\n\n\n\n
Examples for dysfunctional or negative costs of conflicts<\/h3>\n\n\n\n
- Turnover<\/li>
- Absenteeism<\/li>
- Mistakes<\/li>
- Loss of clients and\/or orders<\/li>
- labor law-related sanctions<\/li>
- counterproductive behavior<\/li>
- decrease of productivity<\/li>
- increase of duration of projects<\/li>
- project failure<\/li>
- difficulties to recruit qualified employees <\/li><\/ul>\n\n\n\n
How to calculate the costs of dealing with conflict in your own company<\/h2>\n\n\n\n
If you want a quick estimation of how much conflict in your team might be costing you, click here to try out the conflict cost calculator from resologics. <\/a><\/p>\n\n\n\n
If you want to work with your own numbers, you could use the KPMG-model to determine how high the costs are: KPMG (2009) defines 9 categories of conflict costs. In 2011, Unternehmerschaft D\u00fcsseldorf (a German entrepreneurship association) published several real-life examples of how to calculate the cost of conflicts using these categories. <\/p>\n\n\n\n
Here’s one example: <\/p>\n\n\n\n
![\"\"](\"https:\/\/dardo-consulting.com\/leadership\/wp-content\/uploads\/sites\/21\/2020\/09\/screenshot-costs-of-conflict-example-kpmg2.png\")
<\/figure>\n\n\n\n
- 30-50% of the weekly working hours of executives are spent directly or indirectly with frictional losses, conflicts, or the consequences of conflict<\/strong>.<\/li>