Conflict in the workplace: the ripple effect on small businesses

What impact does conflict in the workplace have on small businesses?

Your small business relies heavily on a tight-knit team where collaboration and camaraderie are vital for success. Conflict can cast a shadow over a business. The atmosphere becomes tense. Team morale can take a nosedive.

When left unresolved, conflict in the workplace can have an even greater effect on a small business. Unchecked tensions can fester and create a workplace rife with toxic behaviour like harassment or bullying. This puts the well-being of your employees at risk, as well as exposes your business to legal and reputational repercussions.

For employees, the impact of conflict in the workplace can be detrimental to productivity and fulfillment. Even those who aren’t directly involved in the conflict can be impacted by the negativity, leading to increased stress and decreased job satisfaction.

Your top talent, often the backbone of a small business, can become disillusioned if conflict remains unaddressed. Unresolved conflict can be perceived as a lack of action from leadership, sending the message that employee concerns aren’t a priority. Before long, your top performers may choose to look for a healthier and happier place to work.

How to resolve conflict in the workplace

If you’re experiencing tension in your small business, the time to resolve it is now.

Addressing concerns quickly and effectively is critical to maintaining a positive work environment and culture. Here are eight key steps to help your business resolve conflict:

Understand conflict happens

Workplace conflict is inevitable. Recognizing this is critical for you to effectively manage any tensions that arise. Clear communication and processes can help treat conflict as a regular occurrence, not something peculiar to ignore.

Prevention

The best kind of conflict in the workplace is the conflict you can quash before it starts. By outlining proactive measures like open communication, offering conflict resolution training, and establishing grievance processes, you can address issues before they escalate.

Reflect on the conflict

There are different sides to every story. When looking for a resolution, actively listen to all the parties involved, determine what the issues mean to yourself and to them, and consider what’s on the line for everyone.

Encourage open communication

Ask questions to everyone involved and consider their answers. This will help you understand and address the issue at the core of the conflict.

Enlist a neutral third party

Sometimes a fresh set of eyes and ears can make all the difference. A neutral party can help clarify the core conflict and prevent any escalation. If there are any conflicts that need deeper attention, there are people who can help, like a conflict management practitioner.

Consider how to handle the conflict

There are many ways to deal with conflict in the workplace, like facilitated discussions, mediation, conflict coaching, arbitration, and litigation. Figure out which one works best to manage each specific issue.

Make a call

Use the knowledge you’ve gained in the previous steps to take action. This will address the conflict at hand, as well as show your employees that you prioritize their concerns and well-being.

Do a post-mortem

With the conflict resolved, take the time to reflect and examine how it was handled. What did you learn? Would you do anything differently? How can you prevent this issue moving forward?

Know you’re not alone

Meeting conflict in the workplace head-on is more than good practice — it’s integral to the success of your small business. By prioritizing conflict resolution and building a culture of open dialogue, your business can protect your team dynamics, retain your talent, and maintain a healthy work environment.

Our Consulting Services team is equipped to help you address challenges and ensure the long-term success of your business. To learn more about how your small business can address conflict in the workplace, reach out to Hali Van Vliet, Partner, Consulting, at [email protected].