CPP_Global_Human_Capital_Report_Workplace_Conflict

First and foremost, workers at all levels must learn to accept conflict as an inevitable part of their work
environment – the study found that an overwhelming majority (85%) of employees at all levels experience
conflict to some degree. Furthermore, we found that U.S. employees spend 2.8 hours per week dealing with
conflict, equating to approximately $359 billion in paid hours in 2008. 1 The question for management, therefore,
is not whether it can be avoided or mitigated; the real concern is how conflict is dealt with. If managed
improperly, businesses’ productivity, operational effectiveness, and morale take a major hit, as evidenced in
our finding that 27 percent of employees have witnessed conflict morph into a personal attack, while 25 percent
say that the avoidance of conflict resulted in sickness or absence from work.
On the other hand, when channeled through the right tools and expertise, conflict can lead to positive outcomes,
such as a better understanding of others, improved solutions to problems or challenges, and major
innovation. Roughly three quarters of workers reported positive outcomes that resulted from conflict – results
that in all likelihood would not have been produced if conflict was not initiated.
For more than five decades, CPP has consulted with companies of all sizes and in all industries. Our experience
concurs with the results of this study, which show that the most common denominator to successful conflict
resolution is formal training. Countries like the US and Brazil, who report the highest levels of conflict management
training, also observe the highest amount of positive outcomes from conflict. Conversely, countries that
report the lowest levels of training report the lowest amount of positive outcomes. We have found, furthermore,
that training is most effective when it includes the use of psychometric instruments and an increased
understanding of personality – the number one cause of workplace conflict.
Despite this, however, our most striking – and alarming – finding was that the majority of employees have
never received conflict management training. Furthermore, our concern is magnified by the discovery that
stress and workload – two factors certain to increase in a dynamic economy – are the second and third most
common causes of conflict. Companies, therefore, that choose to ignore conflict management are risking
exposure to a myriad of negative consequences which may dramatically diminish bottom-line performance.
On the other hand, organizations that implement effective strategies for dealing with conflict will position
themselves for tremendous gains in the years to come.
1
Based on average hourly earnings of $17.95, seasonally adjusted, non-farm workers. Bureau of Labor Statistics, May 2008.