In a time when polarization is seeping into nearly every corner of life and workplace dynamics are growing more complex and challenging, conflict is becoming not just inevitable but alarmingly routine. Altogether, U.S. workers collectively experience 190 million acts of incivility each day, according to the Society for Human Resource Management (SHRM). More than half (58%) of these incidents occur within the workplace itself. The data paints a sobering picture: workplace conflict is not only common, it’s accelerating.
Worse, that acceleration may not be clear to HR or organizational leaders: 90% of HR professionals report having had mostly positive interactions with co-workers, but only 67% of U.S. workers said the same, according to a SHRM report. SHRM has also found that employees who rate their workplace as “uncivil” are three times more likely to be dissatisfied with their jobs.
These issues come with real costs. One analysis estimates that, in aggregate, U.S. companies lose $359 billion annually due to workplace conflicts. The costs arise largely from reduced productivity, worse employee performance, and—in extreme cases—litigation resulting from the conflict and consequent communication problems, as well as increased absenteeism and turnover as workers try to escape the conflict.
The good news: with the right tools, training, and help, employers can dramatically reduce the incidence of workplace conflict and, along the way, reduce related costs. “Unmanaged employee conflict is perhaps the largest reducible cost in organizations and probably the least recognized,” writes the Mediation Training Institute, which has found that managers can end up spending as much as 30% to 40% of the workday just resolving conflict.
The HR Playbook: Using Policy to Prevent and Resolve Conflict
In response to this growing crisis, HR professionals are rethinking their strategies, not just reacting to workplace conflict but preventing it through thoughtful, flexible HR policies.
One simple but surprisingly effective tool is etiquette training. ResumeBuilder reports that over half of employers now offer workplace etiquette classes to address conversational and behavioral expectations. These programs provide employees with a shared framework of acceptable behavior, reducing the ambiguity that often leads to offense or missteps.
“As we observed a decline in interpersonal skills and professional conduct in the workplace, we recognized a growing need for this type of training,” says Young Pham, Co-Founder and financial advisor at Bizreport and respondent to the ResumeBuilder survey.
Beyond etiquette, many HR teams are introducing conflict resolution training as a core part of their professional development offerings. When done well, such programs don’t just teach employees how to manage disagreements, they yield tangible benefits. For instance, a study conducted by the Mediation Training Institute at Eckerd College found a 63% reduction in conflict hours, averaging 88 hours saved per employee per year, following the implementation of a proprietary conflict resolution model.
One Size Doesn't Fit All: Flexibility in Policy Design
While structured training and clear policies are essential, flexibility is just as important. Not every conflict needs the same solution. In some cases, a direct conversation between parties may suffice. In others, a mediated discussion or even a formal investigation may be necessary.
To guide these decisions, HR leaders might look to the Thomas-Kilmann Conflict Mode Instrument (TKI), developed by Dr. Kenneth W. Thomas and Dr. Ralph H. Kilmann. This model outlines five strategies for dealing with conflict—avoiding, competing, accommodating, compromising, and collaborating—each appropriate for different scenarios.
For example, a minor scheduling dispute—say, two team members wanting the same day off—might best be resolved through either accommodation (if one employee is more flexible than the other) or compromise (perhaps both agreeing to shift their vacation days slightly).
But when deeper issues like equity or power imbalance are involved, compromise often isn’t enough—and can even reinforce existing harm. In these cases, more formal intervention may be the only productive route. For instance, if a high-performing employee consistently receives fewer growth opportunities than their peers despite equal qualifications, HR or other leaders may need to step in with a formal investigation. Alternatively, a collaborative approach could bring diverse voices together in a structured dialogue—such as a facilitated roundtable—to discuss perceived inequities and co-develop inclusive policies.
The key is that HR policies should provide not just rules but also conflict resolution frameworks, so managers know when to escalate, when to mediate, and when to step back. These frameworks, captured clearly in policy, can then empower teams to apply the appropriate conflict resolution strategy depending on the stakes, ensuring that every situation is handled fairly and thoughtfully. Just make sure to provide conflict resolution training so workers know how and when to implement these strategies.
The Upside of Good Workplace Conflict Resolution and HR Policies
Perhaps the most compelling reason to invest in reducing workplace conflict through strong HR policies isn’t just about avoiding the costs—it’s about unlocking the potential. When managed effectively, conflict can actually serve as a catalyst for innovation, stronger collaboration, and personal growth. Constructive disagreement encourages teams to challenge assumptions, explore diverse perspectives, and arrive at more thoughtful, creative solutions. In fact, teams that are skilled at navigating conflict often report higher levels of trust, engagement, and resilience. With the right support—through clear policies, training, and leadership—workplace conflict can evolve from a liability into a powerful force for progress.
“Conflict isn’t always all bad,” writes Soren Kaplan Ph.D., author and affiliate at the Center for Effective Organizations at the University of Southern California. “In fact, it’s often a natural part of finding innovative solutions to challenging problems.”
A Call to Awareness and Action
As we mark Workplace Conflict Awareness Month, it's time for HR leaders and business owners to look beyond the symptoms and address the root causes of workplace conflict. Through clear HR policies, inclusive practices, and robust conflict resolution training, organizations can reduce tension, foster collaboration, and create workplaces where people can thrive—even when they disagree.
Partnering with a Professional Employer Organization can provide the necessary expertise and support to navigate this intricate landscape, allowing businesses to focus on growth and success while ensuring compliance with all applicable laws. For more information how a PEO like CoAdvantage could help you, learn more about our HR Administration services.
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