7 Benefits of Conflict Resolution in the Workplace for Managers

In our daily work lives, conflict often feels as inevitable as a morning cup of coffee, though far less welcome. Across all industries, managers and team leaders encounter situations where clashing personalities, competing goals and misunderstandings disrupt productivity and morale. When not managed well, these conflicts can erode teamwork and collaboration, escalating manageable disagreements into deep-rooted divides that fracture teams and derail projects.

Environments where conflict is allowed to escalate may not only become very stressful, but can also face various potential consequences, such as a higher turnover rate, lowered employee engagement and stunted growth. In light of such potential outcomes, it is evident that the benefits of managing conflict may extend beyond maintaining peace and harmony. It’s about harnessing and redirecting energies from disputes toward improving overall output.

Resolving team disputes often demands significant time, money and expertise that may not be available in-house. As a result, many organizations allow conflicts to simmer, sometimes waiting until issues escalate beyond control—leading to disproportionate and aggravated consequences.

But what do managers and organizations really stand to win by investing time and money in employee dispute resolution? For those seeking resolution benefits that are concrete, we will run through some of the reasons that might facilitate a cost-benefit evaluation. 

What Are the Potential Benefits of Conflict Resolution?

1. May Lead to Increased Productivity

This first potential benefit is common. Conflict can be an all-consuming affair, draining not only time but energy as well. When tensions are addressed and individuals feel more satisfied with the outcome, they may spend less time engaged in conflict and become more focused and motivated to work on what really matters. Collaboration between team members may improve as well—even among those who were not involved in the conflict. By fostering a more positive, trusting environment and improving workplace communication, individuals can become more relaxed and cooperative, possibly allowing them to prioritize quality in their work.

2. Ramps Up the Retention Rate

Nobody likes working on a battlefield. According to a study by Randstad, 38% percent of workers want to leave their jobs due to a toxic work culture or one where they don’t feel they fit in. An even larger group (58%) has left jobs, or are considering leaving, because of negative office politics.

Managers should not downplay the importance of conflict resolution. By enhancing their conflict resolution skills, they can help transform their team environment, creating a workplace where employees are more likely to feel satisfied and an organization they may choose to stay loyal to. Companies that successfully retain valuable employees tend to experience less knowledge loss, reduce hiring costs and achieve greater stability over time.

3. Catalyzes Personal Growth and Stellar Leadership

It might sound like a cliché, but conflicts can often be growth opportunities in disguise. When employees learn to manage conflict effectively, they develop valuable skills such as negotiation, emotional intelligence and active listening. These skills can be gained by observing an experienced leader or external facilitator manage conflict, or through targeted training. Individuals who acquire these abilities are not only better equipped to smooth out interpersonal conflicts they’re involved in, but can also assist their team in resolving minor disagreements. More importantly, they develop leadership skills that companies tend to seek, which can help propel them to the next step in their careers.

4. May Enhance Employee Well-Being and Foster Innovation

Stress can be a creativity blocker. One of the potential benefits of resolving conflict is that it can lower stress levels, creating an environment where innovation is more likely to thrive. Employees who feel happy and secure are often the ones who bring forward breakthrough ideas. In a positive, trusting environment, top talent is more likely to be recognized and may feel safer to think outside the box and take calculated risks. This innovative spirit can help keep companies competitive, with a harmonious workplace playing a key role in this success.

5. Helps Mitigate the Risk of Costly Legal Disputes

Effective conflict management can act as a valuable safeguard. One of the primary goals of conflict resolution is to address disagreements early, helping to prevent them from escalating into significant issues that could lead to expensive legal disputes. By managing conflicts proactively, companies may reduce the likelihood of incurring legal costs and protect their reputation from the potential damage of public disputes.

6. Builds Organizational Resilience

Through adept workplace conflict management, organizations learn to bend rather than break under pressure. In teams where conflict is proactively addressed, be it by training or targeted interventions, individuals not only learn the skills needed to keep conflict at bay, but also develop stronger relationships in time. Teams become more resilient to conflict, as well as to other organizational changes. This resilience is key in today’s fast-paced business world, where adaptability is crucial to survival.

7. Sharpens Competitive Edge

This brings us to the last of the advantages of conflict resolution—and one of the most understated. In an increasingly competitive marketplace, the ability to manage and resolve internal conflicts effectively can give businesses a notable edge. With the benefits previously discussed, companies that invest in conflict resolution are often better positioned to compete, sustain and grow. When an organization becomes more productive, innovative and resilient, it is more likely to emerge as an industry leader, outpacing competitors and improving its bottom line.

How to Manage Conflict

Now that we understand the benefits of workplace conflict management, how can organizations navigate the conflict resolution process? Here are some insights on making a positive shift:

Act Proactively

The most important rule in conflict management is to prevent escalation. Direct managers and HR should address conflicts promptly and develop a plan to resolve them. When conflicts arise from individual differences, several strategies can help. You can learn more on this by reading our article “Seven Tips for Interpersonal Conflict Resolution at Work.” 

(…) companies that invest in conflict resolution are often better positioned to compete, sustain and grow. When an organization becomes more productive, innovative and resilient, it is more likely to emerge as an industry leader, outpacing competitors and improving its bottom line.

Train Your Teams

When tensions persist due to a lack of soft skills, training becomes a powerful tool for managing disputes. Individuals who receive training not only improve their ability to handle personal conflicts, but also foster a positive team environment, enabling organizations to fully benefit from effective conflict management.

JAMS Pathways offers conflict resolution training tailored to not only the specific challenges companies are facing, but also their industry, using real life examples of employees to optimize learning of specific conflict resolution techniques. You can discover all of the trainings we have to offer to help enhance you or your team’s conflict resolution skills here.

Train your Leaders

Managers are the first line of defense against conflict, and there are many reasons why organizations should invest in training that allows them to improve their conflict management strategies.

JAMS Pathways offers tailored training that enables leaders to identify the signs of conflict early, as well as to de-escalate and mediate conversations into outcomes that are satisfactory for all parties. You can learn more about all of our leadership trainings here.

Invest in Professional Conflict Resolution

While organizations can take many steps to manage conflict effectively, one of the most strategic decisions is determining when to bring in external professionals. When conflicts are delicate, complex or resistant to internal resolution efforts, involving external conflict resolution professionals can be a sound long-term strategy. This approach can help prevent escalation into legal disputes and reduce negative consequences such as turnover and decreased productivity.

With over 40 years of experience, JAMS offers services designed to resolve sensitive and complex conflicts and has a strong commitment to confidentiality through our Conflict Prevention & Resolution Program. Our skilled neutrals, many of whom bring industry-specific knowledge, are available to assist. We invite you to explore our Team page to find the right facilitator and contact us to learn more about how we may assist your organization.