How Workplace Drama Can Impact a Company’s Bottom Line: How to Avoid It

What is Workplace Drama?

Deirdre McCarthy Gallagher and Genesis Fisher of JAMS Pathways, writing for HR Daily Advisor, describe workplace drama as a pervasive challenge that can disrupt morale, productivity, and team cohesion. This drama may take many forms, such as gossip, resistance to change, or persistent complaints that drain energy from an organization’s mission.

One example they highlight involves a leadership transition in which an entrenched employee resisted organizational changes by withholding participation in meetings and undermining the leader’s efforts. Such behavior, the authors note, is often a calculated attempt to stall progress and create tension.

Gallagher and Fisher suggest that addressing workplace drama involves leaders adopting thoughtful and deliberate responses that may help address the immediate issue and set a positive tone for the organization.

How Workplace Drama Affects the Bottom Line

Gallagher and Fisher emphasize the potential measurable costs of workplace drama, citing findings from the Myers-Briggs Company’s 2022 “Conflict at Work” study. Employees reportedly spend over four hours per week dealing with workplace conflict, equating to more than 200 hours annually per person—time that could otherwise be used to advance organizational goals. This lost productivity may impact an organization’s bottom line and employee performance.

The authors also point to Gallup’s 2023 State of the Global Workplace Report to highlight broader implications of disengagement. Over half of employees surveyed were described as disengaged or actively seeking new opportunities, which may contribute to retention challenges and significant turnover costs. Gallagher and Fisher stress that fostering a drama-free workplace may help reduce these burdens while promoting engagement and collaboration.

Key Strategies to Avoid Workplace Drama

Gallagher and Fisher outline practical strategies that may help minimize drama in the workplace and promote a healthier organizational culture. Leaders are encouraged to set a positive example by avoiding gossip, owning their mistakes, and modeling constructive behavior. Creating a culture of trust through team-building initiatives and open communication is another key approach. The authors recommend establishing clear guidelines for respectful communication and implementing conflict resolution strategies to provide employees with a framework for navigating disputes.

To further address workplace drama, the authors suggest providing institutional support, such as resources for employee well-being and conflict resolution training. They also note the potential benefits of seeking external assistance, such as involving a conflict resolution professional to handle complex disputes. By combining these efforts, organizations may foster an environment where collaboration and productivity thrive.

Role of Leadership in Managing Conflict

According to Gallagher and Fisher, leadership plays a critical role in managing workplace conflict effectively. Leaders are often under scrutiny, and their responses to workplace drama may significantly influence organizational morale and cohesion. They emphasize the importance of calibrated and thoughtful actions, noting that impulsive reactions can escalate tension rather than address it.

The authors illustrate this point with the example of a leader facing resistance from an employee during a leadership transition. Instead of reacting emotionally, the leader invested in relationship-building, open communication, and carefully crafted interventions. Gallagher and Fisher suggest that leaders who focus on long-term strategies may help address drama while fostering trust and alignment within their teams.

Long-Term Benefits of a Drama-Free Workplace

Gallagher and Fisher conclude by emphasizing the potential transformative benefits of reducing workplace drama. Organizations that actively address these issues may see improvements in employee engagement, enhanced team communication, and overall productivity.

A collaborative and supportive work environment may also help retain top talent, reducing the costs associated with turnover and disengagement. The authors highlight that fostering a drama-free culture offers not only financial advantages but also long-term stability and resilience. By minimizing the impact of workplace drama and encouraging a culture rooted in respect and collaboration, organizations position themselves for sustained success.

For a more detailed exploration of this topic, read the full HR Advisor article here.