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Workplace conflict is inevitable, but how managers handle it makes all the difference. Whether addressing performance issues, interpersonal disputes, or resistance to change, difficult conversations can be stressful for everyone involved.
Without adequate mediation skills, minor disagreements can escalate into team dysfunction, pose legal risks, and lead to financial losses. In fact, studies show that workplace conflict costs UK businesses nearly £30 billion annually, with employees spending an average of 2.8 hours per week dealing with disputes instead of working productively.
This guide will equip you with proven mediation techniques to navigate workplace conflicts effectively. You’ll learn:
By mastering these skills, you’ll be able to turn difficult conversations into opportunities for growth, improve team communication, and create a more harmonious workplace and drive a high-performing culture.
Unresolved workplace conflicts can have profound financial and operational repercussions. A study by that workplace conflict costs UK employers nearly £30 billion annually, averaging almost £1,000 per employee.
These costs stem from a range of factors, including:
By developing effective mediation skills, managers can proactively address conflicts and thereby reduce associated costs and also fostering a supportive and harmonious work environment.
Employees failing to meet agreed expectations can impact productivity, morale and team dynamics.
Some common performance issues include:
A 2020 Gallup poll found that disengaged employees cost businesses approximately 18% of their annual salary in lost productivity.
⇢ Set Clear Expectations - Share your expectations with your employees and ask whether they have any concerns about being able to meet those expectations within the allotted time. Provide regular and specific feedback alongside reasonable support with the aim of avoiding defensiveness.
⇢ Encourage Self-Reflection - Check-in regularly with your employees to see how the assignments are progressing; are they encountering any challenges or do they need any assistance?
⇢ Collaborate on Solutions - Offer mentoring or coaching support to help them learn, grow and develop. Provide adequate training and resources to enable them to improve themselves and their output.
Personality clashes, misunderstandings and breakdown in communication can contribute to a toxic work environment and promote interpersonal conflict.
A University of Sheffield report found that nearly 60% of workers involved in workplace conflict go on to suffer from stress, anxiety and depression.
⇢ Facilitate a Neutral Conversation - Choose a private and neutral environment to assist both parties to share their concerns and listen to each other's point of view without interruptions. Avoid fixing the problem yourself and encourage both parties to search for common solutions.
⇢ Promote Active Listening - Encourage each party to listen without interrupting. Summarise and reflect back their views and concerns to demonstrate you are listening and in doing so modelling good active listening.
⇢ Develop Joint Agreements - Ensure that any agreements or solutions the parties come up with are clear, practical and workable. Establish very clear behavioural expectations moving forward and an option to review progress at a set period.
Employees facing organisational change can sometimes resist due to fear of the unknown, discomfort with new processes and general uncertainty.
Studies indicate that companies with effective change management are up to 6 times more likely to meet their business objectives.
⇢ Actively Listen to and Acknowledge Concerns - Instead of getting frustrated by resistance and dismissing it, engage in learning conversations with employees to better understand their concerns and involve them in the transition process.
⇢ Be Transparent and Share Reasoning - Sharing all the reasons behind the requirements for change, including the benefits can reduce anxieties and promote mutual understanding.
Consider taking an introductory mediation course to learn more about how these skills can help your organisation.
Ignoring minor disagreements and interpersonal conflicts can carry serious legal implications.
Jenson v Eveleth Taconite Co. was the first U.S. class-action sexual harassment lawsuit that arose because management ignored complaints about workplace harassment. The company faced prolonged litigation, reputational damage, and material financial penalties.
Lessons for Managers
⇢ Ignore conflicts at your peril. The legal risk of doing so could be catastrophic.
⇢ Failure to act early can lead to widespread corporate reputational damage.
⇢ Proactively using mediation skills can prevent issues spiralling out of control.
Mediation encompasses a multitude of different skills all designed to promote productive dialogue. To handle difficult conversations effectively, managers must develop these 5 mediation skills:
Show employees their views are heard and valued, actively listening to someone is a profound gesture of respect, listen to experienced mediator Turlough O'Donnell SC explain why.
Picasso once said that 'Emotions are the little captains of our soul and we ignore them at our peril'. It's vital that you learn to recognise and appropriately manage emotions during a difficult conversation. Here's a powerful strategy for dealing with anger, watch legendary author, mediator and academic Ken Cloke as he presents this strategy.
Keeping the parties responsible for the problem and the solution, helps keep them accountable but also increases the chances that they'll find a sustainable way forward. It means that as the manager you have to stay neutral and not take sides - it's difficult but powerful.
Avoid attributing blame and instead focus on joint problem solving. See what lessons can be learned from the past rather than trying to establish who was in the wrong. Keep everyone focused on the future and how to work together to avoid repeating the same mistakes.
Make sure everyone is clear on the process for the conversation. It should have a start, middle and an end and as the manager you are responsible for managing the time and moving the conversation through each phase from opening to agreement.
Click the link to learn more about the benefits of mediation
🚫 Ignoring conflicts - No one enjoys dealing with conflict but left ignored these issues can escalate.
🚫 Taking sides - It's hard to remain impartial when dealing with members of your team but remaining neutral is vital for your credibility as a manager when resolving these matters.
🚫 Avoiding difficult conversations - Burying your head in the sand won't make the problem go away. More often than not, confronting these conversations early, using the skills mentioned above is always the best option.
The University of Sheffield Study, cited in this article, alongside a comprehensive report carried out by ACAS, found that workplace conflict costs British business around £30 billion, annually with signifcant losses from:
📉 Lower productivity
📈 Increased absenteeism
📈 Higher employee turnover
✅ Reduced staff turnover - When employees feel genuinely listened too, they feel valued and less likely to walk out of the door.
✅ Happy and productive teams - Open, transparent communication improves working relationships which leads teams to function effectively and efficiently.
✅ Reduced stress and absenteeism - A positive workplace culture where employees feel supported, have clearly defined expectations and a transparent process for dealing with issues and challenges will promote a stress free and collaborative environment.
📌 Prepare the groundwork - Collect all relevant information before initiating discussions. Ensure both parties are aware of the purpose of the conversations, understand the process involved and are clear on what your role as the manager in this situation will be.
📌 Set informal tone - Ensure that both employees appreciate and understand the informal nature of the mediated conversation. Find a private and relaxed environment for the conversation and avoid using formal language or terminology. Make it conversational in tone.
📌 Remain impartial - Avoid taking sides and be aware of any bias that you might have over one side. Keep the employees responsible for the problem and the solution and don't step in to offer solutions, use open questions and active listening to tease options and solutions out of your team members.
📌 Encourage open dialogue - Ensure both side get the chance to give their perspective and avoid interruptions. Use open questions, summarising and reframing as techniques to promote dialogue and reassure the parties, if appropriate, that the process and information shared will be kept confidential.
💡 When informal mediated conversations fail - If you've attempted to resolve the issues through an informal mediated difficult conversation then it might be time to bring in a professional.
💡 When there are potential legal implications - In circumstances where there have been accusations of harassment or discrimination then it's probably wise to refer these matters onto HR who will then be better placed to advise on the most appropriate course of action.
💡 If the problem seems systemic - If you discover that the issues that surface impact a wider set of the workforce population then get advice from your HR Business Partner who will know what to do.
Mastering mediation skills for managers transforms difficult conversations into opportunities for resolution and growth. By addressing performance concerns, workplace conflicts, and resistance to change proactively, managers can create a healthier, more engaged, and high-performing workplace.
Take action today. Strengthen your mediation skills and foster a conflict-free, productive team environment by getting in touch with us to learn more about how Mediator Academy could help your organisation deal with conflict more effectively.
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