Discover the true cost of workplace conflict, from lost productivity to employee turnover. Learn how to mitigate disputes and foster a more collaborative work environment.
Wherever humans gather, there will be conflict. The workplace is no exception, and workplace conflict affects employees at all levels. However, the nature and cost of conflict vary significantly depending on work environments—whether employees work in-office, remotely, or in a hybrid setting. According to the Workplace Peace Institute’s 2024 State of Conflict in the Workplace report, workplace conflict affects productivity, morale, and employee retention across all work models, yet the intensity and resolution methods differ.
Workplace Conflict Prevalence Across Work Models
The survey reveals that conflict occurs across all workplace settings, but the frequency and intensity depend on the structure of the work environment:
In-Office Workers: One hundred percent of respondents in traditional office settings reported experiencing workplace conflict at least occasionally. Notably, 81.8 percent reported that conflicts frequently or occasionally escalate before being resolved.
Remote Workers: While conflict exists, remote workers report lower frequency and intensity of disputes. Seventy percent of remote employees experienced conflict only occasionally, and only 10 percent dealt with it daily.
Hybrid Workers: Hybrid work models exhibit a mix of both trends, with 48.7 percent of employees stating they frequently experience workplace conflict, while 20.5 percent reported daily encounters.
Time Lost Due to Workplace Conflict
The financial impact of workplace conflict is evident in the amount of time employees spend dealing with disputes instead of productive work:
In-Office Workers: Seventy-two percent of in-office employees reported spending one to four hours per week addressing conflicts.
Remote Workers: Remote employees spend less time dealing with conflict, with 90 percent reporting up to two hours per week.
Hybrid Workers: Hybrid employees spend an average of three to four hours per week dealing with workplace disputes.
Given that U.S. employees lose approximately $3,216.63 per person per year due to workplace conflict, organizations with a workforce of 500 employees could be losing over $1.6 million annually in lost productivity.
Negative Outcomes of Workplace Conflict
The repercussions of workplace conflict extend beyond lost time; it also affects employee morale, retention, and project success.
Employee Morale: Eighty-eight percent of in-office employees observed that conflict led to decreased morale. Remote employees, on the other hand, reported fewer morale-related impacts, with 60 percent stating conflict did not significantly affect their motivation.
Bullying and Personal Attacks: Sixty-three percent of in-office workers reported experiencing personal attacks, compared to 20 percent of remote workers and 61.5 percent of hybrid employees.
Employee Turnover: Twenty-seven percent of in-office employees left their jobs due to workplace conflict, compared to 20 percent of remote workers and 23 percent of hybrid employees.
Project Failure: Twenty-seven percent of in-office workers reported project failures due to unresolved conflict, compared to 10 percent of remote workers and 20 percent of hybrid workers.
A fractional ombuds program, can significantly reduce the bottom line impact of workplace conflict, as well as significantly enhance employee engagement as a result of enhanced conflict resolution.
Triggers of Workplace Conflict
The top causes of workplace conflict also differ by work setting:
In-Office: Personality clashes (81.8%), lack of trust (72.7%), and workplace stress (81.8%) were the most common triggers.
Remote: Remote employees cited lack of role clarity (80%), hierarchical decision-making (80%), and lack of trust (60%) as primary conflict drivers.
Hybrid: Hybrid employees faced a blend of these issues, with 69.2% reporting personality clashes, 79.5% citing lack of trust, and 69.2% identifying lack of role clarity as major triggers.
Emotional and Organizational Response to Conflict
The Workplace Peace Institute State of the Conflict in the Workplace survey found that emotional responses to conflict varied significantly depending on the organizational working model. In-officer workers report that they were more likely to experience stress (63.6%) and frustration (27.3%) when dealing with conflict. While stress was still present for remote workers, only 60 percent felt demotivated compared to their in-office counterparts. Forty-one percent of hybrid employees reported feeling stressed by workplace conflict, the highest of all groups.
Regarding resolution, remote workers were more likely to directly address issues with their colleagues (60%), compared to 54.6% of in-office workers and 71.8% of hybrid employees.
The Role of Leadership and Workplace Conflict Resolution Policies
Conflict resolution strategies also differ based on work environments. Only 27.3 percent of in-office employees reported that their organizations had formal conflict resolution policies, leaving many employees without structured avenues for resolution. Twenty percent of remote employees stated their company had a formal policy, which may explain why conflicts are less frequent but still unresolved in some cases. And, 30.8 percent of hybrid employees indicated the presence of a conflict management policy, but nearly 50 percent were unsure if such a policy existed.
Furthermore, only 36.3 percent of in-office workers, 20 percent of remote workers, and 25.6 percent of hybrid employees rated their direct managers as highly skilled in conflict resolution.
The Cost of Unresolved Workplace Conflict
The data from the Workplace Peace Institute’s 2024 survey highlights the substantial financial, emotional, and operational costs of workplace conflict. While conflict is an inevitable part of any workplace, organizations must take proactive measures to mitigate its negative effects:
Implementing Formal Conflict Resolution Policies: Companies should clearly define procedures to address workplace disputes, particularly for hybrid and remote workforces.
Providing Leadership Training: Developing emotional intelligence and communication skills in management can help address conflicts early before they escalate.
Encouraging Direct Conflict Resolution: Employees should feel empowered to address conflicts professionally, reducing reliance on HR or escalation.
Enhancing Work Culture: Fostering trust, clear communication, and role clarity can significantly decrease the triggers of workplace conflict.
By recognizing the differences in conflict across work models and implementing targeted solutions, such as a fractional ombuds program and/or an increased focus in conflict intervention and conflict management training, organizations can reduce the cost of workplace conflict while fostering healthier, more productive teams.
Workplace Peace Institute is an organization systems design and research firm that is singularly focused on creating workplace cultures where people thrive. Workplace Peace Institute supports small to mid-sized businesses in optimizing employee engagement, maximizing organizational productivity, and improving profitability by infusing human security and dignity as foundational attributes of their business model. Our Leadership Academy supports leaders in honoring basic human needs and dignity needs in the workplace, so they can actualize human potential in the workplace. The online Leadership Academy optimizes competencies in human behavior, communication skills, conflict resolution, and Diversity, Equity, Inclusion and Belonging to create highly engaged workplaces where basic human needs and dignity are consistently honored. All our courses are offered online and can be customized for in-person workshops and seminars.