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Home Leadership The Moment Conflict Starts Costing You

The Moment Conflict Starts Costing You

Manager and employees in argument

by Louisa Meehan, Director, Woodview HRM; PT Lecturer, UCD Quinn & Smurfit Business School

Interpersonal workplace conflict does not begin at the point of a formal complaint. It normally starts quietly, in the insignificant moments — a comment that lands badly, a meeting that excludes someone unexpectedly, a frustration that is not voiced but deeply felt, a breakdown in communication. By the time HR becomes involved, the original issue is often buried beneath layers of emotion, assumption, and defensiveness.

Individuals get set in their position, how they see the situation and how they have voiced that both internally and with their trusted allies many times long before they formally raise the issue. It is for this reason that so often when addressing a complaint about bullying in the workplace or inappropriate behaviour the initial reaction from the accused is ‘I had no idea….’, they are totally confused whilst the person who raised the complaint is bamboozled as to how they could not know.

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Early intervention conflict resolution is built on a simple but powerful premise: the earlier a concern is addressed, the easier it is to resolve constructively and repair relationships before it has gone too far. Leaders that act early protect productivity, culture, and credibility not to mention the significant negative impact conflict has on the individuals involved.

Perception Drives Escalation

Workplace conflict begins when one party perceives that another has negatively affected something they value. That perception, whether accurate or not, shapes behaviour. Two employees can experience the same interaction and interpret it entirely differently based on their individual past experiences, personal values, and emotional state. If you don’t believe me, then ask your childhood sibling or best friend about a memory you have and be amazed by how different their experience of it was.

When perceptions are not clarified early, individuals create narratives to fill the gaps. These narratives harden into positions, and individuals with opposing positions which are of importance to them can evolve into interpersonal disputes.

Early conversations interrupt that pattern before it becomes entrenched. It allows us the individuals the opportunity to see things from the other persons perspective – you may have heard the term ‘walk in someone else’s shoes’ well there is good reason for that saying. We can never truly fully walk in another’s shoes, but through listening, empathy and openness we can increase our understanding – once we are fixed in a firm position in my experience it is much more difficult to be open to understanding.

Even as someone who works in supporting others through workplace disputes daily, when I am in a dispute (which thankfully does not happen often) I know I can fall into the trap of having a fixed position. This can look like thinking ‘I am right, they are wrong’, it is very normal to ‘feel’ upset, hurt, disrespected or perhaps even angry about how the other party has treated you. This is very normal, everyone I know has experienced it in some capacity – the trick is to know how to address it quickly, and when that is not working understanding how and when to get help from an independent 3rd party.

Constructive vs Destructive Conflict

It is very important to remember that not all conflict is harmful, in fact I would go so far as to say that some conflict is essential to a healthy workplace culture. Constructive conflict, particularly around tasks or strategy, can stimulate innovation, improve decisions, and strengthen outcomes. High-performing teams where trust exists often encourage debate around ideas and solutions to issues while maintaining respect resulting in stronger relationships by finding common ground.

The problem arises when it becomes personal, it is no longer focused on the task but on the individual. Destructive conflict shifts from issues to identity; it is perceived as a personal attack. Once individuals feel attacked rather than challenged, collaboration declines. Early intervention conflict resolution aims to encourage disagreements remain focused on work rather than personalities. For example, when a mistake is made this is the difference between saying ‘let’s figure out what happened and put a plan in place to do better next time’ versus ‘if you had been doing your job properly this would never have happened, you are so incompetent’. We can all identify these two different approaches and how they make us feel when we are on the receiving end.

The Cost of Unresolved Conflict

The business case for early intervention conflict resolution is compelling. Whilst we don’t have statistics on the financial cost in Ireland, Acas and CIPD in the UK estimated workplace conflict was costing UK employers £28.5bn a year in 2021, the equivalent cost in the republic of Ireland would be around €4.5bn a year. Ask any employer who has had to manage a serious conflict and won’t be shy in telling you the cost it brings to an organisation.

In Ireland, research from the ESRI found job stress more than doubled between 2010 and 2015, rising from 8% to 17%, there is nothing to indicate this number has since reduced if anything my experience working in HR would be that is likely to have increased since then. Emotional demands have been identified as a major contributor to stress. Unresolved workplace tension increases those emotional demands significantly.

Beyond the financially measurable costs lie hidden ones: reputational damage, loss of trust, reduced discretionary effort, and the quiet departure of high-performing employees who simply choose to disengage. Working with people in organisations, it is these hidden costs that I see having the biggest negative impact on businesses.

Recognising Early Warning Signs

Early conflict signals are subtle. A previously engaged employee becomes withdrawn. Emails grow sharper in tone. Collaboration between two departments declines. Informal complaints circulate rather than direct conversations. Any change in behaviour should be monitored, there may be a perfectly innocent explanation, however it could also be an indication of an underlying issue that needs to be addressed.

Effective leaders treat these patterns as data – they pay attention and take action proactively. They do not overreact, but they do not ignore them. A calm check-in can prevent a small misunderstanding from evolving into a formal grievance.

Three Principles of Early Intervention

  • First, take small concerns seriously. Waiting for escalation rarely reduces risk.
  • Second, replace assumptions with clarity. Ask questions before drawing conclusions.
  • Third, preserve dignity at every stage. People who feel respected are far more likely to engage in constructive dialogue.

As workplaces become more complex and emotionally demanding, the ability to address conflict early will define strong leadership cultures. In the next article, we examine why workplace conflict arises in the first place — and how understanding root causes strengthens resolution efforts

About the author

Louisa Meehan is Director of Woodview HRM, where she provides expert Human Resource consultancy and Workplace Mediation services. She supports organisations across the full employee lifecycle, including HR policy development, performance management, leadership development, mediation, and disciplinary processes. Louisa also lectures in related fields at UCD Quinn and Smurfit Business Schools.

A committed advocate for women in business, she was a founding member of the Network Ireland Wicklow Branch and served as National President in 2020. She brings significant governance experience through her roles with Educate Together. Louisa is also a regular media contributor on Newstalk FM, Ireland AM, and East Coast FM, offering insights on HR and current affairs.

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