Conflicts at work cost the organisation in terms of lost productivity and sickness absence.

In its survey the CIPD found that the main benefits of using mediation were:

• Improving relationships between individuals (83%)
• Reducing or eliminating the stress involved in using more formal processes (71%)
• Retaining valuable employees (63%)
• Reducing the number of formal grievances raised (57%)
• Developing an organisational culture that focuses on managing and developing people (55%)
• Avoiding the cost of defending employment tribunal claims (49%)
• Reducing sickness absence (33%)
• Ability to maintain confidentiality (18%).

Chartered Institute of Personnel and Development (CIPD) -Mediation: An Employers Guide, 2008:

WHAT INCLUDES COSTS TO THE EMPLOYER OF DISPUTES?

Time lost to:

• Formal proceedings such as grievances and employment tribunal claims.
• Sickness absence costs.
• Management time diverted to dealing with the conflict .
• Increased staff turnover, recruitment and re-training costs when unresolved conflict ends in resignation.
• Lower staff morale means lower productivity and distraction from goals.
• Poor working relationships.
• Possible development of a blame culture to develop.
• Compromised organisational reputation.