The following worksheet will help you to calculate the cost of conflict in your workplace. Use it to get an idea of just how costly just one conflict can be. Complete as much of this form as possible. You may not know all the answers, so feel free to make educated guesses.
COST OF ONE CONFLICT WORKSHEET
Describe a significant or ongoing conflict in your workplace (you do not need to be directly involved):
Estimate the combined number of hours these people spend on the conflict on a weekly basis (include the time spent complaining and gossiping about the people involved in the conflict):
Number of people involved
Number of hours in one week
Weekly hours of lost productivity owing to conflict
Average hourly wage of people involved
Estimated number of weeks
Subtotal: Cost of time
If this conflict has (or could) lead to turnover, multiply the annual compensation of each person who has left (or who may leave) the organisation by 150%:
Number of employees who could leave
Estimated average salary
Cost of turnover (150%)
Subtotal: Cost of turnover
Estimate the actual and potential costs of reduced decision quality, disengagement, sabotage, and increased health care needs related to this conflict:
Potential legal and HR costs
Lost business, missed opportunities, sabotage, absenteeism, etc.
Subtotal: Other costs
Use the subtotals to calculate the total cost:
Cost of time
Cost of turnover
Total cost of one conflict
Can your organisation afford the cost of conflict?