01.30.08
What is Conflict Costing You/ Your Company Part IV
The third reducible cost is loss of skilled employees. Organizations invest in employees’ skills by paying a premium salary upon hiring and by providing training thereafter. Exit interviews, which ascertain reasons for terminations, reveal that chronic unresolved conflict is a decisive factor in one leaving a job in at least 50% of all voluntary departures; and chronic unresolved conflict accounts for up to 90% of all involuntary departures (except due to downsizing). Replacing an employee costs 150% of his/her total annual compensation. So referring to our earlier example with Wanda, Fred, and Charlie, if Fred decides to leave the cost or replacing him would be $40,000 X 150% = $60,000; since it would be voluntary use 50% or $30,000 that could be attributed to conflict.
… more reducible cost factors in Part V
What is Conflict Costing You/ Your Company Part III
Continuing from Part II, the second reducible cost is reduced decision quality.When a decision is being made under conditions of conflict, these decisions are always inferior to decisions made when cooperation prevails. Even if someone is not in a position that is deemed “decision maker” there can still be a cost to minimal decisions. For example, let’s say that a secretary decides to put all calls through to voice mail since he/she doesn’t want to talk with their supervisor – thus the supervisor misses an important call that can cost the company a huge sale. Good decisions must be based on an optimum quantity and quality of objective information. If conflict is present between people who share decision-making authority the resulting decisions are likely to be contaminated. A realistic figure for cost in this arena could be very low to exceedingly high depending on the decisions… let’s not put a dollar value here. We’ll just say that the cost could run from low to high.
…more reducible cost factors in Part IV
01.28.08
What is Conflict Costing You/ Your Company? Series, part I
What is the cost that conflict is causing your industry, your company, your team? You might be amazed at the amount of money that is being thrown away by ignoring or down-playing conflict that is occurring in the office. “Conflict is the least recognized cost and the largest reducible cost to an organization.” (Managing Differences.Daniel Dana, Ph.D. copyright 2006). This series is going to take you through 8 different ways conflict is a cost to an organization. Before reviewing the next few sections, think of a conflict that is occurring in your organization, it can be between two people or between groups of people, etc. The more individuals involved the higher the cost. Also take into account, those that are observing or effected by the conflict that is around them; this is an additional cost as well. (Much of the information provided is research from Daniel Dana Ph.D.)
….. to be continued in part 2
01.18.08
Just Fire Them!!!
When talking with a Human Resource Specialist from a hospital that was advertising that they were looking to reduce employee turn-over, in the conversation about conflict, she stated that they do not have conflicts. She stated that “if a manager isn’t working out we just fire them!”
WOW!!!
Unfortunately that is a common response. Even employees may often wonder why their boss or company does not “just fire” another employee that is slacking off. It is all too often a short-time solution for a long-time problem. Some employers do not “just fire” someone because they do realize the cost and feel the ramifications of such actions.
…. continued in next installment.
01.16.08
Mediation, Conflict Resolution.
Mediation is a process in which two or more people (or groups of people) involved in a dispute come together to try to find a fair and workable functional solution to their problem/ situation. The goal of mediation is for the parties to work out a functional solution that they can all live with; thus focusing on the future, not on the past. (As JFK is quoted, “it is our goal not to fix a blame for the past, but a solution for the future”. ) I don’t often use the word “conflict” because it is seen as harsh… so think of the word “discord”, because it is a softer and possibly a little easier to relate to.
People in discord are about 30-40 percent less effective and efficient than those who are not in conflict. People close to people in discord are about 20-30 percent less effective and efficient than those who are not around people in discord. In dollars and productivity, what does that cost meant to you?… to your enterprise? In happiness, in creativity, in social interactions; what are the costs? I think the cost is immense and you will too once you really consider it. So, whether it is your employee, a co-worker, a friend, a customer, a client, an associate, or you that is in discord, if you’ve been wondering if talking to someone about mediation would be beneficial, really think it over, most mediation business’s will discuss the situation with you at no cost. Most likely, you’re overdue for some positive news!
What is that positive news? It is that a mediator can come into any situation and assist you/your team/your company in resolving the discord. You can move forward, you can stop the negativeness that is felt in the office, there is an agreement in place that everyone is involved in developing that is concrete and is going to be followed. The agreement can be whatever you make it to be with the concurrence of all parties involved. It is very important to understand the ownership and the control all parties have in a mediation setting. Once you step beyond mediation you go to arbitration. Arbitration is a great resource, for specific situations; as is litigation which is a further step beyond arbitration. However, in arbitration and litigation there is a 3rd party making decisions for you… you loose total control of the outcome. There is also added expense and time spent beyond mediation.
Within mediation you are looking at sitting down face to face within a week or two. Then you are looking at one to two days for the development of the agreement and then signing of the agreement; the development part is a structured setting in and of itself, includes much disclosing of information/feelings and then ideas for resolution. There is a financial expense in mediation, but it is minimal due to topics discussed here and when you look at the expense you occur should you require arbitration or litigation. Within mediation everything is confidential as well, beyond mediation there are public records.
It is common that disputes start with a “Blank” as discussed in the previous entry. One might think that it is just amazing that one blank can lead to the need for mediation. But when you think of the chain of events that can occur from someones action, who is acting on such a blank, the actions can be harmful to a companies reputation, productivity, and employee satisfaction. My uncle works for a company that if a a comma is placed out of order in a computer program that develops a certain product, then there is thousands of dollars wasted. That comma can be put there for various people who are disgruntled and wanting to get back at their manager, or whomever within the organization. Think of the areas where sabotage can occur without your organization… how much would you be willing to spend to over look disgruntlement? Others have said that if there is a problem with an employee/manager who is not working out then they would just fire that person. That method of dealing with an employee will be brought up in another entry to come.
Conflict/discord within any company/organization is the most reducible cost and the least recognized. It is a wonderful thing you can do for yourself/your team/ your company to get back to doing “good” and them move to being “great”. Wouldn’t it be great to have and work for a company with high reputation, with low employee turnover and high employee satisfaction. If more companies would look at mediation in terms of dealing with the discord within their organization they would be happier and healthier and sought after to work for.
Statistics from Managing Differences: How to Build Better Relationship at Work and Home. Dr. Daniel Dana, Ph.D. 2006
