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The Hidden Cost of Unresolved Conflict

Writer: Johnny Knatt, SPHR
Johnny Knatt, SPHR
Apr 9, 2025
1 min read


"According to research, unresolved conflict is the largest reducible cost in many businesses."

What This Means: Unresolved conflict leads to indirect -- but highly impactful -- costs that quietly drain time, energy, and money from organizations. These are expenses that can be minimized -- or even eliminated -- through effective conflict resolution training.

Common Costs of Unresolved Conflict:

- Lost productivity: Distracted or disengaged employees.

- Increased absenteeism: People avoiding toxic or tense environments.

- Higher turnover: Talented staff leaving to escape unhealthy dynamics.

- Poor collaboration: Delays, friction, and project failure.

- Legal risk: Escalated conflicts may lead to formal complaints or litigation.

Research Insight:

A study by CPP Inc. (publisher of the Myers-Briggs assessment) found that:

U.S. employees spend approximately 2.8 hours per week dealing with conflict.

That is the equivalent of $359 billion in paid hours annually.

The Bottom Line:

Teaching managers and teams how to resolve conflict improves workplace culture -- and significantly reduces preventable costs.

Want to Reduce the Hidden Costs of Conflict in Your Organization?

Let us build the skills your team needs to lead with empathy, confidence, and results.

Contact Johnny Knatt at JJK Workplace, LLC to schedule customized training:

Attribution:

Content adapted and developed by Johnny Knatt, JJK Workplace, LLC.

Research citation from CPP Global Human Capital Report.

 
 
 

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