Conflict costs correspond to the amount of money you invest to tolerate the conflict situation.
If you just multiply the number of people involved and their monthly salaries by the time spent on the conflict on average per month, you don’t need in-depth controlling knowledge to determine the sums that conflicts swallow up. Month after month, the conflict costs increase by this amount. Provided that the conflict does not spread in the meantime.
We can talk about visible and hidden costs.
Visible costs, such as:
- Legal fees
- court costs
- consultations
- severance payments
Hidden costs, such as:
- Absences from work
- Image loss
- Supplier and customer fluctuation
- Increased sick leave
- Meeting times
- Fluctuation costs
- Internal termination
- Loss of know-how
- Employee recruitment
- Loss of productivity
- Deficiencies in team and project work
- Counterproductive behavior
- Replacement costs
- Reduced attractiveness as an employer
- Compulsion to increase incentive systems
- Several follow-up costs
