Key employment law updates | May 2021

Estimated costs of workplace conflict – Acas reveals the costs to employers is £1,000.00 per year per employee

Acas has published a new report estimating the costs of workplace conflict to UK employers. The most startling statistic estimates that the cost of conflict was £28.5 billion in one year. This is an average of over £1,000 for every employee.

The estimate covers total costs to organisations, including informal, formal and legal processes alongside any costs associated with sickness absences and resignations. The report highlights the importance of employers dealing with conflict early in order to protect employment relationships and save money. Poor management of conflict can also exacerbate issues, leading to staff stress and consequently impact on workplace productivity. The benefits of handling issues promptly is a sound financial decision but also beneficial for the greater impact on the business and workforce.

With the backdrop of coronavirus and its significant impact on work, keep in mind that it is important to be alive to problems being raised and to seek to deal with those as early and effectively as possible. Doing so will reduce costs, improve business management and lead to opportunities to create more inclusive and fairer workplaces.

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