The Hidden Cost of Unresolved Conflict: Why Investing in Workplace Repair Pays Off

Conflict is normal in any workplace. But when it goes unaddressed, the costs start to pile up quietly, and sometimes invisibly.

There’s the time lost due to avoidance: meetings that feel tense or unproductive, employees who quietly disengage, and managers who spend hours managing around the problem instead of addressing it directly. There’s the human cost: increased stress, burnout, and fatigue. And then there's the organisational impact: higher turnover, increased sick leave, reputational risk, and lost productivity.

A global study by CPP Inc. found that U.S. employers lose an estimated $359 billion annually due to unresolved workplace conflict, largely through lost time and productivity. Another key finding is that managers spend between 20% to 40% of their time dealing with conflict, often informally. That's nearly one or two working days each week spent on issues that could be more effectively managed with early support.

Employees avoid conflict too. According to Myers-Briggs research, 70% of employees avoid conflict entirely, and over a quarter let tension linger for weeks or longer. While addressing conflict is easier said than done, avoiding it doesn’t make the problem go away - it just allows it to fester, draining morale and trust.

The cost of turnover adds up quickly as well. The Society for Human Resource Management estimates that replacing a single employee costs anywhere from 50% to 200% of their annual salary (!).

What many leaders don't realise is that the cost of doing nothing is often higher than the cost of stepping in early.

Restorative facilitation is a structured, values-based process that fosters open dialogue, accountability, and relational repair. While it’s an effective method of repair at the point of crisis, it's especially effective in the early stages of conflict, before grievances become formal complaints or departures. In fact, it can reduce the likelihood of escalation significantly while also improving team culture and resilience through its focus on strengthening relationships.

A full restorative process (for 2-party conflict resolution) typically costs between $3,000 and $6,000. Compared to the cumulative costs of absenteeism, HR interventions, and lost staff, it's a modest investment for a potentially transformative outcome.

For organisations navigating tight budgets and stretched teams, this kind of early repair work can feel like a luxury. But it's not. It's preventative maintenance. Just like you wouldn’t ignore a leak in your roof because it hasn’t collapsed yet, you shouldn’t ignore relational strain in your team just because no one has lodged a formal complaint.

The return on investment is real: fewer formal HR processes, less time lost to dysfunction, greater accountability, and stronger, more effective leadership. Teams that feel safe enough to raise concerns early are more likely to thrive in the long run.

If your team is feeling stuck, flat, or strained, and you're not sure where to begin, consider restorative support. Often, a small step now prevents a much bigger problem later.