Negative costs without any benefit for the company as dysfunctional conflict costs. They are an investment that you can expect a positive ROI for. for conflict management or further development of the company) are referred to as functional conflict costs. KPMG (2009) divides the conflict costs into functional and dysfunctional conflict costs. Positive costs (e.g. 25% of sales depend on the quality of communication.įunctional or dysfunctional conflict costs? 1% of employee costs pa are lost for unprocessed conflicts.The average cost per bullying case is 60,000 euros.30-50% of the weekly working hours of executives are spent directly or indirectly with frictional losses, conflicts, or the consequences of conflict.
10-15% of the working time is used for conflict resolution in every company.KPMG (2009) found the following results from a survey of 4,000 industrial companies: To get an idea of how high conflict costs can be for your company: They include costs for conflict resolution, a decrease of motivation, time spent dealing with conflict, loss of clients due to conflicts in the team, the image of the company, interrupted decision making, absenteeism, turnover, a decrease in productivity, and much more. Conflict costs are all costs a company has as a result of a conflict.
