Acas research from 2018/19 estimated that workplace conflict costs British businesses nearly £30 billion a year. And that’s without counting the additional knock-on effects of staff absence and disengagement. The cost of industrial action costs many further billions to the economy.
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Since we published that research, the world of work has changed dramatically. Views have become increasingly polarised and global economic pressures, weak growth and the rising cost of living have brought workplace conflict into sharp relief. The rise of hybrid and flexible working, increasing concerns around mental health and wellbeing and the growth of precarious work have also contributed to new employment relations challenges.
Changing nature of workplace disputes
These changes have contributed to a recent resurgence in industrial action in the UK not seen for decades. But the nature of workplace disputes is increasingly trending towards individual disputes. Despite the recent spike in collective unrest, the number of days lost to industrial action last year was eight times lower than it was 50 years ago, but the number of individual dispute cases has risen 14 times over the same period.
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At Acas, our services have responded to the changing nature of disputes: we have maintained our strong collective dispute resolution record – resolving nine in 10 disputes we are engaged in – while growing our individual dispute resolution services to resolve three quarters of disputes before they reach employment tribunal.
But at this key moment, the systems, skills and capability required to ‘disagree well’ have been eroded. We have seen a marked drop in the experience and skills to manage conflict and a change in tone, with disputes quicker to escalate, and parties less willing to reach an agreement. The disputes reaching Acas are more tense, with a wider gap between established entrenched positions.
The business case for healthy employment relations
Business and HR leaders know that the UK remains a great place to live and work – companies with clear purpose and engaged employees will take their organisation through the most challenging times.
Read more: Navigating workplace conflict: a guide to constructive management
Workplaces built on trust, flexibility and people-centred policies consistently perform better on staff retention, engagement and innovation. That’s what drives productivity. High-quality jobs and high-performing businesses are not trade-offs – they go hand in hand.
Learning to disagree better
We regularly work with trade unions, businesses, academics and the government as UK’s leading workplace experts to discuss the future of employment relations and host discussions on how, together, we can create the right environment for better conflict management, healthier employment relations, and the productivity and growth our country needs.
At Acas, we know that managing conflict well is a key enabler of resilient, successful organisations. Conflict can be a positive, creative force which drives innovation and new ideas. And differing views bring strength and a breadth of opinion.
By Kirsty Watt, director of strategy and external affairs, Acas
