Workplace conflict costs far more than we think

According to the report “Estimating the Costs of Workplace Conflict”

Workplace conflict costs UK employers £28.5 billion per year — almost €33 billion.

Converted, this equals more than €1,100 per employee per year. And this is not a uniquely British issue. It is relevant for every employer with employees — including organizations in the Netherlands.

What makes conflict so expensive?

The ACAS research shows that conflict costs are mainly linked to four processes that we also see every day in Dutch organizations:

1. Absence due to conflict

Conflict-related sickness absence costs the UK more than £2.2 billion. In the Netherlands, one day of absence costs on average €250–300. With long-term absence related to workplace tensions, this can quickly rise to tens of thousands of euros per employee.

2. Turnover and resignation

This is the largest cost category. In the UK, almost half a million employees leave their jobs each year because of conflict. In the Netherlands, replacing one employee costs on average €10,000–€50,000 (recruitment, onboarding and productivity loss).

In practice, we see that conflict is one of the most frequently mentioned reasons for silent turnover.

3. Presenteeism

People are physically at work, but are not functioning at their full capacity. ACAS estimates the costs of this at £590 million to £2.3 billion.

In the Netherlands, presenteeism is rarely visible in reports — but the productivity impact is substantial.

4. Formal procedures

Complaints, disciplinary processes and legal steps. In the UK, this represents a smaller percentage of total costs, but it is extremely expensive per case. The Netherlands is not very different: once lawyers, occupational physicians or mediators become involved after escalation, costs are already high — and the damage to trust is even greater.

The key conclusion: waiting makes everything more expensive

ACAS warns that conflicts that are not addressed early become significantly more costly. Informal conversation support or mediation costs hundreds of euros, while dismissal, absence, reintegration, turnover and reputational damage can easily amount to tens of thousands of euros.

Or, as an HR director once told me: “We should have called three months earlier. Now it has become an organization-wide damage case.”

Why this research is relevant for Dutch employers

The Netherlands has its own regulations and culture, but the underlying dynamics are the same:

we have high employment costs → so absence is expensive;

we have a tight labor market → so turnover is even more costly;

we place high demands on wellbeing, safety and professionalism → so poor conflict management affects reputation and trust;

and we invest little in conflict competence → so escalation becomes the default rather than the exception.

Many Dutch employers invest in leadership, strategy or vitality, but not in conflict competence — even though conflict always occurs, and always comes with costs.

What organizations can do now

The lesson from the ACAS report is clear: conflicts should not be ignored, but addressed early, professionally and systematically.

And that is exactly what we help organizations with at Result ADR:

early recognition of tensions,

facilitated conversations and mediation,

conflict competence training for managers,

and building a healthy conflict culture.

Because the only thing that is truly expensive is doing nothing.

Would you like to read the research yourself?

The ACAS report is freely available:

“Estimating the Costs of Workplace Conflict” (2021).

Would you like to know how your organization can become more conflict-competent?

I would be happy to think along with you.