The hidden costs of conflict — why employers in the Netherlands cannot afford to wait

A classic and widely cited study

A classic and widely cited study, “Types, Sources, Costs & Consequences of Workplace Conflict” (Riaz & Junaid), clearly demonstrates how broad the impact of conflict is on productivity, well-being, teams, culture and ultimately business operations.

And these insights may be even more relevant for employers in the Netherlands today than when the article was written.

What does the research show?

1. There are different types of conflict

The article distinguishes between task conflict, relationship conflict, role conflict, group conflict and value conflict. Relationship conflict in particular proves to be destructive: it directly damages trust, communication and collaboration.

2. The causes are often rooted in structure

Conflict does not arise only from “clashing personalities”, but from:

unclear roles,

conflicting expectations,

poor communication,

dependencies between departments,

perceived unfairness.

In other words: conflict is often an organizational issue, not an individual problem.

3. The costs are high — and largely hidden

According to Riaz & Junaid, the biggest cost factors are:

loss of productivity (distraction, time spent on conflict, reduced performance),

absenteeism and stress,

turnover and loss of knowledge,

legal and formal procedures,

customer or quality losses.

Much of this is not measured — but employers do feel the impact.

Why this article is so relevant for Dutch employers

Dutch organizations are under pressure: a tight labor market, high absenteeism costs, increasing workload and growing complexity in collaboration. In this context, conflict becomes a greater risk.

And because absenteeism in the Netherlands costs on average €250–€300 per day, and employee turnover €10,000–€50,000 per employee, hidden conflicts can quietly grow into significant financial damage.

The research also shows that addressing conflict at an early stage is far more effective than waiting until it escalates into illness, departure or legal proceedings.

This aligns closely with what we see every day in our practice at Result ADR: the earlier you take conflict seriously, the better the relationship — and the lower the costs.

Conflict is not the problem. A lack of conflict competence is.

What this article makes clear is that conflict is a normal part of collaboration.

It only becomes dangerous when organizations lack the structure, culture or skills to deal with it effectively.

This means Dutch employers should not focus on avoiding conflict, but on:

clear role and responsibility agreements,

timely conversations when tension arises,

leadership that can guide differences,

and professional interventions when needed.

Conclusion

The article by Riaz & Junaid is more than theory: it is a wake-up call.

An invitation to stop seeing conflict as “trouble”, and instead recognize it as a strategic issue that determines how healthy and future-proof an organization is.