Managing Workplace Conflict in Small Businesses

managing workplace conflict

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Conflict is inevitable in any team dynamic, especially in small teams with people working closely together.  

Whether it’s personality differences or competing priorities, unresolved conflicts can greatly affect productivity, morale, and business success. And lacking a dedicated HR or legal team makes conflict management even more challenging for small business owners and managers.  

This post will arm you with five best practices for managing workplace conflicts. We’ll cover strategies you can implement to build a positive team culture where people view disagreements as opportunities for growth and respond with constructive solutions rather than negativity.  

Why does conflict happen?

Conflict among employees can arise for many reasons. Everyone has their own perspectives, shaped by their unique experiences, values, and beliefs; what seems logical to one person may not make sense to another. When these values or priorities clash—such as one employee emphasising speed while another focuses on quality—tensions can rise.  

Poor communication

It often comes down to how people communicate. While some are direct, others may be more reserved, and that, in itself, can create misunderstandings, even when no one intends to cause conflict. For example, if managers and employees have different expectations about project deadlines that are not communicated, it can leave employees feeling unfairly judged and managers unhappy with the results.  

Different goals

You also need to consider differing goals and focuses. One person might prioritise meeting tight deadlines for quick revenue, while another focuses on high-quality work, even if it takes longer. This clash of priorities —speed versus quality —can cause frustration and tension among teams.  

If employees feel they are not provided with adequate resources or support to complete their tasks effectively, managers might be seen as neglecting to address these needs, leading to frustration and disputes.  

Even though some conflict can harm your small business, it’s a normal part of life and an opportunity to learn and grow rather than something to avoid. When handled well, conflicts can lead to better solutions and stronger relationships.  

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Best practices for managing workplace conflict

Understanding the root cause is the first step in effectively managing and resolving conflicts in your small team. By being aware of the potential for disagreements and addressing the underlying issues, you can create a more harmonious and productive work environment.  

1. Encourage open communication

With high volumes of messages and constant notifications, teams can be overwhelmed, making managing and understanding information difficult.   

Miscommunication is common and can affect everything from cost to morale. Improving communication can reduce conflict and help employees collaborate.   

Encourage open communication and reduce the potential for friction by:  

  • Creating a culture of transparency: Implement regular feedback sessions where employees can share their thoughts and concerns openly. This helps to address issues early and fosters a sense of trust and inclusivity.   
  • Create insights profiles for teams: Completing an insights profile during the onboarding process is a great way to get tailored insights specific to each person—from how to communicate with them to how they approach tasks. 

2. Address issues early

Let’s imagine Alex and Sam disagree on the project timeline: Alex feels Sam is delaying work, while Sam thinks Alex’s deadlines are too tight. Their team leader addresses this early by holding separate meetings to understand their perspectives, discovering that Alex’s deadlines are causing stress for Sam, who needs more time for quality work.   

The leader then brings Alex and Sam together in a joint meeting to discuss their concerns and find a solution. They agree on a more realistic timeline for quality checks and meeting key milestones. The manager follows up to make sure the new plan is effective and no further issues arise.  

In this example, the manager’s approach demonstrates good conflict resolution practices, which can be used as a model for handling future disputes.  

Performance management software can help you tackle issues early. Whether you need 360 feedback, self-assessment, or information about probation, software like Cintra People can keep important information in one place.  

Tackle conflict early in your small business by:  

  • Paying close attention to team dynamics: Observe interactions with team members, looking at any changes in team behaviour or communication patterns that may signal issues.  
  • Normalising conflict resolution: Make it clear that addressing conflicts early is a normal part of workplace culture and that it’s a proactive step toward maintaining a healthy environment.  
  • Having regular check-ins: Schedule one-on-one meetings or team huddles to gauge employee satisfaction and identify any concerns. Time and location tracking features allow you to see which days staff are working at home or in the office to schedule check-ins.  

3. Establish clear roles and expectations

When conflicts happen, clearly defined roles help avoid confusion and overlapping responsibilities by making sure only the right people are involved. This clarity reduces miscommunication and makes it easier to find a solution quickly.  

Not only that, but when everyone knows their responsibilities and what is expected of them, misunderstandings and disputes are less likely to arise to start with.   

Deal with team tensions by:  

4. Train managers to tackle conflict head-on

Managers without proper training may address only the surface issues of a conflict, failing to resolve underlying problems. This can lead to recurring disputes and unresolved tensions.  

Proper conflict resolution training not only addresses immediate issues but also tackles underlying problems. This approach creates a more focused work environment by allowing employees to concentrate on their tasks and work more effectively.  

Upskill your managers to manage workplace conflict well by:  

  • Investing in flexible learning programmes: Taking time away from work for training can be a struggle. By offering online courses or webinars focused on conflict resolution, senior staff can learn new skills at their own pace and access valuable resources.  
  • Offering coaching and networking opportunities: Arrange one-on-one coaching sessions with conflict resolution experts to address specific challenges. Equip managers with the skills to develop tailored strategies for handling future conflicts effectively.   

5. Review policies and procedures

Policies and procedures play a crucial role in managing and resolving workplace conflicts. They provide a structured approach that helps make sure conflicts are addressed fairly and consistently.   

Robust policies provide a clear process for reporting and resolving conflicts, outlining the steps employees and managers should follow. This framework ensures conflicts are addressed fairly and transparently, including procedures for mediation, investigation, and resolution.  

That said, policies are only effective if employees not only know and understand them, but also the reasons behind them. This understanding fosters greater compliance and support. For instance, an outdated Code of Conduct that doesn’t reflect recent legal changes can cause confusion and lead to issues among employees.  

Review your internal company policies by:  

  • Responding to changes in a timely way: Policies should be reviewed and updated regularly to reflect changes in the law, organisational structure, or business practices.   
  • Involving employees and stakeholders in policy reviews: Update policies based on feedback from employees and managers to ensure they remain practical and effective in addressing current issues.  
  • Document the learning from the previous conflict: Records of conflicts and resolutions are gold dust when it comes to updating company policies. By identifying patterns, you can refine existing procedures and develop more effective procedures.  

Managing workplace conflicts that escalate

Unresolved issues make the workplace stressful and can reduce job satisfaction. Tensions can hurt relationships between team members and managers and worsen in small environments where working with other managers or colleagues isn’t an option.   

Even more, small issues can often grow into bigger problems. Employees who feel conflicts are not addressed may become less willing to collaborate and share ideas or leave the company. It’s critical to recognise when to step in and when to empower employees to resolve problems independently.   

  • Step one: Watch for signs that a conflict is escalating beyond the team’s ability to resolve it internally. This may be persistent behaviour or frequent arguments between certain people or groups. Identifying these signs early can help address the problem before it escalates.  
  • Step two: Get instant access to information about your employees. Cintra People allows you to create, filter, and save meaningful, critical reports about specific employees and their performance, allowing you to make informed decisions.  
  • Step three: Involve HR when the conflict becomes too complex to handle alone, if legal or compliance issues arise, or when the situation affects the broader workplace environment. HR can provide the necessary support and guidance to ensure the conflict is resolved effectively and fairly.  

Build a resilient and engaged team

A well-managed team is not only more resilient in meeting challenges and adapting well to constant changes but also more engaged and motivated to contribute to the success of your business.   

Proactive conflict management has huge long-term benefits. By addressing conflicts early and effectively, you can improve collaboration, boost productivity, and sustain a more cohesive team.  

And, with Cintra, you have all the tools you need to do just that. Book a demo today to find out how we can help in whatever situation arisesfrom managing workplace conflicts to onboarding and performance management. 

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Megan Burnham