Businesses in the UK spend as much as £277,000 on a typical employment dispute with a member of staff, according to new research.
A report from Barclays Bank, law firm Lewis Silkin and the Centre for Effective Dispute Resolution (CEDR) claims that internal conflict with an employee is the most common and most damaging business dispute facing employers.
While disputes with customers can also have a big impact on performance for firms, internal disputes with managers and employees are more numerous, the report stated.
The poll of 570 managers found that 65 per cent thought that conflict with the boss would be detrimental for business, compared to 55 per cent who thought with someone on the same level would be detrimental.
However, cases could cost far less if mediated earlier on, the report said, as costs total around £9,000 in the initial stages. Of the £277,000 typical cost of a dispute, £72,000 is spent on management time in tackling the dispute, the report found.
The CEDR announced earlier in the year that conflict cost UK firms £33 billion a year.
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