Conflict Cost Calculator

  • Calculate the cost of a specific conflict and estimate the cumulative cost of conflicts within your organisation per annum.
  • You can also calculate return on investment (ROI) and prepare a cost benefit analysis on strategies to prevent or manage conflict.
   
Calculation Form Summary Report  
I. COST OF A SPECIFIC CONFLICT
a. Name a Specific Conflict e.g. X team
b. How many months did the conflict last? max 12 months
Direct and Indirect Parties  
c. How many direct parties are involved in the conflict?
e.g. 2 people for interpersonal; 4 or more for team conflict
What is their average annual salary? $
d. How many people indirectly affected in team or organisation
What is their average annual salary? $
e. How many managers are involved in managing the situation
What is their average annual salary? $
II. COST FACTORS
1. Reduced Billable Hours  
Can you estimate lost productivity through differences in billable hours over the conflict period? If not, donít worry go to item 2.
 Yes
 No
1a. Direct Parties' Billable Hours
Usual average billable hours per month
Average billable hours per month in conflict period
1b. Other Team Members' Billable Hours
Usual average billable hours per month
Average billable hours per month in conflict period
If you calculated 1a&b. DO NOT enter estimates for 2a&b or 3a&b unless you consider them important. Go to 2c & 3c - manager's time & absenteeism.
2. Time Dealing with Conflict  
2a. Direct Parties to Conflict's Time
Estimate the number of hours per month spent engaged in the conflict
i.e. debating, discussing with colleagues, documenting...
2b. Other Team Members' Time
Estimate the average number of hours a colleague spends per month engaged in the conflict
2c. Managers' Time
Estimate the number of hours per month spent engaged in the conflict
i.e. time spent with direct parties, team members, addressing problems; thinking through issues.
3. Absenteeism  
3a. Direct Parties' Absenteeism
Estimate the number of days sick leave per month as a result of this conflict
Do not include time off related to workers compensation claims.
3b. Other Team Member's Absenteeism
Estimate the number of days sick leave per month as a result of this conflict
3c. Manager's Absenteeism
Estimate the number of days sick leave per month as a result of this conflict
4. Grievances, Third Party Costs & Litigation  
4a. Was an internal grievance invesigation conducted? What was the cost?
4b. Was there an external grievance invesigation or appeal? What was the cost?
4c. Was mediation or another third party intervention used? What was the cost?
4d. Was litigation involved? What was the cost?
5. Workers Compensation  
You must choose to provide input to a or b below exclusively, which one do you choose?
 a
 b
5a. Did a workers compensation claim result from this conflict. If so what was the cost?
5b. Rate the likelihood that this conflict may have resulted in a stress-related workers compensation claim e.g. 20%
Our calculation will be based on current average cost of stress claim in Australia.
6. Productivity Losses  
6a. Calculate the % productivity lost as a result of poor motivation, team communication and decision making
Conservative guideline: 3-5% for moderate conflict; 5 -15% for severe conflict
6b. Was the job restructured to accommodate parties inability to work together
- If so, how many employees were effected by this restructure?
- What was their average annual wage?
6c. Can you identify any opportunity costs e.g. lost business
All productivity loss calculations are adjusted in light of earlier calculations of lost time
7. Staff Turnover  
7a. Number of staff who left as a result of this conflict
7b. What was the average annual wage of staff who left?
7c. Were any severance pay-outs involved? What was the total cost?
SPECIFIC CONFLICT - OVERALL COST  
III. ORGANISATIONAL COST OF CONFLICT
8. Cost of Formalised Conflict/Grievances per Annum  
8a How many formal grievances does your organisation process each year?
This figure will be used to calculate the cost of formalised conflict per annum
8b. Cost of formalised conflict to organisation per annum
The overall cost of a specific conflict (II above) will be adjusted to consider workers compensation risks and used to estimate the organisational cost of conflict unless you manually enter an alternative figure.
9. Cost of Informal Conflict per Annum  
For every formal grievance, we conservatively estimate there are an additional five significant grievances. We estimate their cost at 10-20% that of formal grievances.
The above figure is based on 15% of formal grievance costs
ORGANISATIONAL COST OF CONFLICT PER ANNUM  
IV. YOUR RETURN ON INVESTMENT
Complete the following section to calculate your actual or anticipated return on investment (ROI) for conflict management interventions or training
10. Performance Improvement  
10a. Cost of conflict before introduction of conflict strategy
10b. Cost of conflict management strategy
10c. Actual or anticipated target cost of conflict after strategy
Choose one of three options below
i. Enter your target reduction in the cost of organisational conflict in $
ii. Enter your target reduction in cost of organisational conflict as a percentage of current costs %
iii. Alternatively enter actual costs after introduction of your new strategy or training program
YOUR RETURN ON INVESTMENT