Resources

Managing
Workplace Conflict

When you hear the word conflict, what happens in your body? Do you feel your jaw clench? Your shoulders tighten? Do you go into fight mode, ready to defend your point or find yourself shutting down and retreating before things get worse? 

Most people have a gut response to conflict. It’s emotional, instinctive, and often shaped by years of lived experience. For leaders, this instinct can feel even more complex. You’re expected to stay neutral, remain calm, and somehow fix things often without formal training or support. 

But what if we shifted our mindset and the way we think about conflict? 

Conflict itself isn’t the problem. In fact, it’s natural. 
It can be as simple as a disagreement between two people or a misalignment of expectations. The real problem lies in how we respond to it and whether we’ve created workplaces that allow us to address it early, respectfully, and constructively. 

The Quiet Cost of Avoiding Conflict 

Too often, conflict in the workplace is left to linger. It’s seen as uncomfortable, awkward, or too hard to deal with, especially when emotions are high or relationships are strained. Leaders may delay the conversation, hoping the issue resolves itself. Sometimes, it does. But more often, it festers. 

Unresolved conflict doesn’t always come with a formal complaint. It can look like: 

  • passive resistance in meetings,  
  • Team members avoiding each other,  
  • Disengagement.  
  • A drop in productivity.  
  • Or even someone suddenly quitting, without much warning. 

The cost isn’t just interpersonal, it’s organisational. High turnover, psychological injury claims, reputational risk, and lost productivity are all common outcomes of poorly managed or ignored conflict. 

In today’s employment landscape, this avoidance can also come with legal consequences. 

Conflict Resolution Is Now a Compliance Matter 

In the past, workplace conflict was largely seen as a “people issue” something to be managed internally with a bit of guidance or an informal chat. But with recent changes to workplace laws, particularly the Respect@Work recommendations and the introduction of the positive duty under the Sex Discrimination Act, the expectation has shifted. 

Employers are now legally required to take proactive steps to prevent harm, especially around bullying, harassment, and discrimination. It’s no longer enough to simply act when someone raises a concern. You have to show that you’ve created an environment where these issues are less likely to occur in the first place. 

This means your conflict management processes, training programs, and leadership approach are not just cultural tools, they are now compliance measures. 

And it doesn’t stop there. The Closing Loopholes legislation, has created a stronger push toward accountability, transparency, and early intervention. Businesses that fail to manage conflict effectively, particularly when it involves unlawful behaviour are now more exposed than ever. 

From Reactive to Proactive: What Good Conflict Management Looks Like 

So, what does a modern, best-practice approach to conflict look like? 

First, it starts with the culture you build. Leaders should be encouraged and trained to lean into difficult conversations, or courageous conversations we like to call them at Jessie Grace. When conflict is addressed early and in a respectful way, it becomes an opportunity for growth, not a source of division. 

Clear expectations are also essential. Do your people know how to raise a concern? Is there a formal process in place? Is it fair, transparent, and consistently applied? If not, employees are more likely to seek external resolution through unions, regulators, or legal action. 

It also helps to recognise that people experience conflict differently. Cultural background, communication styles, and past experiences can all influence how someone interprets or responds to tension. A one-size-fits-all approach doesn’t work. Training in respectful communication, emotional intelligence, and cultural awareness is not just beneficial, it’s becoming necessary. 

Importantly, not every leader is equipped to mediate conflict on their own—and that’s okay. Sometimes, having a third party involved—a facilitator, mediator, or external HR advisor can help restore trust and move the situation forward in a way that feels safe and productive for everyone involved. 

Why This Matters for Every Leader 

It’s easy to think of conflict as something that only affects “problem employees” or toxic workplaces. But the truth is, even the most functional teams experience conflict. And in high-performing workplaces, that conflict is often what drives innovation, change, and deeper understanding if it’s handled well. 

For business owners, executives, and leaders at all levels, your approach to conflict sends a message. It tells your people whether they are safe to speak up. Whether their concerns will be heard. And whether problems will be dealt with fairly, rather than avoided or dismissed. 

It also impacts your bottom line. The hidden cost of conflict through turnover, lost engagement, and legal risk can be significant. And with compliance expectations growing, leaders can no longer afford to leave it to chance. 

At Jessie Grace, we believe conflict doesn’t have to be a crisis. Managed well, it can be a turning point, a moment that strengthens trust, clarifies expectations, and builds resilience in your team. 

But it requires intention. A proactive, people-focused strategy. In collaboration with leaders who are supported to show up with clarity, empathy, and confidence when things get hard. 

Now is the time to assess how your organisation approaches conflict. Are you equipped to handle it early, fairly, and well? 

Or is it time for a reset? 

Conflict is a normal part of workplace life, it usually involves a difference in opinions, values, or working styles between people who are relatively equal in power. Bullying, however, is repeated, unreasonable behaviour that creates a risk to health and safety. The key difference lies in intent, impact, and repetition. Conflict can often be resolved through communication and mediation; bullying requires formal investigation and action.

Conflict becomes a psychological hazard when it leads to harm such as stress, anxiety, or burnout or when it contributes to a hostile or unsafe work environment. Under WHS laws and the Respect@Work framework, employers have a duty to identify and control these risks proactively, not just respond once harm occurs.

Yes. If unmanaged conflict causes or contributes to a psychological injury (like depression, anxiety, or stress-related illness), it may result in a workers compensation claim. However, a claim is less likely to be accepted if the employer can demonstrate they took reasonable management action in a fair and lawful way, such as addressing issues early and following proper procedure.

Every complaint, whether formal or informal, should be taken seriously. The first step is to assess the nature of the concern: is it interpersonal conflict, potential bullying, or misconduct? Once understood, the response should be proportionate: from informal facilitated conversations through to formal investigation where required. Documentation, confidentiality, and fairness at each step are essential.

An investigation is appropriate when allegations involve potential misconduct, breaches of policy, or unlawful behaviour (e.g. bullying, discrimination, harassment). It’s important that investigations are impartial, evidence-based, and timely. Where leaders are directly involved or relationships are strained, using an external investigator or HR consultant helps ensure fairness and objectivity.

Early intervention is key. Encourage open communication, provide conflict-resolution and “courageous conversation” training for leaders, and establish clear procedures for raising concerns. Regular team check-ins, clear role expectations, and psychologically safe environments all help prevent issues from escalating into formal complaints or legal risk.