'Conflict resolution' strategies could reduce £1 billion cost to economy - Derry event told

Derry’s Ulster University Magee campus held a mediation event to demonstrate how ‘conflict resolution’ strategies could reduce the £1 billion cost to the Northern Irish economy.

That is according to the new Chief Executive, Mark McAllister, of the Labour Relations Agency for Northern Ireland (LRA).

The event centred on the benefits of workplace mediation for dispute resolution, improving workplace harmony, reducing costs, and promoting a positive environment on October 16.

Hosted by the LRA in partnership with Mediation Northern Ireland (Mediation NI), Ulster University (UU), and the Chartered Institute of Personnel and Development (CIPD NI), with a guest speaker from the Irish Wheelchair Association.

Recognising the significant financial and wider emotional costs that workplace conflict can impose on organisations and businesses is a key focus of the LRA, as Chief Executive, Mark McAllister explains: ““At £1bn per year, the cost of conflict is a huge burden for our economy to bear, particularly as this equates to £3000 for each person involved in conflict. Research has also proven that people leave people; they don’t leave organisations. 

“This is why mediation, when used early and effectively, offers a people-focused, cost-effective alternative, enabling employees to resolve their differences without costly tribunal cases or lost talent.

“Of course, mediation isn’t a silver bullet and can sometimes struggle to find its place in the workplace in terms of both procedure and sequence. With this conference, we aim to pave the way for mediation to become a well-established and valued approach, helping it find its rightful place in organisational conflict resolution strategies.”

There was an expression of a need for employers to invest in training their line managers in conflict resolution so they can effectively run their team and significantly lower the financial impact on the Northern Ireland economy.

Mr McAllister said: “First line managers have the hardest role in any organisation because they are serving two masters; they are serving the people above them, but they are serving the people that they manage, and I think one of the key issues is that if you see the people management part of your job as a supervisor or manager as a bolt on, then there is something wrong.

"Fundamentally, you have to accept the fact that your job as a manager is not just a process or operations manager; you are also managing people.

“Many people get promoted in a job because of what they have done on the shop floor originally, something they will be brilliant at, but it doesn’t necessarily mean they are a good line manager, and then the employer does not put enough emphasis on those line management skills and leaves the line manager struggling. That is why there is this whole notion of line managers being a bit isolated when it comes to dispute resolutions, conflict management skills, or people relations skills because the employer hasn’t invested in that.”

A report by LRA found that 37 percent of Northern Irish employees experience conflict.

Mr McAllister believes addressing the issue early can be incredibly beneficial to a business.

He said: “One of the skill sets of recognising the warning signs where a relationship is becoming frayed around the edges, and that normally falls to line managers to see what is happening and intervene in a way that will maintain the fabric of the working relationship.

“It is about that skill of the line manager to preemptively see that a relationship is beginning to fray and get in and have a discussion because some people are very reluctant to raise it as an issue, and it is a bit like coming to a T-junction on a road. 

“The left turn is an informal approach, and the right is a formal one. If you are in an organisation where everything goes formal all the time, then why is that?

“Is that the culture of the organisation? 

"Is it because you are so focused on the process? This is how you raise a formal grievance, and this is how you put it in writing and have a meeting. Once people are down that road, it is very difficult to reverse and come back.”

According to a recent CIPD report, nearly a quarter of staff in NI have experienced workplace conflict, which has gone on to affect their mental and physical health. In addition, the most common form of workplace conflict was being undermined or humiliated, afflicting 51% of respondents.

Mr McAllister said that for the past 40 years, the LRA has been known for their dispute resolution service.

He said: “We have flown beneath a lot of people's radars over the years, and the reality is they don’t know about us until they really need us, but when they really need us, it is when things have gone completely pear-shaped and there is a tribunal case and it needs to be resolved. To be honest, when tribunal processes have been lodged, that is the end of the working relationship; there is no way back.

“Our vision in all of this is to help people, everybody, employees, and employers with what matters most in work; that is really what we are about. 

“That is our vision, and that comes in many shapes and forms: the preventative proactive work, and some of that is the dispute resolution work where formal grievances have been lodged and papers have been lodged and the relationship is really at breaking point.

“The Labour Relations Agency is much more than about dispute resolution. It is about looking at the proactive aspect of what makes a job a good job; look at all the things we can give information and advice upon. That is everything from flexible working to mental health and well-being—all of the aspects that make up the qualities of a good job.”

Nicola Barber, Chair of the CIPD (NI) Branch, said: "By encouraging voluntary participation and fostering a collaborative environment, mediation can be a powerful tool for restoring working relationships and enhancing conflict management strategies. Conflict at work is an inherent part of the employment relationship, but when left unaddressed, it can escalate and really threaten the workplace and long-term productivity.”

The field of mediation is gaining significant attention as Ulster University and Mediation NI unveil an exciting partnership designed to equip professionals with essential mediation skills through an innovative new course.

Dr Esther McGuinness, Head of Law School, Ulster University, explains: “The school is delighted to host the first mediation event of its type in the Martha Magee Building of the Derry/LondonDerry Campus (DLD). The event brings together a number of key stakeholders in the mediation sector, the Labour Relations Agency and Mediation NI, and follows on the heels of the university launching the first university-accredited mediation training programme across the island, which is offered across the DLD and Belfast campuses.”

Bobby Marno, Business Development Director of Mediation NI, stated: "We are committed to providing practical solutions that help address conflict in the workplace, fostering a more harmonious and productive environment. By offering flexible training and bespoke programmes, we help organisations reduce the emotional and financial toll that unresolved conflict can impose, supporting healthier workplace relationships through early intervention and open communication."