HOW PEOS CAN HELP CLIENTS NAVIGATE WORKPLACE CONFLICT

BY Celeste Duke, SPHR

Managing Editor
BLR

March 2025

 

Workplace conflict is an unavoidable reality in any organization. It arises naturally in environments where diverse people collaborate, each bringing unique perspectives, priorities, and approaches to their work. While essential for innovation and progress, these differences can sometimes lead to tension.

For PEOs, the ability to help clients navigate workplace conflict isn’t just an added value; it’s a core part of building strong, thriving partnerships. Effective conflict resolution fosters better working relationships, enhances productivity, and reinforces a healthy workplace culture.

TRANSFORMING CONFLICT INTO OPPORTUNITY

It’s easy to view conflict as purely negative, but that perspective misses its potential. While unmanaged or poorly handled conflict can harm morale and disrupt workflows, constructive conflict can lead to breakthroughs. Disagreements often illuminate blind spots, inspire fresh ideas, and create pathways for personal and professional growth.

That said, conflict must be addressed to have a productive outcome. The cost of ignoring it is high. According to a 2022 study by The Myers-Briggs Company, managers now spend over four hours per week managing workplace conflicts, a significant increase from previous years. For your clients, that translates to lost focus on strategic goals, diminished team performance, and increased turnover if conflicts are left unresolved.

Providing a clear and structured approach to conflict resolution can empower your clients to build healthier, more resilient workplaces. Let’s dive into how you can guide them through the process.

FIRST, UNDERSTAND THE SITUATION

Resolving workplace disputes effectively starts with understanding their roots. Encourage your clients to begin by gathering information to assess the conflict’s scope and context.

These guiding questions can help:

  1. Who is involved? Conflicts often extend beyond the immediately visible participants. Team dynamics, cross-departmental relationships, or external influences may contribute to the tension.
  2. What’s driving the disagreement? Is the conflict a result of different work styles? Miscommunication? Or does it stem from something deeper, like organizational silos or diversity concerns? Identifying the root cause is key.
  3. Why now? Timing matters. Conflict may arise due to stressors such as deadlines, leadership changes, or shifts in company strategy.
  4. Are there relevant policies? Organizational policies or employee handbooks often provide clarity on expectations and procedures, offering a foundation for resolution.

By encouraging your clients to ask these questions, you provide them with a clearer lens through which to address the problem, making the resolution process more targeted and effective.

A STEP-BY-STEP GUIDE TO WORKPLACE CONFLICT RESOLUTION

When a conflict arises, having a structured approach can make all the difference. Here’s an eight-step framework you can share with your clients:

  1. Bring all parties involved together. Ensure everyone affected by the conflict is included in the conversation. Leaving out key players can undermine the resolution and allow issues to resurface.
  2. Set clear ground rules. Create a safe, respectful space for dialogue by establishing guidelines, such as maintaining professionalism and focusing on solutions. These rules help set the tone for productive discussions.
  3. Define the problem. Each participant should have an opportunity to express their perspective, focusing on their needs rather than assigning blame. Encourage active listening to ensure everyone feels heard and understood.
  4. Explore potential solutions. Facilitate a brainstorming session where all parties propose ideas to address the issue. Emphasize the importance of finding options that align with shared goals and address key concerns.
  5. Agree on a resolution. The best solutions are those that satisfy the core needs of everyone involved. Ideally, participants should choose the resolution themselves, with your client acting as a guide.
  6. Create an action plan. Once a solution is chosen, take the time to map out how it will be implemented. Define responsibilities, timelines, and measurable outcomes to ensure accountability.
  7. Monitor progress. Conflict resolution doesn’t end with a handshake. Encourage your clients to follow up regularly to ensure the agreed-upon solution is working as intended.
  8. Reflect and learn. After the conflict is resolved, evaluate the process. What went well? What could be improved? This reflection step helps build stronger conflict management skills for the future.

THE PEO’S UNIQUE ROLE

PEOs have a distinct advantage when it comes to supporting clients with conflict resolution in the workplace. As trusted HR partners and advisors, you bring both the expertise and objectivity needed to tackle workplace challenges effectively. Your role extends beyond simply resolving disputes—you help clients build the foundation for a workplace culture that values open communication, respect, and collaboration.

How To Provide Impactful Support

Training and development. Offer workshops or resources that teach managers and employees effective communication and conflict resolution skills. These tools empower teams to address disputes early before they escalate.

Policy guidance. Help clients develop and refine policies that address common sources of conflict, such as workplace behavior standards, diversity and inclusion practices, or dispute resolution procedures.

Mediation services. As an external partner, you can step in as a neutral mediator when conflicts become particularly complex or sensitive, ensuring a fair and unbiased resolution process.

Proactive culture-building. Encourage clients to prioritize psychological safety, where employees feel comfortable sharing concerns or disagreements without fear of retaliation. Psychological safety fosters open communication, reduces defensiveness and encourages collaborative problem-solving, all of which are key in resolving workplace conflicts effectively.

REFRAMING CONFLICT AS A DRIVER OF INNOVATION AND IMPROVEMENT

When your clients approach conflict with the right mindset, it can become a catalyst for positive change. Here are a few ways constructive conflict can benefit organizations:

  • Enhanced innovation. Disagreements often bring fresh perspectives to light. By encouraging open dialogue, clients can uncover new ideas or approaches they might not have considered otherwise.
  • Stronger relationships. Successfully navigating conflict can deepen trust among team members, improving collaboration and morale.
  • Skill development. The process of resolving disputes builds valuable skills, such as emotional intelligence, communication, and problem-solving—skills that benefit employees and leaders alike.

PRACTICAL TIPS FOR BUILDING CONFLICT MANAGEMENT SKILLS

Encourage your clients to adopt these best practices for managing conflict effectively:

  • Model the behavior they want to see. Demonstrate respect, active listening, and commitment to problem-solving.
  • Act early. Addressing disputes as soon as they arise prevents them from escalating into more significant problems.
  • Stay neutral. When mediating conflicts, maintain objectivity and focus on solutions rather than assigning blame.
  • Focus on interests, not positions. Help employees move beyond what they want (positions) to why they want it (interests). This shift often reveals shared goals that can lead to win-win solutions.

Clients who view conflict as an opportunity rather than a threat have the power to transform their workplace. With your guidance, they can develop the tools and confidence to manage disputes effectively, creating an environment where collaboration, respect, and innovation thrive.

By embracing these challenges with a proactive and solutions-focused mindset, you establish yourself as a trusted ally in their success. After all, empowering your clients to thrive is the true essence of being a PEO, isn’t it?

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