Managing conflicts in small teams: Best Practice for small businesses
Conflict is inevitable in any team dynamic, especially in small teams where individuals work closely together and even in the most well-intentioned environments.
Whether it's a difference in personalities or competing priorities, unresolved conflicts can have a huge impact on productivity, morale, and the success of a small business, where resources are often limited. Because small businesses usually lack a dedicated HR or legal team, managing conflict is even more challenging for owners and managers.
This blog post will arm you with five best practices for managing conflicts in your small business. Implement these strategies and build a positive team culture where individuals view disagreements as opportunities for growth and respond with constructive solutions rather than negativity that impacts the whole team.
Why conflict happens with your employees
According to the CIPD’s latest report, one in four UK employees[1] — approximately eight million people — have come across workplace conflict in the past year, costing businesses nearly £30bn a year[2].
Conflict among employees can arise for many reasons, often rooted in the complexities of human interactions at work. Because each person has their own perspectives, shaped by their unique experiences, values, and beliefs, what seems logical to one person may not make sense to another because they view the situation differently. When these values or priorities clash — such as one employee emphasising speed while another focuses on quality — tensions arise.
Secondly, people communicate in different ways. Some are direct, while others are more reserved. These differences can lead to misunderstandings, even when no one intends to cause conflict. For example, if managers and employees have different expectations about project deadlines that are not communicated, it can leave employees feeling unfairly judged and managers unhappy with the results.
Thirdly, working in a small business environment often means employees have different goals. One employee might prioritise meeting tight deadlines for quick revenue, while another focuses on high-quality work, even if it takes longer. This clash of priorities, speed versus quality, can cause frustration and tension between team members.
Plus, if employees feel they are not provided with adequate resources or support to complete their tasks effectively, managers might be seen as neglecting to address these needs, leading to frustration and disputes.
Lastly, competing for rewards, recognition, or resources can heighten tensions. When opportunities are limited, the race for these rewards can create stress and lead to conflicts, as employees may feel pressured to outshine their colleagues, straining relationships and disrupting teamwork.
Conflict isn’t all doom and gloom, though.
Even though some conflict can harm your small business, it’s a normal part of life and an opportunity to learn and grow rather than something to avoid. When handled well, conflicts can lead to better solutions and stronger relationships.
Best practices for managing conflicts
Understanding the root causes is the first step in effectively managing and resolving conflicts in your small team. By being aware of the potential for disagreements amongst your people and addressing the underlying issues, you can create a more harmonious and productive work environment.
Follow our best practices and practical strategies to maintain a positive and effective workplace.
1. Encourage open communication
Communication is increasingly becoming tied to work and, in some cases, overwork. The sheer volume of messages and constant notifications workers receive on multiple communication channels can overwhelm employees and line managers, making it difficult to manage and understand information well.
As HR colleagues spend an average of 47 hours per week on communication alone, this increase can lead to burnout and added stress that infringes on personal time. Case in point: almost a third of UK employees[3] left their jobs due to a toxic workplace culture.
With miscommunication in the workplace being a common issue, affecting everything from costs to staff morale, finding solutions to improve communication can help reduce conflict and support employees' work together. Encourage open communication and reduce the potential for friction by:
- Creating a culture of transparency and openness. Implement regular feedback sessions where employees can share their thoughts and concerns openly. This helps to address issues early and fosters a sense of trust and inclusivity.
Supercharge communication across your small business with Appogee HR Success. Use a company newsfeed to communicate new company policies, progress, and changes.
- Applying techniques for facilitating honest conversations. Empower your people to set their own guidelines for respectful communication, ensuring everyone understands the importance of listening and maintaining confidentiality.
Demonstrate how active listening can tackle conflict in the workplace. Offer active listening practice sessions that allow employees to ask open-ended questions and acknowledge each others’ views and perspectives.
2. Address issues early
Let's imagine Alex and Sam disagree on the project timeline: Alex feels Sam is delaying work, while Sam thinks Alex’s deadlines are too tight. The team leader addresses this early by holding separate meetings to understand their perspectives, discovering that Alex’s deadlines are causing stress for Sam, who needs more time for quality work.
The leader then brings Alex and Sam together in a joint meeting to discuss their concerns and find a solution. They agree on a more realistic timeline for quality checks and meeting key milestones. The manager follows up to ensure the new plan is effective and no further issues arise.
In this example, the manager’s approach demonstrates good conflict resolution practices, which can be used as a model for handling future disputes.
Performance management software can help you to tackle issues early. Whether you need 360 feedback, self-assessment, or information about probation, our tools can keep important information in one place.
Tackle conflict early in your small business by:
- Paying close attention to team dynamics. Observe interactions with team members, looking at any changes in team behaviour or communication patterns that may signal issues.
- Normalising conflict resolution. Make it clear that addressing conflicts early is a normal part of workplace culture and that it’s a proactive step toward maintaining a healthy environment.
- Having regular check-ins: Schedule one-on-one meetings or team huddles to gauge employee satisfaction and identify any concerns. Staff location recording features allow you to see which days staff are working at home or in the office to schedule check-ins.
3. Establish clear roles and expectations
When conflicts happen, clearly defined roles help avoid confusion and overlapping responsibilities by making sure only the right people are involved. This clarity reduces miscommunication and makes it easier to find a solution quickly.
Not only that, but when everyone knows their responsibilities and what is expected of them, misunderstandings and disputes are less likely to arise to start with.
Deal with team tensions by:
- Communicating roles and expectations clearly. Use onboarding processes, team meetings, and performance development review meetings to explain who handles what tasks and decisions.
4. Train line managers to confidently tackle conflict head-on
Although one in four people[4] in the UK workforce holds a management role, only 27% of workers describe their manager as 'highly effective.' Although trust in leadership and management is improving, there’s ample room for improvement.
Managers without proper training may address only the surface issues of a conflict, failing to resolve underlying problems. This can lead to recurring disputes and unresolved tensions.
The good news is that when leaders communicate clearly and tackle conflict well by leading and supporting change, 95% of employees[5] say they fully trust their leaders. Proper conflict resolution training not only addresses immediate issues but also tackles underlying problems. This approach creates a more focused work environment by allowing employees to concentrate on their tasks and work more effectively.
Upskill your managers to manage conflict well by:
- Investing in flexible learning programmes. Taking time away from work for training can be a struggle. By offering online courses or webinars focused on conflict resolution allows senior staff to learn new skills at their own pace and access valuable resources.
- Offering coaching and networking opportunities. Arrange one-on-one coaching sessions with conflict resolution experts to address specific challenges. Equip managers with the skills to develop tailored strategies for handling future conflicts effectively.
5. Review policies and procedures
Policies and procedures play a crucial role in managing and resolving workplace conflicts. They provide a structured approach that helps ensure conflicts are addressed fairly and consistently.
Robust policies provide a clear process for reporting and resolving conflicts, outlining the steps employees and managers should follow. This framework ensures conflicts are addressed fairly and transparently, including procedures for mediation, investigation, and resolution.
That said, policies are only effective if employees not only know and understand them, but also the reasons behind them. This understanding fosters greater compliance and support. For instance, an outdated Code of Conduct that doesn’t reflect recent legal changes can cause confusion and lead to issues among employees.
Review your internal company policies by:
- Responding to changes in a timely way. Policies should be reviewed and updated regularly to reflect changes in the law, organisational structure, or business practices.
- Involving employees, customers, and stakeholders in policy reviews. Update policies based on feedback from employees and managers to ensure they remain practical and effective in addressing current issues.
- Document the learning from the previous conflict. Records of conflicts and resolutions are gold-dust when it comes to updating company policies. By identifying patterns, you can refine existing procedures and develop more effective procedures.
Handling conflicts that escalate
Worryingly, 47% of employees’ most common response to conflict was to simply “let it go.” When disagreements are ignored rather than dealt with productively, the impact can seriously harm your small business
Unresolved issues make the workplace stressful and can reduce job satisfaction. Tensions can hurt relationships between team members and managers and worsen in small environments where working with other managers or colleagues isn’t an option.
Even more, small issues can often grow into bigger problems. Employees who feel conflicts are not addressed may become less willing to collaborate and share ideas or leave the company. It’s critical to recognise when to step in and when to empower employees to resolve problems independently.
Step one: Watch for signs that a conflict is escalating beyond the team’s ability to resolve it internally. This may be persistent behaviour or frequent arguments between certain people or groups. Identifying these signs early can help address the problem before it escalates.
Step two: Get instant access to information about your employees. Appogee HR reporting tools allow you to create, filter, and save meaningful, critical reports about specific employees and their performance – allowing you to make informed decisions.
Step two: Involve HR when the conflict becomes too complex to handle alone, when legal or compliance issues arise, or when the situation affects the broader workplace environment. HR can provide the necessary support and guidance to ensure the conflict is resolved effectively and fairly.
Build a resilient and engaged team
A well-managed team is not only more resilient in meeting challenges and adapting well to constant changes but also more engaged and motivated to contribute to the success of your business.
Proactive conflict management has huge long-term benefits. By addressing conflicts early and effectively, you can improve collaboration, boost productivity, and sustain a more cohesive team.
Invest time and effort into conflict management today and build a stronger, more harmonious team for tomorrow with Appogee HR. Schedule a demo today to find out more.
Sources:
[1] CIPD
[2] University of Sheffield
[3] HR Magazine
[4] CMI
[5] Gallup
[6] CIPD