Addressing the £1bn financial impact of workplace conflict: The essential role of mediation in Northern Ireland

Published on 17 October 2024
Added by Hannah Smyth
  • North West first to offer post graduate course in mediation

The application of ‘conflict resolution’ strategies to the workplace could significantly reduce the staggering £1billion in costs which the NI economy is forced to bear each year, according to the new Chief Executive of the Labour Relations Agency for Northern Ireland (LRA).

The important cost saving/business improvement message was delivered by Mark McAllister at a mediation event held in Ulster University’s Magee College, in Derry/Londonderry (Wednesday 16 October).

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

The partners of the Mediation Event at UU Magee

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.”

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.

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."