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The Damaging Impact of Unresolved Conflict on Teams

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7 MIN READ

The Damaging Impact of Unresolved Conflict on Teams

Unresolved conflict is one of the most underestimated threats to team health, performance and overall organizational effectiveness. While occasional disagreements are normal and even healthy, the danger emerges when these tensions go unresolved within teams: communication can break down, collaboration can stall and trust can start to fracture. 

Sometimes the signs are subtle shifts in team dynamics or gradual dips in performance, but the risks to your business goals are very real. That’s why it’s critical for leaders to learn how to recognize, prevent and resolve conflict in teams before it has the chance to cause irreparable damage.

The Hidden Cost of Unresolved Conflict

At the individual level, it’s no surprise that unresolved conflict can take a serious toll. Workplace conflict in particular can be massively impactful, as it has the power to drain focus, cloud judgement and erode overall well-being, leaving people frustrated, stressed and less effective as a whole. Some of the more well-known consequences of unresolved workplace conflict include:

1. Deterioration of Psychological Safety and Trust

When team members feel unsafe or uncomfortable speaking up or expressing concerns due to conflict, psychological safety takes a hit. Honest conversations and feedback become rare. Some employees may fear blame, judgment or retaliation, so they stay silent. This erodes trust across the entire team. 

2. Decline in Employee Engagement and Morale

Constant tension or unresolved problems can leave employees feeling ignored, undervalued or unappreciated. They may lose their motivation and withdraw from actively contributing. This response to conflict shouldn’t be taken lightly, as it can spread throughout the entire team, resulting in disengaged employees who emotionally check out or “quiet quit.”

This disengagement also makes employees less likely to propose new ideas, stifling innovation and leaving teams stuck in outdated habits.

3. Breakdown of Collaboration and Team Culture

Teams thrive most when communication is open and goals are shared, but unresolved conflict breeds silos and cliques. Instead of collaborating, team members may avoid, withhold information from or undermine one another. These actions weaken the team’s ability to work together and breed a culture of gossip, backchannels and defensiveness, limiting performance and fueling even more conflict.

4. Interruption of Performance and Productivity

Focused work becomes more challenging when people are distracted by workplace tensions. Team members may spend more time worrying, venting or navigating conflict than building skills and completing business tasks. And leaders spend more time putting out fires and managing workplace disputes than leading work that actually moves the needle.

5. Strained Workplace Relationships

Professional relationships deteriorate rapidly if conflict remains unresolved. Colleagues may avoid each other in meetings or collaborate grudgingly. Unfortunately, this tension seeps through the team and affects group dynamics, making the workplace environment uncomfortable and unproductive for everyone.

It’s important to keep in mind that, when left unresolved, conflict doesn’t stay personal. Over time, it becomes a major organizational risk. Unresolved conflict can quietly (and quickly) drain energy, trust and productivity from your workplace, slowing your entire organization down by causing:

  • Absenteeism and presenteeism: Employees affected by conflict may be more likely to call in sick or underperform, resulting in lost productivity.
  • Increased turnover: Dissatisfied employees tend to leave for better support and a more favorable workplace culture. Recruiting, onboarding and training replacements is costly. Gallup reports that the replacement of team members can cost between 40% and 200% of the employee’s salary. Not to mention the loss of institutional knowledge, split alliances and a toxic reputation make it even more challenging to recruit and retain top talent.
  • Burnout: Constant stress and unresolved issues can physically and mentally exhaust team members, which information published in the American Journal of Preventive Medicine confirms reduces productivity and increases health care costs.
  • Legal risks and safety: Unresolved conflict can escalate to harassment, bullying or even violence. This holds your team back and opens the door to costly lawsuits and a damaged reputation.

How to Spot the Early Warning Signs 

In the end, it’s the leader’s role to recognize the signs of conflict early so they can address issues before they escalate and affect the rest of the team. Below are some of the common warning signs of conflict that leaders can learn to watch out for.

Observable Behaviors

Individuals’ actions or reactions during interactions can provide clues to their feelings or the team’s overall mood. Repeated confusion over instructions or project goals or an uptick in clarifying questions can signal deeper disconnects. People who used to be friendly may become short-tempered, stop participating or express puzzling or increasingly emotional comments.

Other examples include:

  • Passive-aggressive remarks or sarcasm: Offhand comments, jokes at others’ expense or backhanded compliments may reflect unspoken frustration.
  • Decision paralysis or stalled momentum: If projects suddenly slow or decisions linger unresolved, it could be because team members struggle to align due to interpersonal issues.
  • Changes in body language or mood: Tense posture, forced politeness, a lack of eye contact or team members going silent when they’re usually outspoken are all red flags.

Communication Cues

Verbal and nonverbal signals can indicate how individuals are feeling at any given time. These cues include tone of voice, body language and word choice. During meetings, note if team members react to feedback with irritation, shift blame or refuse to own up to mistakes. Employees who once participated eagerly may now keep to themselves or avoid group discussions. Others may brush off or outright dismiss ideas with little to no discussion.

A rise in negative comments, lower satisfaction or low scores around teamwork and communication can also indicate unresolved conflict. Leaders might see an increase in formal grievances, HR complaints or the need for disciplinary procedures.

Team-Level Symptoms

At a high-level, there are usually some collective indicators within a group setting that can suggest the presence of conflict. Here are some examples:

  • Reduced collaboration: There are fewer brainstorming sessions, less knowledge-sharing and a reluctance to help each other with tasks.
  • Rising gossip and complaints: More rumors, informal complaints and “side conversations” about colleagues happen around the office.
  • Decline in morale and engagement: Teams seem flat or disengaged. Even small wins lack the usual enthusiasm.
  • Loss of discretionary effort: Employees do only the bare minimum and leave promptly. Participation in voluntary projects wanes.
  • Performance and workload issues: Some employees may quietly resent others and create disputes about task distribution.

Build Conflict-Resilient Teams With CLS

Many organizations make the mistake of ignoring minor disputes or hoping tension will simply disappear on its own. However, the real damage occurs when conflict is avoided or mishandled. No team is free of conflict, but leaders can empower teams to face issues, work through them together and emerge even stronger.

Our Managing Conflict course is designed specifically to help leaders and teams develop the essential skills required for healthy conflict management and building resilient teams. 

Shift from fearing conflict to using it for team and organizational growth. Explore our Managing Conflict course.

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