How Leaders Can Effectively Handle Conflict

There’s no shortage of tense situations managers must navigate today. Pressure to increase productivity, anxiety regarding AI, and economic uncertainty are fueling stress across industries. However, everyday workplace dynamics, such as poor communication, personality clashes, and a lack of trust between coworkers, create just as much tension inside organizations.

The Current State of Workplace Conflict Management

Managers spend 24% of their time managing conflict in the workplace, often without any guarantee of resolving the conflict, according to a study conducted by the American Management Association.

Even senior executives admit conflict management is not their strongest suit. A 2023 survey found that 57% of business leaders cited conflict management as their weakest skill, which can significantly impact company performance and culture.

“Lots of failures at organizations can be traced back to poorly handled conflict,” says Michelle Peterson, former HR leader and current leader of CBIZ’s Career Transition practice.

To identify how managers can address conflict more effectively, we asked experts across CBIZ to share practical guidance.

Tactics to Enhance Conflict Management

Don’t Ignore the Issue

“Conflicts don’t disappear; they deepen and fester,” says Heidi Hoyt, President of CBIZ Talent Solutions.

Avoiding hard conversations or delegating them to HR only worsens the problem. Sometimes, avoidance takes the form of gossip or side conversations, which quietly fuel division and mistrust. The healthier path is to address issues directly, setting a tone of openness and accountability.

“I see this over and over again,” says Heidi. “[Individuals are] worried about saying one wrong word or hitting the wrong tone.”

Listen, Then Talk

Whether dealing with a supervisor, peer, or direct report, people want to feel heard. Active listening – paying attention to both words and nonverbal cues, repeating back key points, and asking follow-up questions – helps uncover the root of a problem and its effect on performance. Suspend assumptions and stay present, even when emotions run high. Assessments can also surface hidden differences in communication style, motivators, and conflict triggers, giving managers insights that conversations alone might not offer.

Use Direct, Respectful Language

Conflict resolution often unravels when toxic communication creeps in. One common culprit is passive-aggressive behavior, i.e., withholding information, making sarcastic remarks, or offering backhanded compliments. While subtle, these actions quietly undermine trust and escalate tension.

Even small acts of rudeness, such as eye-rolling, dismissive comments, or public put-downs, can ripple through a team, according to Robert Sutton’s The No Asshole Rule. This damages morale and culture.

Managers play a critical role in setting the tone. By modeling direct, professional, and respectful communication, they create an environment where disagreements are constructive, not corrosive.

Find a Compromise

Sometimes, the quickest path to resolution is a workable middle ground. Compromise won’t give either party everything they want, but it can allow both sides to move forward productively.

For example, if two managers are in conflict over how to allocate key staff to competing projects, they might agree to rotate resources or temporarily reduce project scope until more support is available. This approach works best when the stakes are moderate, time is short, or a temporary fix is needed while leadership explores longer-term solutions.

Leadership As a Source of Conflict

Not all conflict comes from peers. Sometimes, issues start at the top. Leaders who play favorites, fail to communicate consistently, or use fear-based tactics can create an undercurrent of stress that spreads across the organization. When the conflict driver is the manager, employees often feel powerless to address it. Left unchecked, leadership-driven conflict doesn’t just damage morale, it undermines culture, erodes trust, and can drive top performers out the door.

When Necessary, Make the Call

In high-pressure situations or during a crisis, managers may need to make a decisive call that clearly benefits one side over the other. When that happens, transparency is key. Explain the reasoning behind the decision and outline expectations for how everyone should move forward. While sometimes necessary, this approach should be used sparingly; relying on it too often can leave employees feeling dismissed, overlooked, or resentful.

To reduce the risk of repeated conflicts, organizations can also leverage assessments that highlight differences in communication styles, work preferences, and personality traits. These insights help managers anticipate friction points and make more informed, balanced decisions in the future.

Don’t Forget to Follow Up

Conflict resolution doesn’t end with an agreement. Managers should check back in to ensure commitments are honored and resentment hasn’t resurfaced. If problems persist, bringing all parties back together can help de-escalate tension and prevent a cycle of recurring disputes.

Transform Your Approach to Conflict in the Workplace

Conflict at work is unavoidable, but poorly handled conflict is preventable. When leaders understand the underlying dynamics at play, conflict can be managed more efficiently and effectively.

At CBIZ Talent Solutions, we provide leadership and cultural assessments that reveal how communication styles, motivators, and work preferences shape interactions. These insights help managers anticipate tension, resolve disputes more effectively, and foster healthier team relationships.

With this clarity, organizations can approach conflict not as a disruption, but as an opportunity to strengthen their culture.