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Corporate Facilitation
& Training for:

Managing
Workplace Conflict,

Manager as Mediator,
Self Mediation,
Managing Differences

Personal Coaching for
Individuals & Public
Workshops, Seminars

The Relating Institute - Measurable Solutions for
Employee Retention and Interpersonal Conflict Resolution
“How to Build Better Relationships at Work and Home”

Business Case:

   Unmanaged employee conflict is perhaps the largest reducible cost in organizations today and probably the least recognized. It is estimated that over 65% of performance problems result from strained interpersonal relationships between employees, not from deficits in individual employees' skill or motivation.

Facts about cost factor #3 - Staff Turnover

     Exit interviews reveal that chronic unresolved interpersonal conflict acts as a decisive factor in at least 50% of all involuntary departures, with the probable exception of staff reductions due to downsizing, restructuring and corporate raiding. Raytheon Corporation determined that replacing an engineer costs 150% of his/her total annual compensation.

   Preventing just one single incidence of staff turnover would provide an ROI of the
“Managing Workplace Conflict ” training many times over. Most people determine their
ROI to be at least 1000% (i.e., cost savings are at least ten times the cost of training).

     Using these facts as a benchmark, here is a simple calculation of the cost of a 10% involuntary staff turnover based on 100 employees with an employee salary of $100,000.

                                     Employee Salary        $100,000
                                     X 10                         $1,000,000 total salary
                                     -  50%                       $500,000

Cost to replace 5 employees at 150% of salary    $250,000
less the cost of annual salary.

Cost to train 100 employees @ $300 per head    $30,000

Return on investment in Training                         $220,000

Contact us today to receive a free introductory consulting session on
Measuring the Financial Cost of Conflict in your Organization
and calculating Your Return on Investment (ROI)
for “Managing Workplace Conflict” Training

Copyright - 2005 - 2007 The Relating Institute

 

Some Content
Adapted by permission of Dana Mediation Institute, Inc.