3 Steps to Resolve Employee Conflict in Your Business

Workplace conflict is inevitable. A small comment can quickly escalate, creating tension that affects productivity and morale. Before long, what started with awkward silences has turned into people avoiding each other at the coffee machine and refusing to work together, and then HR gets called in to fix things.

But what if managers were empowered to handle and resolve employee conflicts themselves?

Rather than always stepping in as the 'fixer', HR's role should be to equip managers with the tools they need to resolve conflicts early and independently. Not only does this build better teams, but it also strengthens leadership and improves workplace trust.

Let’s take a look at how managers can spot, navigate, and resolve conflict in three simple steps, rather than outsourcing the hard conversations.

Why Resolving Employee Conflict Feels Challenging (Even for Great Managers)

Most people avoid conflict because it feels uncomfortable. Managers, even experienced ones, aren’t immune to this, and add in packed calendars, competing priorities, and the fear of 'getting it wrong', and it’s no surprise things can get swept under the rug.

Unfortunately, avoiding conflict doesn’t make it go away. It only allows issues to fester and get worse.

That’s where HR comes in, not to fix every issue but to support managers in handling situations before they escalate.

Have things already gone too far? Stop losing sleep over THAT employee.

You're not alone - and you don't have to figure it out on your own. 

What HR Should Be Doing Instead

HR’s job isn't to step in as referee every time there’s tension between team members. It’s about coaching managers to address issues themselves. This helps them lead more effectively and shows employees that concerns will be heard and handled at the team level.

Here’s how HR can guide managers to confidently manage conflict:

Step 1: Spot the Early Signs of Trouble

Most conflicts don’t start with shouting matches. They begin quietly, with small, subtle shifts in behaviour. HR can train managers to spot early warning signs, such as:

• Colleagues who stop collaborating

• Repeated disagreements or minor arguments

• Passive-aggressive comments or sarcasm

• Silent treatment or withdrawal

• Formation of cliques or exclusion from conversations

Often, these are symptoms of deeper issues. Helping managers tune into these signs early gives them the chance to open dialogue before things escalate.

Step 2: Uncover the Root Cause Without Taking Sides

Once a conflict is identified, many managers rush to 'fix' things, but true resolution starts with understanding the problem. Instead of picking sides or making assumptions, consider these four conflict resolution techniques:

1. Empathetic Neutrality

It’s possible to make someone feel heard without picking a side.

Phrases like“That sounds really tough. Let’s talk it through", show empathy while staying neutral.

This builds trust and opens the door to deeper discussion.

2. Ask Exploratory Questions

Rather than jumping straight to solutions, managers should ask open-ended questions to get to the heart of the issue. For example:

• “Can you tell me more about what’s been frustrating you?”

• “What do you think your colleague’s intention was?”

• “How is this affecting your work?”

These questions reduce the emotional charge and can uncover valuable insights.

3. Active Listening

It's not about nodding in the right places. Encourage managers to paraphrase and reflect back what they’ve heard:

• “It sounds like you felt overlooked in that meeting, is that right?”

This shows active listening and helps clear up misunderstandings.

4. Hold Space for Discomfort

Silence is golden. It can be uncomfortable, but it’s often where the real issues come out. Don't rush to fill awkward gaps, but allow pauses in the conversation, giving everyone time to process and speak at their own pace.

Step 3: Move from Venting to Problem-Solving

After emotions have calmed down, it’s time to focus on solutions. HR should guide managers to shift the conversation toward resolution and ownership. Here’s how:

Use Future-Focused Language

Encourage managers to ask questions like:

• “What does a good working relationship look like to you?”

• “If things improved, what would change?”

This helps employees think ahead and envision a positive outcome.

Reality-Test the Solutions

Have managers ask employees about the feasibility of their proposed solutions:

• “Do you think you can follow through on this?”

• “What might get in the way?”

This ensures that solutions are realistic and actionable.

Clarify Escalation Paths

Managers should clearly communicate next steps, whether it’s follow-up meetings or involving HR if necessary. This transparency builds trust and prevents confusion.

Adjust Where Needed

Sometimes, small changes like adjusting schedules or office layouts can ease tension and promote psychological safety, without drama.

Connect to External Support

For deep-rooted issues or ongoing conflicts, managers should feel comfortable suggesting Employee Assistance Programs (EAP) or external support, knowing they don’t have to solve everything alone.

What If The Employee Conflict Has Already Escalated?

There are times when conflict has gone too far and have escalated beyond simple miscommunication, such as issues involving harassment or bullying. In these instances, that’s when it’s appropriate to step in and follow formal processes.

However, for smaller, day-to-day issues, managers should be empowered to handle them with HR’s guidance if needed.

What This Looks Like in Practice

In one business I worked with, the leadership team relied heavily on HR to resolve every interpersonal issue. We changed that approach by implementing three key strategies:

1. Short, tailored training sessions on conflict resolution

2. Simple conflict resolution checklists and templates for managers

3. One-on-one coaching for managers preparing for difficult conversations

Within a few months, we saw fewer escalations, stronger manager confidence, and a noticeable improvement in team morale.

Final Thoughts: Build Confidence, Not Dependence

Workplace conflict is never going to disappear. But how it’s handled can either build stronger teams or quietly unravel them. HR’s role isn’t to be the default fixer but to empower managers to resolve issues effectively.

By giving managers the tools and training they need to address conflict head-on, we can create a workplace where concerns are addressed early, employees feel heard, and teams remain strong. This leads to more resilient and confident leaders who can handle most challenges that come their way.

If you want help building a culture where conflict is resolved at the team level, get in touch.

See what we can do for you, and the HR Support Options available to your business. Let’s make managing HR the least of your worries. 

Need help? Contact us today - sandra@hrconsultingtas.com.au or 0408 408 225  

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