Small business owners may create conflict in the workplace, intentionally or unintentionally, due to a variety of reasons, often tied to stress, personal investment, & leadership challenges.
Owners who feel a deep attachment to their business may struggle when they have imposter syndrome. I imagine that all of us at some point struggle with believing in ourselves & our business. When this happens, it becomes hard to delegate, to trust others, especially when as a small business owner, you don’t necessarily believe in yourself. Then, where you may be working with others these insecurities can manifest as micromanagement leaving colleagues undervalued or restricted.
Many small business owners juggle multiple responsibilities, which can lead to unclear, curtailed instructions, shifting expectations, or just confusion. Incomplete or unfinished messages can leave the next person looking incompetent, because you have not shared or identified all the relevant information. This naturally creates frustration & distrust plus it can have a negative impact on your reputation, making it harder to work with that person next time.
Because their business is personal, owners might make impulsive or emotionally driven decisions, rather than objective ones. This can result in favouritism or inconsistent leadership. For many small business owners limited cash flow can lead to tight budgets causing stress, payment disputes, unrealistic workload expectations, or tension over resource allocation. Plus many business owners are resistance to feedback, whether good or bad or being or are often not open to new ideas or the fear that making a change that could lead to failure. All pf which can result in a stagnated approach & can only ingrain the potential imposter syndrome I have already mentioned.
As a small business owner, it is inevitable that you will encounter periods where you have to address an unpleasant set of circumstances. Whether this is of your own creation or not, you may find yourself stuck slap bang in the middle of a situation that is difficult to address. Many business owners me included, tend towards people pleasing. This, in itself, is not a bad thing, but when it comes to difficult situations, wearing this hat can make dealing with issues so much more difficult.
Dealing with confrontation is inherently challenging, particularly for small business owners who often view their enterprise as an extension of themselves. When disputes arise, they can feel deeply personal, leading to stress, anxiety, & even depression. When unpleasant situations continue unabated for any length of time this can lead to a toxic environment for all those concerned. Something that might have been an easy fix on day one can become unresolvable, purely due to the time between it happening & the start of a resolution process.
It is worth noting that according to the Chartered Institute of Personnel & Development (CIPD), 25% of UK employees1 experienced workplace conflict in the past year, with many reporting lower job satisfaction & poorer mental & physical health as a result. For small business owners, the stakes are even higher. The close-knit nature of small teams & extended working partnerships means that conflicts can disrupt not only professional relationships but also personal dynamics, making resolutions emotionally taxing & time consuming.
While confronting issues directly can be uncomfortable, the benefits of doing so are substantial.
Addressing conflicts promptly can prevent escalation, fostering a more collaborative & positive work environment & keep your workplace harmony balanced. Resolving disputes allows people to focus on the tasks in their business without the distraction of ongoing tensions. Therefore, creating more productivity, as your energies can be directed into the jobs that generate revenue & enhance your reputation rather than being syphoned away into the bottomless pits of despair.
It is also worth noting that, what might be a huge issue for you, maybe a miniscule issue for the other person. You may be offended by a passing comment, that the other person has not registered as being upsetting. This kind of scenario means you are stuck at a point in the past when everyone else has moved on & beyond that moment. You may linger here & build up resentment. The takeaway at this moment is that you give yourself permission to start your conflict & to get stuck at this point. I am not diminishing the impact this might have on your self-worth, but it has to be better to say something at the time. The other person will probably be mortified that they have offended you & will apologise instantly. After which no more need be said.
Unresolved conflicts add costs to a business. Did you know that workplace conflict costs UK employers nearly £30 billion annually?2 How much time have you spent on dealing with the all-consuming aspect of conflicts? If you grasp the nettle from day one, although it may be unpleasant & out of your comfort zone, you can mitigate the negative effects of unresolved issues.
Lastly, if you act speedily & professionally, where others are involved, they will see hopefully what steps you have taken & that you have acted fairly & with wisdom to reach a balanced & sustainable outcome. Of course, sometimes circumstances will not follow your desired path & that is OK. If you have been genuine, honest & behaved with decency then this may still be the best resolution for all involved.
Neglecting to address conflicts can lead to several detrimental outcomes. Most notably is that unresolved disputes can intensify over time, leading to more severe problems that are harder to manage. They lead to everyone feeling undervalued or ignored. If their concerns are not addressed this can lead to decreased morale, motivation & engagement. In the worst-case scenario, unresolved tensions can lead to formal grievances or even legal action, further straining resources & reputation.
The lingering magnification of one slight will amplify the next & very quickly you have lost control of the situation. I am not suggesting for one moment that it is not awful to be on the receiving end of another person’s ire, but that doesn’t mean you should not work to an amicable resolution. It is worth remembering what may feel very real to you is not necessarily someone else’s reality. What you internalise no one else can imagine. So, if you don’t speak out the other person involved probably has no idea. They may only get a glimmer of your problem many months down the line, when you have created a mountain out of a mole hill.
There are two sides to every story. In the small business settings, unresolved conflicts can often give rise to gossip & unsolicited third-party involvement, which can exacerbate the situation.
As information spreads informally, details can become misconstrued & embellished, leading to misunderstandings & further conflict. Imagine how you might feel if that other people are chattering about you behind your back, about a situation that you may not even be aware of, & you become aware someone not directly involved? This is unkind & is certainly unfair & I suspect might make you feel sick to your stomach.
Your feelings are valid, but it is not a valid response to gossip or spread rumours. I am sure if the shoe was on the other foot you’d want to be able to defend yourself without all the back-chatter?
In this modern world we are all so easily offended on behalf of others, that we don’t stop to understand what is going on. For the most part if we are not directly impacted, then it is probably not really any of our business. It is so easy to become a keyboard warrior or to stand on your soap box to shout about something where you only have a portion of the facts.
Persistent gossip & back-channel discussions can create a hostile atmosphere, affecting not only the people directly involved, but their business community overall, which will result in a loss of credibility. While some experts suggest that positive gossip3 can help form social bonds, negative gossip involving rumours & false or misleading accusations can harm individuals' reputations & mental health, leading to a toxic environment.
To navigate confrontation effectively:
When conflict occurs, you need time to find a resolution. Humans are designed with the flight or fight response. It can often feel easier & the path of least resistance to follow your instincts to flee or try & ignore what is going on. Finding a resolution will not happen from a single conversation, particularly if the problem is entrenched. Understand, that to get the best outcome for both parties it requires time & a reasonable amount of talking. Sometimes this might need to be moderated where you are heard & understood. You need to embrace the process because no one else can really speak on your behalf.
While confronting difficult situations head-on may cause short-term discomfort, it is a necessary step to prevent prolonged stress & more severe complications in the future. By proactively addressing conflicts, small business owners can cultivate a healthier work environment, improve self-esteem, & safeguard their business's longevity.
Remember, a problem shared is not always a problem halved. Involving others indiscriminately can amplify issues rather than resolve them. As a leader, which all small business owners are, embracing the responsibility to manage confrontations directly & thoughtfully is key to maintaining a resilient & thriving business reputation.