The cardinal rule of handling problems between employees is don't ignore the issue. Any conflict that lasts more than a day or two must be dealt with head-on. Allowing inter-employee conflicts to fester results in reduced productivity, lower morale, and can strongly influence the level of respect the workers have for you, the owner.

Employer as Mediator

The role of a mediator is to hear both sides of a conflict and recommend the best resolution based on logical, non-emotional consideration. Your best bet is to listen to each side separately. Allow each involved employee to vent without judgment. Try to listen for any underlying issues -- does the worker feel disrespected? Underappreciated? Is there some other issue between these two workers? Understanding any ongoing, unrelated issues will help you find a more lasting solution to help the employees return to productivity.

Ask each involved party how they think the problem should be resolved, including what they could do differently the next time to avoid conflict. Encourage ideas that reflect cooperation. Once you arrive at a solution, again speak with each employee. Be very clear about what you expect of them, and consider ways to hold them accountable for following your directions.

If either party behaved in a particularly unacceptable manner, be sure to address that immediately. While it is important to be fair, it is even more important to maintain control over your business. You set policies for a reason, and the emotional outbursts of conflict are not justification to violate those policies. Follow the established code of conduct, then deal with the underlying issues that are forcing you to play the role of mediator.

An Ounce of Prevention for Employee Conflicts

Dealing with internal conflict is never easy, but there are a few things you can do before problems start to reduce their frequency and intensity. As you are building your business, you are also building the overall company culture. Be cognizant of how you deal with conflict, because your leadership will guide the behavior of your staff -- for better or worse. Encourage a culture of cooperation, integrity, and open communication. By making these traits standard from the beginning, you will be able to eliminate many employee issues before they start. Standard management principles advise that you get what you give, as well as what you expect, reward, and put up with from your staff.

As your venture grows, your key personnel will need strong conflict resolution skills to manage lower-level employees. Build these skills into your training program, and look for these skills before you hire through the use of targeted interview questions. When conflicts arise and are resolved, share the outcomes with your management team -- actual lessons-learned tend to have a stronger impact than simplistic how-to manuals.

The role of employer can be a difficult one for entrepreneurs to embrace. Just remember that your employees cannot be just like you -- if they were, they'd be running their own business instead of yours. Be as empathetic as possible without becoming everyone's personal counselor. Develop a strong foundation of the culture you want your company to have, then reward those that strengthen the culture and handle those that don't.