Develop Leadership Skills to Cut Workplace Drama and Save Money

Workplace drama isn’t just exhausting. It’s expensive.

Leaders typically spend more than 10% of their time managing conflicts between employees. That’s time they could spend on strategy, growth, and the work that moves the business forward. And the costs don’t stop there. Presenteeism, absenteeism, sluggish productivity, and turnover all chip away at companies’ bottom lines, often quietly, often for months before anyone connects the dots.

The challenge for leaders is knowing what to do before tension turns into fallout. That means recognizing the early signs of conflict and creating a culture where accountability and trust can exist at the same time. When leaders have those skills, they don’t just calm conflict in the moment — they keep it from taking root in the first place.

Kim Laughlin, owner of Cultural Apex Coaching, said at SHRM26 in Orlando that employees respond best to a direct approach. 

“It’s OK that they get upset because usually they know exactly what’s going on, and they’re upset with themselves. Period,” Laughlin said. “Become trusted leaders and you will not have to worry about that.”

Toolkit: Navigate Workplace Conflict for a Better Work Environment

Power Skills That Boost Team Effectiveness

Strong leaders build the skills that stop tension before it spreads.

“You feel like 1-on-1s are kind of rinse and repeat, but it’s not,” Laughlin said. “I tell people do it once a month because your team is your lifeblood. If leaders do it (at least) quarterly, they’re going to hear the little nuances that are happening. They’re going to get ahead of the issues.”

Focus on these areas to strengthen your team and your leaders:

• Set clear expectations from the start: Most workplace conflict grows in the gap between what people assume and what’s actually expected. Spell out roles, behaviors, and goals so no one has to guess. Clarity removes the fuel that drama feeds on.
• Communicate with intention: Effective communication is about being understood. Encourage leaders to say what they mean directly, check for understanding, and create space for honest dialogue. Consider pairing new leaders with experienced leaders to see how they communicate.
• Build awareness of communication styles: Tools such as the DiSC assessment or Myers-Briggs help leaders recognize that people process, speak, and react differently. When a leader understands these differences, they stop reading bad intent into what's simply a different style.
• Give feedback while it still matters: Problems left unaddressed grow louder, not quieter. Coach leaders to deliver timely, specific feedback so small issues get resolved before they become full-blown disputes.
• Hire and promote for leadership, not just technical skill: A brilliant specialist isn't always a strong leader. When you advance people based on their ability to communicate, listen, and guide others, you build a management team that prevents drama instead of creating it.

Toolkit: Developing Organizational Leaders

How to Model the Behavior You Want to See

Skills matter, but culture is what makes them stick. Leaders set the tone every day, and people watch what leaders do far more closely than what they say. To create a culture of accountability and respect, start with how you show up:

• Hold everyone to the same standard: Accountability and respect can't be selective. When you apply expectations consistently — regardless of who's involved or how much you like them — you build trust and protect your organization from claims of unfair treatment. “By the way, how many does it take to ruin a culture? One,” Laughlin said. “And that’s a really scary number.”
• Make one-on-one meetings a habit: Regular check-ins give you a window into tension before it escalates. They show your team you're paying attention, and they create a safe space for people to raise concerns early.
• Listen with intention: Mindful, focused listening tells employees their voices matter. Put down the phone, ask follow-up questions, and listen to understand rather than to respond. People who feel heard are far less likely to act out.
• Document behaviors as you go: Keep clear records of conduct, both good and concerning. Documentation protects you legally, supports fair decisions, and removes the guesswork when you need to address a pattern.
• Lead with renewed purpose: When leaders reconnect to why their work matters, that energy spreads. A clear sense of purpose inspires people to show up better, treat one another with respect, and take ownership of the culture you're building together.

How-To Guide: How to Put Servant Leadership into Practice

Turn Leadership into Your Competitive Advantage

Workplace drama drains time, money, and morale. But you have the power to change that. By developing strong power skills and modeling the behavior you want to see, you create a culture where people focus on their work instead of their grievances.

Start small. Pick one skill to strengthen this month, whether it's setting clearer expectations or carrying out consistent one-on-ones. Then build from there. Every step you take toward stronger leadership is a step toward a healthier, more productive, and more profitable workplace.

Your role as an HR professional puts you at the center of this work. Lead the way, and your organization will feel the difference all the way down to the balance sheet.

Member Benefit: Ask an HR Advisor