Resolving Conflicts Effectively: When to Engage in Mediation

Workplaces thrive on diversity—different opinions, perspectives, and communication styles fuel innovation. These are the things that make us, and the relationships we build, unique. But with diversity comes conflict, and when differences surface, conflict isn’t just possible, it’s inevitable.  

The real challenge? 

It’s not avoiding conflict altogether (spoiler: you won’t). It’s knowing how to engage with it in ways that promote understanding rather than division, when it does. That’s where mediation comes in.  

This article explores how mediation can help navigate workplace disputes before they get out of hand. Mediation transforms workplace disputes into opportunities for understanding, collaboration, and stronger relationships.

How Mediation Resolves Workplace Conflict 

Mediation is a voluntary process guided by a neutral third party (the Mediator), who supports those in conflict to find common ground. The mediator’s role is to enable the participants to communicate more effectively, get to the underlying issues, and find mutually agreeable solutions. Unlike arbitration or litigation, the mediator does not impose a decision or opinion.  Instead, they create a structured space for open dialogue, helping participants uncover root issues and agree on mutually beneficial outcomes.

In the workplace, mediation is especially valuable when tensions are high but maintaining relationships matters. It allows colleagues to move beyond surface-level disagreements, unpack emotional dynamics, and rebuild trust. It’s confidential, respectful, and gives participants a sense of ownership over outcomes, because the solution comes from them; not for them.

Mediation vs. Facilitated Discussions: Key Differences

Understanding the distinctions between mediation and facilitated discussions can help determine which approach best fits a particular workplace situation.  

Here are the key differences:

1. Objective  
   • Mediation: Aims to resolve disputes between parties.
   • Facilitated Discussions: Focus on improving communication and understanding before conflicts escalate.
2. Formality
   • Mediation: A more structured process.
   • Facilitated Discussions: Generally, less formal and serve as an early intervention tool.
3. Timing  
   • Mediation: Recommended when conflict has already intensified and relationships are strained.
   • Facilitated Discussions: Best suited for addressing emerging tensions to prevent escalation.
4. Outcome  
   • Mediation: Seeks a mutually agreed resolution to a dispute.
   • Facilitated Discussions: Aim to strengthen working relationships and rebuild trust. 

The Business Case for Mediation: Evidence-Based Benefits

Research confirms that unresolved workplace conflict has measurable costs:

Productivity Loss & Absenteeism  

A 2022 study found that interpersonal conflict correlates with increased unplanned sick days as employees disengage to avoid tension or are otherwise not as focused on their work as they might like to be. 

Turnover Risk  

Conflict is a key predictor of employees quitting. Research shows it fuels burnout and erodes loyalty, especially when left unaddressed. Whether staff feel unsupported, or the working environment has become too awkward, conflict resolution services address the elephant in the room with the safety of a neutral mediator.

Mediation directly counters these risks by:

1. Reducing Disruptions. Structured dialogue cuts through unproductive cycles, minimising distractions and absenteeism.
2. Repairing Relationships. Neutral mediation rebuilds trust, preserving team cohesion.
3. Providing Accountability. Signed agreements create clear, mutually owned solutions—unlike top-down mandates.  

When is it time to engage a mediator? 

Consider mediation when:

• Communication has broken down.
• Previous discussions failed to resolve the issue.
• Both parties want to find common ground.  

Altius’s Mediation Process: A Structured Path to Resolution  

Altius adheres to the Resolution Institute Model of Dispute Resolution—a globally recognised framework grounded in impartiality, confidentiality, and voluntary participation. This evidence-based approach ensures fairness and empowers participants to drive outcomes.

STEP 1: Pre-Mediation Services

• One-on-one Consultation: A neutral referring party (such as a manager or HR representative) meet with the mediator to provide context, outline the nature of conflict, and identify key factors that may shape the mediation process.
• Private Sessions: Each participant gets a 90-minute confidential meeting to:
  • Build trust with the mediator.
  • Explore each person’s perspective and identify core concerns.
  • Assess readiness to engage in meaningful dialogue and supports them in preparing for the next step. 

STEP 2: Group Mediation (Up to 4 Hours)

• Facilitated Discussion: The mediator guides the open dialogue and remains neutral to encourage active listening and ensure a safe, respectful environment with ample time for thoughtful communication.
• Session Breaks: Pauses help manage emotional intensity and encourage clarity.
• Actionable Outcomes: Participants are prompted to identify actionable changes and agreed standards for future communication. These commitments are formalised in a signed agreement, which marks a meaningful step toward restoring trust and rebuilding their working relationship.

Take the Next Step

If your team could benefit from our Mediation or Conflict Resolution services, contact Altius at 1800 433 966, email referrals@altius-group.com.au, or visit altius.au.

Written by Talia Markna, Provisional Psychologist at PeopleSense: Psychology & Wellbeing by Altius and Senior Workplace Services Coordinator. Talia is currently completing her Master of Organisational Psychology at Macquarie University.