Most of us don’t go into business with a formal guide on how to resolve conflicts or manage employees. In fact, many small business owners—especially those who are just starting or growing their business—don’t have extensive training in leadership or conflict resolution. Sure, there are thousands of books, articles, coaching seminars, and even expensive training programs that promise to teach leadership and management techniques, but when you’re just hiring your first few team members and they begin to work together, that’s when the real learning happens.
Employees are not just cogs in a machine—they bring different personalities, experiences, and sometimes, conflict. And while conflict in any team is inevitable, how you respond to it is what really counts. You’ll quickly realize that resolving concerns early on and handling disagreements effectively will set the tone for your team’s culture and productivity. Here’s the deal: it’s not just about the issue at hand, but about how you address it and set expectations that will guide your growing business and workforce.
Whether you’re dealing with your first employee or a team of 10, setting clear expectations from the beginning is the best way to avoid confusion, misunderstandings, and unnecessary conflicts later on. Here are some foundational things to consider when it comes to expectations:
When conflicts or concerns inevitably arise, the way you handle them can make all the difference. Here’s a simple, practical approach for addressing these situations:
Before making any judgments, take time to understand both sides of the story. Conflict often stems from misunderstanding, so don’t jump to conclusions. Make sure you hear from both parties involved in the issue before deciding on the next steps.
Public confrontations only escalate matters. If there’s a disagreement or performance concern, it’s always best to address it privately. You can’t have an honest, open conversation if other team members are involved in the discussion. A one-on-one meeting allows everyone to speak openly and to work through the issue without the added pressure of an audience.
When you do address the concern, stick to the facts and be clear about what went wrong and how it can be improved. Don’t sugarcoat the issue, but always approach it with respect. For example, if an employee’s behavior is disruptive, explain how it affects the team and the company, and what changes need to be made moving forward.
It’s easy to get caught up in who’s at fault, but that doesn’t solve the problem. Focus on finding a solution. What can the individual do differently? What support might they need? Focusing on how to move forward and improve helps keep the conversation productive and helps the employee feel empowered to make positive changes.
Once the issue is addressed, outline clear steps for how things should change. If the behavior or issue is a repeat occurrence, make sure to explain the consequences of continued violations. Be transparent about what might happen if things don’t improve.
After the discussion, don’t just let it go. Check in with the individual to see if the issue is being resolved, if they need further support, or if anything else has come up. This shows that you’re invested in their success and committed to a healthy work environment.
The way you handle these situations will inevitably set the tone for your team. If your response to concerns or conflicts is inconsistent or if you let bad behavior slide, it creates a culture where employees may feel that they don’t need to follow the rules. Worse yet, they might even start teaching new team members that these behaviors are acceptable.
As your company grows, the behavior and work ethic of your current employees will shape the culture for future team members. If your team witnesses you consistently addressing issues in a fair and transparent manner, they will follow suit, and new employees will understand what’s expected from day one. This is why setting a clear standard and sticking to it is crucial—if you don’t, you risk perpetuating bad habits or creating an environment where employees are uncertain about what’s acceptable.
By leading with consistency and fairness, you’re setting the stage for a positive, productive team culture that benefits everyone.
Handling disagreements or violations within your team is not always easy, but it’s an essential part of building a successful and sustainable business. By setting expectations from the start, addressing issues promptly, and maintaining consistency, you’ll create a team culture built on respect, accountability, and trust. Your actions today will teach your employees how to handle concerns, set boundaries, and manage conflicts in the future. And when your team is aligned, productive, and engaged, the possibilities for growth and success are endless.
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