New research shows rising workplace conflict in retail & hospitality — 5 key findings for employers

Workplace conflict is often viewed as an HR issue to be managed through formal procedures. New research from Acas, however, suggests that conflict is far more likely to end in resignation than resolution — particularly in retail and hospitality.   

Acas’ 2025 survey found that almost half of workers in hospitality (49%) and retail (50%) experienced workplace conflict in the last year — the highest of any sectors surveyed. The findings raise important questions about how conflict is identified and addressed in practice if it’s not to become terminal.

Here, employment solicitor Amber Ward explores what the research reveals and outlines how employers can respond early and effectively.

1. Conflict is common & often linked to performance management

The most common trigger for conflict was capability and performance, with conflict most frequently involving line managers rather than HR or senior leadership.

In retail and hospitality environments, there’s often a high degree of interaction with line managers who manage shifts and teams. Line manager roles are demanding — often requiring a balance of day‑to‑day operational demands alongside people management skills in fast‑paced settings. This means that performance, absence or conduct may not always be addressed as early or consistently as intended. Over time, this can increase the likelihood of misunderstandings or tensions emerging.

From an employment law perspective, these moments matter. Poorly handled performance or conduct discussions often sit in the background of later grievances, sickness absence or discrimination claims, even where the original issue wasn’t legally complex.

2. Most employees don’t raise grievances — they leave

One of the most striking findings for hospitality employers is how employees respond to conflict.

Formal internal processes remain relatively uncommon. A significant proportion of people take no action at all. Instead, many opt to leave.

In the hospitality sector, 28% of employees said that they left their job as a result of workplace conflict compared to 9% of workers generally. For hospitality employers, this has a direct commercial impact on recruitment costs, onboarding time, disruption to teams and loss of experience.

Conflict that appears ‘contained’ because no grievance has been raised may, in reality, be driving attrition beneath the surface.

3. The link between conflict, wellbeing & absence

More than half of those experiencing conflict reported stress, anxiety or depression, rising to 64% in hospitality.

This has important legal and operational implications. Stress‑related absence can quickly intersect with disability, reasonable adjustments and capability management. Left unmanaged, early disagreement can evolve into longer‑term absence or formal disputes that are harder — and more costly — to resolve.

Acas draws a clear link between conflict, mental health and both short‑ and long‑term absence. Early intervention is therefore not just good people management — it’s also a key risk‑management tool.

4. Informal resolution delivers the best outcomes

Despite the emphasis that many organisations place on formal policies, the research shows that informal discussions are the most common and effective route to resolution.

Conversations with a line manager — or directly with the individual involved — were far more likely to resolve conflict than formal processes. By contrast, grievances, disciplinary action and external escalation featured in a relatively small proportion of cases.

The message for retail and hospitality employers is that having the right conversations early is often more valuable than relying on formal procedures alone.

5. A positive insight for hospitality teams

Interestingly, reported conflict with colleagues (rather than line managers) was lower in hospitality than the national average. This may point to stronger team dynamics or workplace culture in customer‑facing environments.

Where teams function well, the key challenge is often not peer relationships but how issues are managed vertically. This again brings the focus back to line manager capability and confidence.

Four key priorities for retail & hospitality employers 

The Acas findings point to some clear priorities for employers in the sector:

1. Upskilling line managers to handle performance, behaviour and wellbeing conversations confidently.
2. Treating conflict as a retention issue, not just an HR or legal one.
3. Acting early before issues escalate into absence, grievances or resignations. 
4. Using formal processes proportionately as a backstop rather than a default.

Handled well, early intervention can significantly lower the risk of disputes escalating into formal legal issues.

The value of early action

While conflict in the workplace may be inevitable, unmanaged conflict has serious effects. The Acas research reflects a theme that we regularly see in practice: outcomes are often shaped at an early stage before issues escalate into formal grievances or legal disputes.

Employers who invest in line manager capability and take early advice place themselves in the strongest position to retain staff, protect wellbeing and manage legal risk effectively.

Talk to us

Our employment team supports organisations across the retail sector with line manager training, conflict management and resolving workplace disputes before they escalate.

If you’d like to strengthen your approach to early intervention, upskill your managers or discuss a specific concern, we’re here to help.

Talk to our team by calling 0333 004 4488, emailing hello@brabners.com or completing our contact form.