I don't know of any leader who enjoys playing mommy or daddy to tattle-telling employees. The goal should be to build capacity in employees to be effective in conflict resolution, but in the mean time, how do you address employee conflict?
Once you have become aware of conflict between employees, address it immediately. Don't allow the conflict to fester and taint the spirit of the rest of the team. Here are some steps for dealing with the conflict:
Employee conflict is frustrating because it prevents work from being done. That's why it must be addressed swiftly and effectively. Even good leaders experience conflict on their teams every once in a while, but what separates them from ineffective leaders is how they handle it!