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Pick a recent example. Select an example that makes you look good. Find an example that showcases your other strengths. Perform mock interviews.
While you may have handled conflict great during a college internship, if you graduated 3 years ago this is not the best example. Employers want to know who you are now, so always pick a recent example.  Preferably, your example should be from a job you've held in the last 12 months. If you've been unemployed for awhile, do you have any non-work related examples? An example from volunteer work can also help showcase your experience. You want to show that you would be an asset to a company, so pick a story that makes you shine. Choose a situation where you produced amazing results and were successful in resolving a conflict.  Do not pick an example where you left a situation bitter or frustrated. Focus on positive experiences, in which a situation was successfully resolved. Results are also important to showcase. You may have smoothed over a disagreement between two co-workers, but maybe the only results were a decent 20 minute presentation. You want bigger results than that. For example, talk about the time you helped smooth out a misunderstanding between a client and employee, which resulted in a huge sale for your company. Never focus solely on teamwork in a team player question. You only have so much time in a job interview to speak to all of your strengths, so make sure to get in as much information as possible.  Think of what other strengths were involved in a team work experience you had. Say you worked with a co-worker on a sales pitch for a client. In addition to working successfully on a team, what other skills did this situation require? For example, you probably had to make a deadline, use great verbal communication skills, and demonstrate great interpersonal skills. Find ways to work in these skills as you outline your experience working on a team. Ask a friend or family member to help you practice for your interview by acting as the interviewer.  Give them the list of sample questions you predicted might be asked. Encourage them to add their own questions too, so you can get comfortable performing under pressure when you haven't crafted the perfect answer beforehand.  The more you practice and become familiar with possible questions and your answers, the easier it will be to stay calm under pressure. Ask your “interviewer” to challenge you with difficult questions and resist offering feedback until the practice is over.  For this exercise, they should consider you one of several strangers they have to meet with to fill the position.