The Staggering Cost of Workplace Bullying

Bullying is a growing issue in the workplace. Bullying can take many forms and cause physical and emotional damage to employees. It can also have significant financial repercussions for organisations. Some examples of workplace bullying include mistreatment by other employees, targeted jokes or mocking, unrealistic expectations by employers, employees talking negatively of colleagues and cyber-bullying. Unfortunately, nearly 23% of UK workers have been bullied at work, according to research by finance company SME Loans.

This article outlines the costs of workplace bullying and discusses how organisations can mitigate some of the risks.

Impact of Workplace Bullying on Organisations

The financial damage resulting from workplace bullying can be insurmountable. Repercussions may include employee counselling, legal costs and penalties associated with employment tribunal claims. There are several other ways workplace bullying can affect an organisation:

• Decreased Productivity – Bullying directly affects a victim’s confidence and is likely to decrease their productivity at work. Victims may also experience high anxiety, which can be distracting and debilitating. Reduced productivity is bad for business operations and can cause organisations to discipline poorly performing employees, take away responsibilities or even terminate them. Should employers not realise that employees are being bullied, they don’t have the chance to offer counselling or other assistance, and talented workers may continue to underperform or leave the organisation altogether.
• Increased absenteeism – A bullied employee may go to great lengths to avoid high-stress situations at work. Calling in sick or using large amounts of paid time off at once are common tactics to avoid bullies. Moreover, other employees may have to work harder to fill in for absent employees, possibly resulting in overtime, complaints or even more bullying behaviour.
• High employee turnover – Each time an employee leaves the workplace, employers may have to recruit, hire and train their replacement. According to the chartered institute of personnel and development, the average cost of filling a vacancy is £6,125, rising to £19,000 for a management role. Additionally, workplace bullying may cause a decline in morale for employees who are not victims of bullying. These employees may be less likely to interact with others for fear of being bullied, and this could create a hostile or uncomfortable work environment. Overall, affected workplaces may experience increased turnover rates as employees suffer the effects of unhappy work environments.
• Reputational damage – Even if an employee doesn’t report workplace bullying to their employer they may be telling family and friends about the behaviours occurring in the workplace. This information may spread and affect an organisations public image, which could negatively impact sales of products and services. Additionally a negative reputation may deter talented candidates from applying for job positions, affecting recruitment efforts.

Mitigating Workplace Bullying Risks

Mitigating workplace bullying risks is critical for employers to protect the organisation and provide a safe workplace for employees. Employers should scrutinise ways to mitigate workplace bullying, including the following:

• Raise awareness. Consider promoting an anti-0bullying campaign to raise general awareness of this issue through company wide newsletters or “lunch and learn” seminars. In doing so, employees may be more likely to recognise and report bullying behaviour.
• Determine the prevalence of bullying. Conduct anonymous staff surveys to capture the direct employee experience to identify the extent of the problem. Utilise this valuable insight to implement targeted measures to combat any issues raised.
• Lead by example. Ensure all managers and safety representatives know how to respond positively to employee concerns. Furthermore, when appointing new managers, consider candidates with strong people management skills who know hot to be fair and constructive. Reinforce such character traits with regular bullying and harassment training.
• Implement a zero-tolerance policy. Enforce a robust and well communicated anti-bullying policy that clearly defines bullying behaviour, the protocol for raising a complaint and the potential consequences of breaching the policy.
• Create procedures and training. Make sure there are clear procedures for reporting bullying in the workplace. All employees and employers should know how to file a complaint and what procedures to follow. They should also receive regular training for these processes.
• Build an inclusive environment. A workplace climate of acceptance and inclusion must be established to help prevent bullying. Workplace relationships should be built on collaboration, teamwork, and open interactions with peers and managers.

Conclusion

The impact of workplace bullying stretches beyond employee impact and can impact organisations’ operations and finances. As such, it’s vital that employers take precautionary steps to help mitigate the risks of workplace bullying.

Contact us today for further guidance and additional risk management tips.