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The costs of bullying in the workplace

The costs of bullying in the workplace

Workplace bullying is a widespread problem that affects organizations of all sizes, from Fortune 500 companies to small, family-owned businesses. It often results in severe physical, emotional, or professional damage. While it may sometimes appear subtle or even harmless, the consequences of workplace bullying are far-reaching and deeply harmful.

Workplace bullying has significant financial repercussions that extend well beyond the individual employee being targeted. The entire organization can suffer from its effects, leading to substantial costs that accumulate over time. Research shows that nearly 40% of workers experience bullying during their careers, and just one bully can cost a business up to $100,000 annually. These expenses arise from a variety of factors, including decreased productivity, high absenteeism, presenteeism, increased employee turnover, and potential legal fees or settlements.

Keep reading to discover a list of the costs of bullying in the workplace and practical strategies to prevent bullying in your organization.

Exploring the consequences of workplace bullying

The impact of workplace bullying is far-reaching, affecting both individuals and organizations. It has the power to disrupt everything from employee well-being to productivity to morale to retention rates. Bullying can cause significant damage, both financially and in terms of brand reputation. 

Consequences of workplace bullying include:

The psychological and emotional toll on employees

Workplace bullying can cause severe mental and emotional stress. People who are bullied often experience anxiety, depression, lack of motivation, and a decrease in self-esteem. 

According to the Workplace Bullying Institute (WBI), 40% of people bullied at work have adverse health problems as a result. The fear and distress bullying causes can create a hostile and toxic workplace environment that negatively affects morale throughout the company​.

Impact on employee retention and turnover

One of the most significant concerns with workplace bullying is its impact on employee retention. Many victims may feel compelled to leave their jobs to escape ongoing abuse and harassment. Research shows a strong connection between bullying and employee turnover intentions, which is critical to address because high turnover rates can lead to costly recruitment and training expenses for companies.

Reduced productivity and engagement

Victims and witnesses of abuse often struggle to stay engaged with their work responsibilities, leading to low productivity and poor job performance. Gallup research highlights a strong link between disengaged employees and increased costs. In fact, one report revealed that disengaged employees contribute to a staggering $8.9 trillion in lost productivity worldwide.

Legal and financial repercussions

Workplace bullying can lead to substantial legal and financial repercussions, with litigation often proving costly. On average, a trial can cost a company approximately $150,000, and settlements frequently reach 6 figures. In many cases, legal expenses can escalate well beyond these amounts. Additionally, workplace harassment and abuse claims often have additional costs related to legal fees, internal and third-party investigations, and mediation. 

Damage to company reputation and brand image

The damage bullying does go far beyond just the harm it causes victims. It can alter an entire company’s reputation forever. In the age of social media, workplace bullying news can spread quickly, and a viral story can irreparably harm a brand’s reputation, causing negative public perception and intense backlash. This can affect everything from employee recruitment to customer loyalty and relationships. Companies with damaged reputations may need to offer higher salaries to attract top talent, further increasing operational costs.

How to prevent the consequences of workplace bullying

Preventing workplace bullying is crucial to fostering a healthy, supportive, and productive work environment. By taking proactive steps that address bullying, you can improve employee well-being and protect yourself from the costs of increased disengagement, higher rates of turnover, and severe legal battles. 

Establishing, promoting, and enforcing clear anti-bullying and misconduct policies will help promote a culture of respect in your workplace. Offering support resources also allows you to mitigate the harmful effects of bullying. 

Try implementing some or all of the following strategies to ensure your employees feel valued, heard, and safe.

Establish clear anti-bullying policies and procedures

To prevent bullying, you must have clear, well-defined, consistently enforced anti-bullying policies. Strict guidelines should outline what constitutes workplace bullying and offer steps employees can take to report it properly. 

Foster an inclusive and respectful workplace culture

Establishing a culture of inclusion and respect is one of the most effective ways to prevent bullying. Employees who feel valued and respected are less likely to bully or be bullied. You can start by encouraging a collaborative workplace environment that prioritizes open, respectful communication. Team-building activities and DEI initiatives can further promote a supportive environment where employees feel empowered to stand up if they encounter toxic or harmful behaviors.

Provide training and awareness programs for employees

Education plays a crucial role in fostering a safe, healthy, and positive workplace culture. Comprehensive training programs can help employees recognize the signs of bullying and learn how to respond effectively. Regular workshops and seminars raise awareness and equip employees with practical tools to intervene or report incidents. 

Additionally, focused training on issues like discrimination, racial harassment, and abusive conduct deepens understanding and empowers employees to identify and address hostile behaviors in the workplace. This continuous education is critical to creating an environment where everyone feels safe and supported.

Encourage open communication and reporting mechanisms

Bullying policies can only work if employees feel comfortable reporting incidents without fear of retaliation. Offering channels for anonymous reporting helps ensure confidentiality, which should encourage people to come forward. Management will want to regularly check in with teams and individuals to address concerns before they can escalate into more dire situations.

Implement effective conflict resolution strategies

Leadership teams should receive training in mediation and conflict resolution to address workplace bullying effectively. Equipped with these skills, they can quickly and fairly resolve bullying-related issues. Early intervention is critical to preventing minor conflicts from escalating into more severe problems.

Offer mental health support and resources for employees

Providing mental health resources like counseling or therapy can be critical for employees who are healing from bullying. A company that prioritizes mental health inclusion in the workplace ensures that all employees feel valued and supported. 

For example, you might offer access to Employee Assistance Programs (EAPs) or partner with mental health platforms like Talkspace to offer online therapy for employees to help them recover from the emotional and psychological toll of bullying. Support is crucial if you want to create a caring and empathetic workplace culture.

Create a supportive environment with Talkspace

The organizations that truly prioritize employee mental health are the ones that successfully create environments where bullying isn’t likely to thrive. Partnering with Talkspace allows you to offer convenient online mental health support so your employees can access professional care when, where, and how they need it most. 

Request a demo today to learn more about how Talkspace can help your organization become a thriving, supportive, and bully-free workplace.

Sources:

  1. MyDisabilityJobs. 2024. “Workplace Bullying Statistics Research & Facts | Updated 2024.” MyDisabilityJobs.Com. January 9. https://mydischrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://workplacebullying.org/download/2017-wbi/?wpdmdl=2024&refresh=670daa6fa04441728948847abilityjobs.com/statistics/workplace-bullying/. October 12, 2024.
  2. MyDisabilityJobs. 2024a. “Costs of Bullying and Harassment in the Workplace | Update 2024.” MyDisabilityJobs.Com. January 9. https://workplacebullying.org/download/2017-wbi/?wpdmdl=2024&refresh=670daa6fa04441728948847. October 12, 2024. 
  3. Namie, Gary. 2017. “2017 Workplace Bullying Institute U.S. Workplace Bullying Survey.” https://workplacebullying.org/download/2017-wbi/?wpdmdl=2024&refresh=670daa6fa04441728948847. October 12, 2024.
  4. Malola, Pascal, Pascale Desrumaux, Eric Dose, and Christine Jeoffrion. 2024. “The Impact of Workplace Bullying on Turnover Intention and Psychological Distress: The Indirect Role of Support from Supervisors.” International Journal of Environmental Research and Public Health 21 (6): 751. doi:10.3390/ijerph21060751. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC11204373/. October 12, 2024.
  5. Pendell, By Ryan. 2023. “Employee Engagement Strategies: Fixing the World’s $8.8 Trillion Problem.” Gallup.Com, September 11. https://www.gallup.com/workplace/393497/world-trillion-workplace-problem.aspx. October 12, 2024.
  6. Gallup, Inc. 2024. “State of the Global Workplace Report - Gallup.” Gallup.Com. https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx. October 12, 2024.

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