One subject that I see over and over on Twitter, in LinkedIn conversations, and on blogs is workplace bullying.  It is sad to me that this is an issue at all, let alone one that has become more prevalent than discriminatory harassment.  Although similar to harassment, bullying is typically unable to be placed into one category such as race or gender related harassment.  The economy and unemployment rate seems to have turned the workplace into more of a competitive environment where it is every man for himself and if an employee must push others around to come out on top, so be it.

Seeing this topic over and over has led me to wonder at how much this must cost a company.  I can’t imagine being able to actually calculate with any accuracy the amount of money wasted when bullying is present in a company – I don’t mean to try.  But I am in awe of what that number must be when you sit down and think about the effects.  Talk about a downward spiral.

Consider these factors when thinking about the cost to your organization:

  1. Distraction from tasks by the bully, the victim, and by witnesses.
  2. Poor performance by victims given inaccurate or incomplete information to do their job by the bully. This results in decreased motivation and low energy.
  3. Increased stress, which leads to poor health, which leads to absenteeism, which leads to insurance claims which can also lead to Worker’s Comp claims. 
  4. Increased insurance costs due to claims listed above.
  5. Turnover – both by the victim and by the witnesses.  (Witnesses quit two-thirds as often as victims.)
  6.  Inability to reach corporate goals due to lack of communication by the staff.  When bullying is taking place your team will not collaborate and problem solve so goals cannot be met.
  7. Legal costs
  8. Settlement fees for successful litigation by victims or wrongful termination litigation by bullies.
  9. Loss of revenue due to low engagement, a toxic corporate culture, and an inability to attract top talent.
  10. Waste of time.  Look for a future post on the ways bullying wastes time.

 

Do you have a policy in place to handle bullies in your organization?  Have you considered the dollars and cents that are lost when bullies are present?  Can you imagine what that total cost must be?