Workplace Bullying – A Cost to Your Organization

March 28th, 2010

Remember the playground bully? The kid whose purpose was to torment, threat, and (at times) physically assault others? Well, that bully grew-up and became your co-worker. If not addressed, bullies can cost an organization over $750,000 annually, according to Allison West, Esq., SPHR.

While there are no laws against bullying, there are claims of unlawful conduct that protect employees from behaviors that may be the result of bullying such as: Discrimination, retaliation, invasion of privacy, emotional stress and defamation of character. In April 2008, the Indiana Supreme Court upheld a verdict of $325,000 against workplace bullying. The plaintiff claimed assault, intentional infliction of emotional distress, and tortious interference with employment. Researchers have found that workplace bullying is more harmful than sexual harassment. As published in the American Psychological Association, twenty five percent of targets (people being bullied) and twenty percent of witnesses leave their jobs, because of workplace bullies.

The Financial Impact of Workplace Bullying

The financial loss to an organization starts before an employee (who was bullied) resigns. Leading up to the resignation, the organization’s day-to-day operations will suffer and negatively impact the bottom-line due to an increase in absenteeism, low morale, decline in performance/productivity, time spent by management to investigate, organization’s PR, health care cost and legal fees.

One may wonder, if bullies are so costly, why are they in the workforce? According to West, the number one reason that bullies are in a workplace is because the employer lets them get away with bullying. By not directly addressing their behavior and ensuring that it changes, a bully will continue to create an uncomfortable environment for others. Characteristics of a bully may include:

  • Belittling opinions
  • Aggressive voicemails/phone calls
  • Ignoring /interrupting others
  • Rolling eyes/threatening posture
  • Humiliating/intimidating others

Here Are Ways to Create an Environment Free from Bullies:

  1. Institute Organizational Core Values – Ensure that every member of the organization follows them.
  2. Create a Policy against bullying that includes an anti-retaliation clause.
  3. Investigate all reports of bullying.
  4. Don’t Ignore Claims
  5. Train Your Staff- Make workplace bullying a part of your Sexual Harassment training and train on Respect in the Workplace and Conflict Resolution
  6. Reward deliberate acts of kindness
  7. Conduct Exit Interviews- Find out why employees are leaving
  8. Track Turnover Rate by department and manager

If you have been a target of bullying, or are aware of aggressive employee behavior, please contact a Human Resources Consulting firm for further guidance.

Source: “The Bully and the Bottom- Line” Workshop Allison West, Esq., SPHR at the HR Star Conference, 2010

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