Workplace Bullying Report: Economic Impact and Considerations Analysis

This report delves into the multifaceted issue of workplace bullying, examining its profound impact on both individuals and organizations. It highlights the economic costs associated with bullying, including reduced productivity, increased employee turnover, and the financial burdens of mental health issues and legal ramifications. The report explores various contributing factors, such as company culture and management practices, and analyzes the impact on the UK economy, citing statistics from ACAS and other sources. It underscores the importance of clear guidelines and proactive measures to prevent bullying, emphasizing the need for a supportive workplace environment. The report further categorizes the economic impact into personal and organizational costs, detailing how bullying affects individuals' income, healthcare expenses, and career prospects, while also affecting the companies' productivity and overall financial health.

WORKPLACE
BULLYING
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
With the inclusion of diverse culture and with the impact of globalisation, our society has
faced different aspects of bullying whether it is in workplace, school, colleges etc., and according
to the current situation it is has come up as a matter of discussion. Workplace Bullying, can
generally be verbal or physical but the fact is it puts a huge impact on the lives of the person who
is actually facing it because the humiliation can lead to mental health issues (Hoel, Cooper and
Einarsen, 2020). Therefore, this report will provide with an insight of Workplace bullying and
how it has an impact on the economic cost whether for the company or in relation to the
individual who is the victim of the same. Moreover, what all factors that needs to be considered
workplace bullying is also mentioned in this report.
MAIN BODY
In terms of people, considering their behaviour, if there is a high anxiety situation that their
performance typically gets down and the productivity level starts to decreases (White, 2018).
Workplace bullying has relatively increased and its impact can be seen in the turnovers because a
report released by “noworkplacebullying.com” states that approximately 30% of the workers
who are bullied and faces humiliation resign from their respective jobs. Along with this, other
20% of the employees also leaves their job who witnessed bullying. Therefore, it can be said that
nearby 50% of the workforce can be affected by workplace bullying. According to the article
published in Financial Times, bullying and harassment included a cost of around £2.3bn a year
and the reason being is the absence of employees, resigning from the job, decreased level of
productivity because of the mental health issues, compensation and many more (Victims of
workplace bullying are still let down by poor management, 2019). According to the same article,
the professor (Robert Sutton) of the Stanford University has also mentioned an instance of a
sales person who regularly insulted, bullied his co-workers was charged with $160,000 in order
to quantify the bad behaviour towards his colleagues. But the consequences were bad as there
was a decrease in the productivity level, suddenly staff turnover increased and reputation of the
company was in danger. Sometimes in most of the cases of workplace bullying the organisation
itself doesn’t show any kind of support and try avoiding the situations.
Workplace bullying is an aggressive behaviour and it is done regularly over a period of time
According to the article published the estimated cost that which is faced by the economy due to
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bullying is around £239 million each year and this is close to the work of 1.7 million days
(Research Highlights the economic cost of workplace bullying, 2020.). Moreover, both public as
well as private sectors are affected by workplace bullying. While talking more about workplace
bullying in most of the instances “fear is the biggest factor” because people believe that if
something is going to happen to them and because of this they undergo a lot stress, anxiety,
suicidal thoughts etc., therefore, for the people who are going through this needs a lot of courage
to speak about the inappropriate behaviour they are facing at workplace. But as per the recent
scenario of COVID-19 the rate of cost of workplace bullying has relatively decreased due to the
work-from-home practice.
The economic cost of workplace bullying can be determined under two categories one is
personal and the other one which is faced by the organisation. Former includes loss of income or
earning: the worker not willing to go to the workplace and besides this, takes sickness absence
pay. As a result, company make a reduction in the salary and moreover, employee miss out the
bonus experiences. There can be situation where the individual takes voluntary retirement
without giving a prior notice to the organisation and might pay a penalty. Human cost: this
includes the compensation asked by the victim. Additional cost: in this all the cost related to
medical treatments, consultations, hospital charges are included. However, most of the times it
depends upon the circumstances of the individual (Giga, Hoel and Lewis, 2008). Later on, the
cost of bullying on organisation can be based on many factors some of the important factor are
employee’s turnover, reduced performance and productivity, bill payments of health treatments
etc.,
Workplace Bullying has considered to be the most powerful element that can out a negative
impact on the psychological health of an individual. Workplace bullying can be linked with the
productivity loss of the because around 46.5% of the overall productivity loss including both
absenteeism and presenteeism can be seen (Fattori and et. al., 2015). In the year 2004 where the
percentage of workplace bullying was around 8 percent suddenly has an increase of 3 percent
and raise to 11 percent. Although, this was a steady growth but from the year 2010 the cases of
Workplace Bullying, is increasingly growing and moreover, as a consequence economy of
United Kingdom is being hampered. ACAS states that because of bullying the economy of
United Kingdom is cost approximately £18 billion each year (Does the UK have a workplace
bullying problem, 2020). However, the potential business implication is raising in the sickness
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absence and decrease in the productivity level. Moreover, in return it increases the workload on
the employees who are existing and working within the company.
CONCLUSION
From the above report it has been concluded that, with the increase in the cases of workplace
bullying and seeing its impact on the person’s physical and mental health it has become crucial
for companies to look at the situation. Moreover, proper and clear guidelines should be provided
so that situations like workplace bullying can be avoided. The main reason of considering the
same is because it put a negative impact on the economic cost of the individual and company and
consequently on the country’s economy. Bullying is not a thing which happens accidently but it
is a deliberate action which is done with a systematic planning.
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REFERENCES
Books and Journals
Giga, S. I., Hoel, H. and Lewis, D., 2008. The costs of workplace bullying. University of
Manchester Institute of Science and Technology, 8.
Fattori, A. and et. al., 2015. Estimating the impact of workplace bullying: humanistic and
economic burden among workers with chronic medical conditions. BioMed research
international, 2015.
Hoel, H., Cooper, C. L. and Einarsen, S. V., 2020. Organisational effects of workplace
bullying. Bullying and Harassment in the Workplace: Theory, Research and Practice, p.209.
White, S., 2018. An introduction to the psychodynamics of workplace bullying.
Routledge.
ONLINE
Victims of workplace bullying are still let down by poor management. 2019. [Online].
Available Through: <https://www.ft.com/content/9ea11222-5a14-11e9-9dde-7aedca0a081a>.
Research Highlights the economic cost of workplace bullying. 2020. [Online]. Available
Through: <https://phys.org/news/2020-05-highlights-economic-workplace-bullying.html>.
Workplace Bullying: ‘Fear is the biggest factor’. 2020. [Online]. Available Through:
<https://www.bbc.com/news/business-51182651>.
The Cost of Workplace Bullying. 2015. [Online]. Available Through:
<https://www.managementtoday.co.uk/cost-workplace-bullying/article/1372942>.
Does the UK have a workplace bullying problem? 2020. [Online]. Available Through:
<https://www.agencycentral.co.uk/articles/2016-05/uk-workplace-bullying-problem.htm>.
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