Harassment costs companies dearly – 7/1/2023 – Market

Contrary to what many may imagine, the harm caused by moral harassment affects not only the individuals who suffer it, but also imposes high costs on companies and society.

To estimate the costs of bullying in the workplace, Roger Kline and Duncan Lewis used data from surveys of employees of the NHS (England’s public health system), official reports and previous studies. They conservatively estimated that harassment costs taxpayers £2.281 billion a year (£4.8 billion), just for what happens on the NHS.

Leah P. Hollis’ research on the rise of harassment at American universities also goes in the same direction. The study reveals that 62% of department managers had experienced or witnessed cases in the workplace in the 18 months prior to the study.

Moral harassment was related to less engagement at work and a greater intention to leave the job. The researchers estimated that its cost in American higher education was $11.9 billion (R$57 billion), adding all major centers, considering the costs of recruitment, training and the loss of productivity associated with employee turnover.

With the intention of reducing these cases, Law 14,457 was enacted, in force since March of this year, which brings important milestones for combating harassment in companies. The law acts to prevent companies from naturalizing harmful behavior and conduct, which generate individual and collective losses: for the victims, their families and for the company’s productivity.

According to the new framework, the following measures must be adopted by institutions:

1. Inclusion of rules of conduct regarding harassment in the company’s internal rules, with wide dissemination to employees

2. Establishment of procedures for receiving and following up complaints, for investigating the facts and applying administrative sanctions to those directly and indirectly responsible for the acts, guaranteeing the anonymity of the whistleblower

3. Carrying out training and guidance actions for employees at all hierarchical levels in the company.

The non-compliance of companies will result in penalties applied by the Ministry of Labor. The Superior Labor Court already has a booklet used as a reference for all actions and available on the internet.

The law was widely celebrated among advocates for a safer work environment, particularly by women. But are they the only ones celebrating?

Evidence shows that productivity will also benefit greatly from anti-harassment measures. The benefits of combating harassment are reduced absenteeism, unproductive presence, turnover, sick leave and increased company productivity. Evidence shows the economic importance of reducing incidence and not incurring the losses of having an unproductive environment.

Anyone who imagines that the fight against harassment only interferes with the worker’s quality of life is very wrong. We all lose, workers, families, companies and productivity. Allowing or colluding with this incidence is not only illegal, but also unwise from an economic point of view. Its costs go beyond huge indemnities, after all, it also impairs the quality of work and makes companies effectively lose money.

With the legislation, there is already a reference to awareness of what moral harassment is, examples of cases and general guidelines for victims in the prevention booklet of the Superior Labor Court. Not to follow the reference seems to be doubly wrong. In addition to merely complying with a law, it is essential that leaders and managers commit to a change in the company’s culture, without which they will be losing employees and money.