Keeping a bully on staff is the equivalent of burning a big pile of money in the back of your building. But how much does it cost, exactly? The Workplace Bullying Institute (WBI) explains the hidden and not-so-hidden costs of allowing bullying in the workplace.
A simple formula for calculating costs
Turnover: Combined salaries of departed workers x 1.5
Opportunity lost: Lost revenue
Absenteeism: Number of missed hours x hourly rate
Presenteeism: Total salaries of checked out workers/2
Legal defense: Varies
Workers comp: Varies
For an employee paid $50,000 annually, the grand total could look like:
Opportunity lost: $30,000
Legal defense: $30,000
Workers comp: $2,000
You could pay that productive employee for three years instead of allowing the bullying to happen. Is pretending the bullying isn’t happening really the easy way out?
How to calculate the effect on your bottom line
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