Incivility in the workplace is more than just a minor interpersonal issue; it is a costly epidemic that directly threatens a company’s bottom line. When rudeness, bullying, and disrespect are left unchecked, the organizational damage spreads quickly.
Here is a breakdown of how incivility negatively impacts businesses and drives up hidden operational costs:
1. High Employee Turnover
Fact is, incivility in the workplace is a top reason for employee resignation. It has been reported that 1 in 8 targets of incivility leave their jobs to escape the stressful situation. Even individuals who enjoy their company’s compensation and are working a job they dreamed about will feel compelled to find another job when harassed, bullied, and disrespected by their co-workers or leaders regularly.
A high attrition rate is a costly situation for management. Not only will companies have to incur the extra expense of recruiting, screening, and training replacements, but the investment of having trained the staff members who leave never gets recouped.
2. Poor Company Productivity
Even if employee turnover rates remain stable, incivility creates roadblocks to the maximization of company resources, including manpower. Rudeness from co-workers creates stress in the workplace, which makes it difficult for employees to concentrate.
3. Severe Psychological Effects
Stress at the workplace due to incivility can easily spill over to an employee’s personal life. A study by the International Labour Organization (ILO) in 2022 revealed that 17.9 percent of employed people have experienced psychological violence and harassment, causing a severe disruption of their working lives.
More alarmingly, incivility can create a chain reaction that ultimately leads to heavy company losses. Consider the following findings from a landmark 2005 study on incivility by Pearson and Porath:
- Lost Time: Half of the targets who believe someone at work treated them disrespectfully will lose work time worrying about future interactions with the instigator.
- Job Hunting: Half will contemplate changing jobs to avoid a recurrence.
- Reduced Effort: One-fourth of research respondents who feel they have been treated uncivilly will intentionally cut back their work efforts.
- Sabotage: A few will steal from their instigators or their organizations, or even sabotage equipment.
- Reputational Damage: Most will tell friends, family, and colleagues about how badly they have been treated.
- Exit: In the worst-case scenarios, targets of incivility will simply exit the company.
4. Skyrocketing Health Costs
Health-related costs due to workplace stress mean financial losses for companies, and incivility in the workplace is a significant driver of this stress. The financial liability of a company for just one employee who develops heart problems and/or anxiety disorders due to workplace stress can run into thousands of dollars, depending on the gravity of the health issue.
5. Low Customer Retention
Incivility in the workplace does not occur in a vacuum. Because employees do not just interact with one another—they also interact with customers and clients—internal rudeness quickly leaks outward.
The importance of quality customer care in any business cannot be overemphasized. It adds to the company brand and ensures that customers feel engaged and eager to come back for repeat business. In today’s age, when a consumer has many options to choose from, practicing basic civility may serve as a business’ primary competitive advantage.
6. Expensive Lawsuits and Settlements
Workplace incivility can result in critical incidents that progress into bitter court cases. Persons victimized on the jobsite are highly encouraged today to file lawsuits in defense of their rights. When a company is proven to be in the wrong, the resulting pay-off in terms of damages can be incredibly high.
Even if worker disputes do not appear in front of a judge, internal mediation still drains resources. A Time Magazine analysis of Fortune 1000 companies found that the average executive spends approximately 13 percent of their working time managing and mediating employee disputes. This is leadership capacity that could otherwise be directed towards growth, strategy, and performance.
7. Decline in Company Values and Culture
Studies reveal that aggression begets aggression. Even low-intensity acts of incivility can spiral into serious problems when left unaddressed. Mild interpersonal conflicts can easily progress to actual shouting matches that disrupt daily operations. Over time, the repeated protection of instigators by management erodes the company culture, communicating the dangerous message that incivility is not just tolerated, but is considered a way to become “part of the team”.
Elevate Your Workplace Culture
For more ways to practice and develop emotional intelligence to combat incivility, get your copy of the book Better Managers, Better Workplace by Dr. Jamie Pajoel by CLICKING HERE.
