The Hidden Economic Cost of Bullying in the Workplace

Bullying and passive-aggressive behaviour in the workplace are often viewed as personal or interpersonal issues. 
The term ‘personality clash’ can enter the conversation, ultimately masking an unwillingness to address workplace bullying.
This reluctance to tackle challenging behaviours may have many causes, but the impacts of victimisation and the failure to effectively deal with it can have ramifications far beyond individual distress.

Toxic behaviours in the workplace are proven to have a profound economic toll, undermining productivity, stifling innovation, and perpetuating outdated management styles. They also reflect broader societal attitudes that hinder progress and inclusivity.

Sadly, recent times have witnessed a rebirth of the populist politician who, in understanding the power of negative emotion, deploy divisive tactics and dog whistle politics in enabling misogyny, homophobia, sexism and the targeting of minorities in attempts to bolster their own narcissistic aims. Names like Trump, Putin and more locally, Seymour and Peters exemplify how bullying attitudes can ripple through society with significant societal consequences.

The Economic Impact of Workplace Toxicity

Workplace bullying and passive-aggressive behaviour create a culture of fear and mistrust with team members subjected to these behaviours often experiencing severe stress. This can lead to decreased productivity, increased absenteeism and higher turnover rates, as valuable employees leave to escape the negativity.
According to the Workplace Bullying Institute, bullied employees spend a substantial part of their workday managing the emotional fallout, drastically reducing their efficiency and creativity.

For example, consider the tech company where product innovation is mission critical. If team members are afraid to share ideas or challenge the status quo through fear of retribution or passive-aggressive undermining, the company will miss out on passion driven research and development.
Oppressive environments not only stifle individual potential but limit an organisation’s ability to adapt and grow. The economic damage is compounded by the loss of diverse perspectives, which are essential for creative problem-solving and innovation.

The Cost of Excluding Diverse Viewpoints

An inability to embrace community and diverse viewpoints can further entrench these problems. Diverse teams bring a wealth of perspectives that drive innovation and improve decision-making. However, in environments where bullying or passive-aggressive behaviour is prevalent, these voices are often silenced. Employees from marginalized groups in particular, may feel unsafe or unwelcome, leading to a homogenized workplace culture that lacks the richness of diverse thought.

Take the example of a multinational corporation that prides itself on diversity but allows a manager with a dictatorial style to thrive. This manager might intimidate employees into conformity, discouraging dissent and innovative ideas. Over time, the company’s products and services may become stagnant, failing to meet the evolving needs of a diverse customer base. The economic consequences include lost market share and reduced profitability, illustrating how the inability to harness diverse viewpoints can directly impact the bottom line.

Dictatorial Management and Societal Parallels

Dictatorial, old-school management styles exacerbate these issues. Leaders who operate with a top-down, authoritarian approach often foster environments where bullying behaviours flourish.
These managers may believe that strict control and fear are necessary for productivity, ignoring endless research that consistently shows such environments are detrimental to long-term success. In these cases, employees become disengaged, creativity is stifled, and the organisation struggles to retain talent.

In the political realm, Winston Peters’ leadership of New Zealand First provides a stark societal parallel. Peters, a societal bully, advocates for any view that will provide Peters with headlines. His aim being not any form of societal improvement, rather to improve his own position and standing. His rhetoric perpetuates division and exclusion, reflecting an old-school mentality that has no place in a modern, inclusive society.
This kind of leadership can have severe economic consequences, as policies and attitudes that marginalize large segments of the population stifle overall economic growth and social cohesion.

Celebrating Diversity and Building Community

The antidote to the economic damage caused by bullying and passive-aggressive behaviour lies in celebrating diversity and fostering a sense of community. Organizations that prioritise inclusive cultures, where employees feels valued and heard are more likely to thrive. These environments encourage the sharing of diverse perspectives, driving innovation and adaptability.

For example, Google and Microsoft have invested heavily in diversity and inclusion initiatives, recognising that a diverse workforce is key to their continued success. Google and Microsoft have understood that celebrating differences and fostering an inclusive community leads to greater creativity, employee satisfaction, and, ultimately, better financial performance.

On a societal level, rejecting divisive rhetoric and embracing inclusivity can lead to stronger, more cohesive communities. By moving away from the outdated, exclusionary attitudes exemplified by populist figures such as Peters, we can build a society that values and celebrates differences. This shift not only promotes social justice but also enhances economic prosperity, as diverse and inclusive communities are better positioned to innovate and grow.

The economic and social costs of bullying and passive-aggressive behaviour are too significant to ignore. By tackling those brave conversations and through fostering inclusive environments and celebrating diversity, we can mitigate these costs and create a more vibrant, prosperous future for all.

Let’s move toward a better future together.

Thanks for reading.

Slainte,
Gordy