The majority of costs to a company are not obvious. The hidden and indirect costs of allowing disruptive behaviors in the workplace are very high. They include the following:
Anyone who has experienced challenging behaviors at work can tell you how it affects their ability to produce. As a rule of thumb, a 40-hour per week position averages 30 hours per week of direct service to the company after factoring in:
If a person earning $50,000/year loses one hour of productivity per day, the annual cost to the company in lost wages and benefits is over $9,000.
Oppressive work conditions can increase the instances of both sick leave and FMLA. A recent Finnish study showed that these conditions can increase sickness by over 26% (Kivimakia, M., Elovainiob, M., Vahterac, J. Workplace bullying and sickness absence in hospital staff. Occup. Environ. Med . 2000;57:656-660 doi:10.1136/oem.57.10.656 http://oem.bmj.com/content/57/10/656.full Accessed January 19, 2012). This is easy to understand because these conditions:
Over 20 years ago the National Institute of Occupational Safety Health (NIOSH) measured the cost of FMLA due to stress among the workforce at $19 billion per year (Sauter, S.L., Murphy, L.R., Hurrell, J. Prevention of work-related psychological disorders: A national strategy proposed by the National Institute for Occupational Safety and Health (NIOSH). American Psychologist 1990;45(10)1146-1158).
As noted earlier in this lesson, the cost of replacing and training new hires at lower levels runs from 30% to 100% of the employee's annual salary, and can be up to 300% of the annual salary, depending on the position. Additional costs of attrition include:
The indirect costs for a $60,000 per year employee are estimated to average a little over $100,000.
Sour people produce sour customers. As consumers, we have all had experiences with sour people. Some of these experiences may include:
This sour mood affects the customers and discourages them from purchasing products and returning to the store. The behavior of employees directly impacts sales and customer base.