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Bullying in the workplace is too costly to ignore

Laura Mitchell, Associate, Clarion Solicitors LLP

New research conducted by the Trades Union Congress has revealed that one in seven people have been bullied at work, with higher paid staff more likely to suffer.


For many employers, identifying and managing incidents of bullying in the workplace is fraught with difficulties.

What is bullying?

The concept of bullying does not have a legal definition as such, and is often used to describe a range of behaviours from ignoring/excluding someone to ridiculing or even threatening an individual. While most people will agree on what might constitute an extreme case of bullying, there are a number of ‘grey areas’ which can cause problems in practice. 

Constant criticism of a staff member could be deemed bullying by one person but ‘firm management’ by another and equally, jokes at an employee’s expense could be deemed to be bullying behaviour by one employee but simply ‘office banter’ by another. All this leaves employer’s confused about what action, if any, should be taken. The victims, on the other hand, are left feeling that others will consider them weak or not up to the job if they speak up about the way they are treated, or in the latter example, as not having a sense of humour. However, employees who are subjected to bullying do have some legal protection available and employers should take note.

What are the risks to employers?

While it is not possible to make a direct complaint of bullying to the Employment Tribunal, employees are able to bring complaints under law covering discrimination and harassment. In order to bring a successful discrimination claim, employees need to be able to show that they have been mistreated unlawfully, namely on the grounds of their sex or race, disability, sexual orientation, religion, belief or age.

Ignorance of the behaviour itself will be no defence, because the employer itself can be vicariously liable for the conduct of its employees if it was done in the course of the employee’s employment. There is no statutory cap for discrimination awards, which could be in top of any award for unfair dismissal that the employee may have.

Duty of care

Employer’s have a ‘duty of care’ towards their employees. This means that if the mutual trust and confidence that is deemed to exist between every employer and his employee, is broken as a result of the bullying, to the extent that it is considered a fundamental breach of that contract, then the employee may resign and be able to claim successfully that the resignation amounted to a ‘constructive dismissal’. Compensatory awards for unfair dismissal claims are currently capped at £60,600, albeit the size of such awards depends on a number of factors.

Thus, the potential cost to an employer of failing to address bullying in the workplace can be crippling. As well as the cost of any compensation awarded by the tribunal, a recent study revealed that win or lose, employers spend an average of 15 days in management time dealing with each tribunal claim. When you consider that statistics show that each year as many as 18.9 million working days are lost to bullying and up to half of all stress-related illnesses are a direct result of bullying, employers really cannot afford to let bullying go unaddressed.

What can employers do to protect themselves?

It is accepted that Big Brother is not always watching, and employers cannot see, hear and control everything that happens in the workplace, but there are simple procedures that can help protect against what can be costly claims.

• Keep an eye out for possible signs of bullying and harassment.

Signs may include:

- Absenteeism – if this is more frequent or for longer periods than usual.

- High staff turnover – particularly if it occurs in a particular section or where staff work for a particular manager.

- Stress symptoms – including fatigue, anxiety, depression.

- A change in the individual’s behaviour or performance at work.

• Implement a bullying and harassment policy –  implementing a formal policy will ensure that all employees are aware of the standards of behaviour that are expected of them.

• Ensure that the policy is linked to the company’s disciplinary and grievance procedures.

• Advertise the availability of the policy to all staff, including during any induction process.

• Make sure that all of the management team are seen to be fully committed to the policy.

• Ensure that those who are responsible for managing staff have sufficient training on their responsibilities.

• Deal with any complaints of bullying from employees promptly and fairly.

• Keep note of any complaints so that you can detect any patterns of inappropriate behaviour.

• Review the policy from time to time to ensure that it is working properly.

With the risk of tribunal claims and the associated costs of sick pay, staff turnover and lost production, turning a blind eye to bullying can be a very expensive mistake to make.

Published Tuesday, 14 October 2008 by Laura Mitchell



Comments

 

Jeff Goddard said:

Great article and I agree everyone should proactively look out for the signs.  There are a number of psychometric and personality tests that can help identify those proned to bullying just as easy as it is to find out those prone to cheating, break company rules and regulations, insubordination, sabotage, malingering and more.  

Whilst bullying can be triggered by an individual it could be a toxic organization which is causing these behaviours.  Whilst a conducive working environment gives pleasurable experiences to his/her employees and helps them to perform well, a toxic working environment gives painful experiences and deactualizes the employees’ behaviour.  A toxic organization reinforces and develops negative traits.  For example, a responsible and sensible employee can change into an irrational and irresponsible employee good at survival skills.

Factors that can contribute to a toxic environment are

1) opaque management resulting in unclear vision and mission, goals, and objectives, badly defined systems, policies, regulations, rules, roles that are ambiguous, principles of management being violated, resources being idle and inefficiently used, disruption of unity of command, and people getting away cheating and not doing work.

2) Bosses who plays favoritism. This may even be in a broad form, e.g. having a preference for the line over the staff functions or vice versa, bosses not giving recognition for performance, claiming credit for subordinate’s achievement, censors the good performance of the employee to the higher management, breaks employee’s self-esteem, fails to give clear instructions and directions, withholds vital information from the employee, which information is vital for the efficient performance of the job, blames employee if things go wrong, says one thing and does another - i.e. there is no congruency between what is said and what is done, is not decisive - subsequently employee does not have a sense of direction, plays “God” with the performance appraisal - they are subjective, and delegates responsibility without the authority to act - curtailing the employee’s self-esteem.

3) Company Policies such as Win-lose policies, centralization of power, creating privileged groups in the organization, closed door policy, poor fringe benefits, and too much red tape.

4) Working Conditions such as poor working conditions, unsafe working conditions, dirty work environment, insufficient resources, old technology, and old machinery

5) Interpersonal relationships such as unhealthy politicking, lack of cooperation among workers, back stabbing, empire building, rumor mongering, alienation, mistrust, sabotage

6) Pay below the market rate

A toxic organization is a breeding ground for problem employees. The impact of a toxic company can be envisaged in the vicious cycle below:

An unhealthy organization creates a toxic environment. The toxic environment gives psychological pains to the employees. Psychological pains deactualize their personality changing them for the worse. The good employees will deactualize into problematic ones. Problematic employees are insensible and irresponsible. They will cheat and sabotage the organization at the slightest opportunity. Their negative manipulative traits are developed in the process, giving them the skills to play a survival game. The marginal employees will become worse and as a result, shirkers, deadwoods and laggards are created. Dissatisfied and frustrated with the organization each time they experience the psychological pain from a significant other they will adopt a very negative attitude towards work. Productivity and quality plunge. Cost of operation escalates. Complaints are badly entertained. Customers are frustrated with its service and products. Consequently the organization loses his/her customers to the competitors. Eventually, the organization suffers from recurring loses. Downsizing takes place and in the process employees are retrenched. The better employees would look for greener pasture while the problematic ones behave like chameleon to survive within their rights embodied in the labour laws. Cash flow problems surface and the organization is forced to cut down further cost adversely affecting the remuneration package and fringe benefits. The war between the union and the management begins causing greater damage to the organization and eventually kill it.

In view of the survival and growth of the organization, it is imperative for the management to continually make a concerted effort to remove the factors that contribute to the toxicities of the working environment to improve her health. A healthy company provides a conducive environment and its impact is envisaged below:

Healthy organizations create a conducive working environment. A conducive environment breeds happy, motivated, satisfied and committed employees. Good employees will become outstanding in their performance as their self actualizing and positive traits are reinforced. Marginal and problem employees will change for the better as they experience pleasures in the working environment. The process of self actualizing for this group will be on going. Productivity and quality of products and services would be greatly enhanced. Operation costs dip and resulted having a competitive edge with their competitors. Customer base expands as the organization penetrates into the competitors’ market. Profit escalates. The demand for products and services of the organization will soar. Company expands regionally and globally. More employees are required to meet the demands of the customers. The hiring of more new employees offers the outstanding employees good chances for upward mobility. The win-win policies would also improve the remuneration package in terms of better fringe benefits, bonus and facilities. The better reward system reinforces the self-actualizing and positive traits of the employees as they continue to change for the better in terms of their competencies and attitude. Resources will be efficiently used to achieve the bottom lines. Wastages, rejects and accidents would be minimized, productivity and quality shoot up and the cycle continues in a recurring manner.

Regards

Jeff Goddard

passing on a few words from my business partner Bernard Tan

October 16, 2008 1:31 PM
 

Health & wellbeing said:

How can organisations help to stamp out bullying in the workplace? What are the warning signs of bullying

October 21, 2008 1:51 PM
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