Corporate bullying

The hidden costs

Senior HR manager forumThe Leadership Consortium 30-31 October 2003

Today

• Overview of bullying• Health risks and implications – a practitioners

viewpoint• Quantifying the magnitude of the problem• Implicated management practices• Steps you can take to minimise the risk

Take the quiz – Is your company losing its best employees to bullies?Do any of your leaders• Disapprove of weakness in their employees?

Yes / No• Raise their voices when they get annoyed?

Yes / No• Spread malicious gossip?

Yes / No• Cause employees to dissolve into tears or walk away when

confronted by them? Yes / No

• Use sarcasm? Yes / No• Criticise junior colleagues in front of

clients/customers/peers?

Yes / No

Every ‘yes’ adds to the risk of accepting bullying in your company and losing your best employees

Paice & Firth-Cozens 2003

What is workplace bullying?

• An abuse of power• Victims have associated feelings of• Isolation• Destabilisation• Threats to professional status or personal standing

Field 2003

Bullying behaviourBullying behaviour

• Bullying behaviours experienced by a sample of white-collar employees from over 325 Australian companies

• Adapted from Health Works Corporate 2003

0%

20%

40%

60%

80%

100%

Intimidation Humiliation Ridicule Insults Offensivelanguage

Degradinglanguage

None

Bullying behaviours

Pro

po

rtio

n o

f s

urv

ey

ed

pa

rtic

ipa

nts

Bullying adversely affects health

• Exposure to bullying behaviours increase mental health problems

• Work-related stressful experiences contribute to depression• There is a high prevalence of mental health problems in

Australia– Depression– Anxiety– Sleep disturbance

Field 2003; Mikkelsen & Einarsen 2002; Tennant 2001

Victorian Workcover - mental health claims

0

500

1000

1500

2000

2500

3000

1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02

Year reported

To

tal

nu

mb

er

of

cla

ims r

ep

ort

ed

Minimise and manage workplace risk

• Your company’s leaders could be contributing to workplace risk liability

• As a HR manager, minimise and control your workplace exposure

• Be cognisant of bullying• Implement risk management strategies

Bullying costs your company

• Increased absenteeism• Premature retirement• Decreased customer or client satisfaction• Replacement costs – labour turnover• Grievance and litigation/compensation• Reduced employee productivity

Hoel et al 2001

Victorian Workcover - stress claim payments

0

2000

4000

6000

8000

10000

12000

14000

16000

1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02

Payment year

Ave

rage

pay

men

t ($

)

Victorian Workcover - time period of compensation for stress claims

0

2000

4000

6000

8000

10000

12000

14000

0 1-5days

6-10days

11-15days

16-20days

5-8w eeks

9-13w eeks

14-26w eeks

27-39w eeks

40-52w eeks

1-2years

2-3years

3-4years

>4years

Time period

To

tal

nu

mb

er o

f p

erso

ns

Forced ranking – competitive or counterproductive?

• A performance management system where employees are ranked rather than rated

• Schemes used vary– eg. totem pole approach, normal distribution

Worklab Consulting 2003

Avoid a forced ranking system

• May hinder innovation• Negative impact on teamwork• Competitive environment may increase stress levels• Can lead to bullying behaviours

Worklab Consulting 200

Enhance the leadership style of your company’s managers

• Develop and participate in self-awareness training for your company’s managers

• Organise an appraisal of your company’s leaders– Ensure that at least 10 people take part for each leader

• Attend and recommend a training program on workplace bullying

• Introduce or critically review your company policy on bullying/harassment

• Tackle overload and staff shortages in your workplace

Paice & Firth-Cozens 2003

Prevent workplace bullying – your legal responsibilities

Houghton 2003; Worksafe 2003

Create awareness

Identify risk factors

Develop a policy

Inform, instruct and train employees on anti-bullying

legislation

Control the risks

Provide clear reporting routes and dedicated support for victims

Provide support and remediation for bullies

Con

su

ltati

on

Mon

itor

& e

valu

ate

Next steps

• Conduct internal research– Develop and administer staff surveys

• determine employee satisfaction rates• assess bullying indicators such as reduced

employee productivity, absenteeism rates, turnover rates and premature retirement

– Develop and administer manager surveys and profiling• assess leadership style to identify managers

prone to bullying behaviour

Next steps

• Policy– Conduct a review of existing antibullying policy or

introduce new policy• Education/training

– Consider developing and conducting internal training for your staff and managers at all levels of the company

• Performance management– Consider developing and implementing progressive

appraisal and management systems

Further information

Rudy Pilotto, BSc(Hons), CPT

• Serious Consulting• (03) 9349 3700

Dr Frank Barbagallo, MBBS

• Adrenalin Strategics• (03) 9412 0555

Thank you

Q+A