5 Costs & How to Address Them
The current job market is challenging, with high turnover rates and staff retention being a major concern for employers and HR managers. In some sectors workplace violence is a major contributing factor.
This issue is affecting all industries, but it is particularly evident in the service sector where higher rates of violence are documented. These high-risk organizations regularly deal with incidents that have been shown to increase staff turnover and company costs.
Outlined in this article are five typical costs that workplace violence create for an organization as well as some recommendations on how to combat this rising problem
What is workplace violence and what causes it?
Workplace violence and aggression and encompass psychosocial risks such as physical and verbal abuse in the workplace. Examples include:
- Hitting, kicking, pushing
- Throwing things
- Yelling
- Threatening and intimidation
A study done by ASRC found that 90% of employees have experienced aggression or workplace violence, due to many contributing factors. One particularly pertinent factor is stress, and this has increased dramatically in previous years in part due to the COVID-19 pandemic.
Stress is complex and can be explained as an imbalance between the demands on oneself and the perceived ability to handle those demands. In organizations worldwide, customers, clients and employees may react differently to these demands, leading to challenging situations.
For instance, during the height of the pandemic, many people opposed the restrictions placed upon them. This resulted in customers refusing to wear masks and therefore creating difficult circumstances for others. At times, these situations escalated and left employees dealing with workplace violence incidents beyond their capability.
In addition to stress, there are other threats that increase the likelihood of work-related violence which include:
- Handling cash, drugs, or valuables
- Working alone, in isolation, in the community or at night
- Providing services to distressed, angry or incarcerated people
- Carrying out enforcement activities
Staff retention, overall morale and productivity levels within an organization are concerns across all industries, and it is worthwhile for employers and HR managers to learn about how workplace violence may be exacerbating these issues.
The cost of workplace violence on an organization and its employees
1. Staff turnover and training costs
Staff turnover is a considerable issue worldwide with the pressure on employers and HR to quickly replace departing employees and keep their organizations running.
The financial cost of staff turnover continues to grow with the average cost of hiring an employee increasing to $23,000 per applicant. In addition to this financial cost is the rising cost on time with the average hiring period increasing from 33 days to 40 days.
Evidence strongly indicates that workplace violence leads to staff turnover. When employees deal with aggressive and violent acts regularly, they begin to resent and fear coming to work. This fear leads to avoidance strategies such as leaving a position.
In a time when staff turnover is already increasing, employers cannot afford to dismiss the negative impact of violence and the influence it has on employees seeking a career change.
2. Absenteeism and loss of productivity
The prolonged occurrence of workplace violence leads to an increased number of employees taking leave from work, and the remaining staff are left to address the shortfall.
The National Institute for the Prevention of Workplace Violence has identified that employee productivity decreases by up to 50% in the weeks following serious workplace violence incidents.
The continued absenteeism results in a heavier workload on the remaining staff, which reduces the efficiency of completed tasks and decreases the quality of work. Ultimately, this harms the organization and hinders its ability to fulfil its commitments.
To reduce the level of absenteeism and therefore increase productivity, organizations will benefit from addressing the impact of violence on their employees.
3. Decrease in morale
There is a decline in overall morale when employees feel unsafe in their workplace.
A decrease in morale affects all levels of an organization and can have a domino effect. One employee’s negative attitude toward an organization can influence the thinking of those around them, creating an unproductive work environment.
These disengaged and negative employees can be difficult for HR and managers to deal with and the impact they can have on an organization should not be overlooked.
Instead, organizations would benefit from implementing strategies that ensure safe working environments and therefore address the root cause of the morale decrease.
4. Costly security measures
Higher rates of violence increase the need for added security measures, including the administering of duress alarm systems, the hiring of new security teams and the installation of expensive security devices such as CCTV.
A study found that crime was reduced by 13% in areas with security cameras installed.
Increasing security measures can be a large investment to begin with but the result is fewer incidents overall and reduced severity of incidents when they do occur, therefore reducing company costs overall.
5. Reputation damage and customer impact
Unfortunately, a rise in incidents can increase negative publicity. Organizations may find that customers avoid their workplace to protect themselves.
Another point to consider is the impact closing the organization can have on customers. If an organization needs to shut down because of an incident, customers will turn elsewhere and may receive goods and services from competitors, making it more difficult for an organization to bounce back after severe incidents.
Workplace violence incidents can have a lasting impact on organizations. At Resolution Education we can teach you proven strategies that can address these issues. They have been outlined below.
Preventing and responding to Workplace Violence
The key to addressing workplace aggression is establishing preventative measures and adequate responses. For the most effective outcome, organizations would benefit from using a layered approach and implementing each of the following ideas.
Establish clear policies and procedures
Policies and procedures are there to protect employees and outline exactly how to approach certain situations. They create consistent expectations and boundaries across an organization, which is a crucial part of incident prevention.
Examples of effective policies include outlining what to do in an aggressive situation, how to approach remote work, strategies for dealing with phone aggression, and steps to take in a negative physical interaction.
Develop staff awareness
A key aspect of incident prevention is developing staff awareness of what causes a situation to escalate negatively and how to avoid it.
Establishing awareness means teaching employees about tell-tale signs of aggression and common causes. This includes recognizing environmental triggers, how body language and verbal cues indicate rising aggression, and how internal systems such as complacency can be a contributing factor.
Provide de-escalation training
De-escalation is a skill that can be taught and is a necessary preventative measure that can reduce the severity of incidents.
Workplace Violence and Aggression Training centered around de-escalation strategies involves learning techniques that lessen an aggressive situation, recognizing when and how to remove yourself, and learning when and how to use your voice effectively.
Seek guidance on protective measures
Protective measures can involve setting up systems such as duress alarms, extra security, and CCTV cameras, but can go as far as learning techniques and physical restraints should a situation require it.
Training around physical grabs, releases and restraints should be safely done by a professional. This type of training should not be overlooked as these techniques can positively impact an employee’s confidence and ability to keep themselves safe.
Debrief with staff after an incident occurs
Lastly, debriefing with staff after an incident is a step often disregarded but one that is crucial in preventing similar incidents from reoccurring.
Debriefing involves looking at what caused the incident, which policies and procedures worked, and which didn’t, what areas and/or measures could be improved upon, and what systems could be implemented for next time. These pivotal moments can provide insight into how to decrease the severity should it happen again.
Conclusion
The growing problem of workplace violence has many negative impacts on organizations, however, a layered approach that combines effective, proven strategies can have a positive result. Organizations can utilize professional training to minimize negative impacts and therefore ensure a safe workplace that holds on to its employees.
Resolution Education offers a range of customized training packages that address the concerns of workplace violence. These effective training packages equip employees with the knowledge, skills, and toolkit for dealing with violent and aggressive customers and members of the public.
Explore our training options including De-escalation courses, Conflict Resolution training, and Restrictive Practices training.
If your organization needs strategies to deal with aggression and improve the safety of your workplace, fill in the form below to begin the process.
At Resolution Education our professional OVA trainers look forward to hearing from you.
Frequently Asked Questions
How much does staff turnover cost due to workplace violence?
The average cost to hire a replacement employee reaches $23,000, plus extended hiring time of 40 days, as violence drives workers to leave high-risk roles in service sectors.
Why does workplace violence increase absenteeism rates?
Repeated exposure to aggression causes fear and resentment, leading staff to take more sick leave; productivity drops up to 50% in weeks after serious incidents, overloading remaining workers.
What hidden productivity losses stem from workplace violence?
Presenteeism occurs when fearful employees show up but underperform due to stress, while coworkers cover gaps from absenteeism, reducing overall task efficiency and work quality.
How does workplace violence raise legal and compensation expenses?
Organizations face workers’ compensation claims, legal fees from disputes, and potential lawsuits when violence incidents result in injuries, investigations or failure to protect staff.
Why invest in security measures after workplace violence incidents?
Added duress alarms, CCTV and security teams cut crime by 13% and reduce incident severity, offsetting initial costs through fewer events and lower overall violence-related expenses.
How can training reduce the financial impact of occupational violence?
Customized de-escalation and aggression management training equips staff with skills to prevent escalation, lowering turnover, absenteeism and security needs while building a safer workplace.