Workplace Violence Costs:  Hidden and Actual

The costs and consequences of workplace violence, albeit difficult to quantify precisely, are real. Compensation costs, loss of productivity and personal tragedy are just a few of the hidden costs.

The yearly cost of violence in the workplace in the United States amounts to $35.4 billion. Worker absenteeism in the U.S. due to exposure to violence is 30 to 40 per cent higher than in the European Union. A recent ILO report estimates the combined cost of workplace stress and violence at 0.5 to 3.5 per cent of national GDP per year. As the costs have been quantified, there has been recognition of workplace violence as a valid issue and major health and safety cost for enterprises, the elimination of which is necessary for success. It is essential to link managerial and economic goals, and make the fight against violence an integral part of enterprise culture and growth, as well as a self-sustained process in the workplace.

The cost of violence in the workplace is difficult to quantify. However, it includes costs related to disabilities, loss of workdays, increased workloads for other workers, lower levels of service for patients and legal issues.

Early crisis intervention is dramatically cost-effective for employers. Research shows that early intervention cuts costs in terms of time loss, treatment costs, litigation, rehabilitation and disability. Employers can provide assistance through on-scene support, individual consultations, group debriefings, family assistance, workplace re-entry and follow-up services. (1)

What are the hidden costs of workplace violence? (2)

  • Loss of moral and increased stress
  • Lower productivity in victims of post-traumatic stress disorder
  • Higher workers' compensation costs
  • Negative publicity (Just ask the post office!)
  • Hardship to victim's family

The Cost of Workplace Violence

Violence on the job or even the mere threat of it can be perilously expensive. Statistics in an issue of a 1997 issue of  'The Lipman Report" (3) shows stress-related claims cost on an average $15,000 to $20,000 per claim. Workplace injuries--not necessarily from violence- cost an average of $10,172 to $15,745. Examples of violence costs are:

  • Personal injury claims
  • Damage to equipment
  • Increases in insurance premiums
  • Lawsuit costs
  • Lost work hours from intimidated employees
  • Psychological costs
  • Loss of qualified personnel as a result of intimidation

Estimating Workplace Violence Costs

The FBI Department of Justice states that we face economic loss as the result of violence, though it is hard to quantify.  Violence in the workplace \ results in  lost work time, damaged employee morale and productivity, increased workers’ compensation payments, medical expenses, and possible lawsuits and liability costs. Estimates of the costs, from lost work time and wages, reduced productivity, medical costs, workers’ compensation payments, and legal and security expenses, are even less exact, but clearly run into many billions of dollars. (4)

Read more about the hidden and real costs of Workplace violence at one of the following references:

  1. 1. Tri-National Conference on Violence as a Workplace Risk; Montreal Canada
  2. 2. Missouri Office of Administration
  3. 3. The Lipman Report; Workplace Violence Today; August 1997
  4. 4. FBI Department of Justice on Workplace Violence

Use this presentation on Workplace Violence in your workplace:

ABCs for Preventing Workplace Violence Powerpoint Presentation; The Case for Workplace Violence Training
 

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