Employers must be vigilant in providing a workplace that is safe from bullying and harassment, not only to fulfil their legal obligations but also to mitigate significant economic risks. A recent report by the Human Rights Commission, in collaboration with KPMG, has revealed that workplace bullying and harassment cost New Zealand employers a staggering $1.5 billion annually. The Equal Employment Opportunities Commissioner, Saunoamaali’i Karanina Sumeo, described the report as a crucial milestone, underscoring the urgent need for employers to ensure safe and supportive environments.
Economic Impact of Bullying and Harassment
According to the report, the economic costs for employers include:
Absenteeism: Increased use of sick leave and annual leave as employees seek to avoid the workplace due to bullying or harassment.
Higher Turnover Rates: Nearly half of the economic impact is due to worker turnover and replacement costs, with around one in six employees resigning after experiencing bullying or harassment. This leads to additional recruitment expenses and temporary productivity losses.
Decreased Work Performance: The productivity of affected employees and the time spent addressing internal complaints contribute to significant costs.
Specific Impact on Women: The report highlights that women are disproportionately affected, with $780 million of the total cost attributed to bullying and harassment impacts on female employees.
The average cost per employee affected by bullying and harassment is $1,618.
Legal Framework and Recent Developments
New Zealand’s legal framework for addressing workplace bullying and harassment has seen significant developments. The Health and Safety at Work Act 2015 (HSWA) requires all businesses to ensure the health and safety of workers as far as reasonably practicable. This includes providing a work environment that is free from bullying and harassment.
In recent years, several high-profile cases have emphasised the importance of compliance with these regulations. For example, in 2023, a notable case involving the Auckland Council highlighted the consequences of inadequate responses to workplace bullying. The Employment Relations Authority (ERA) found that the Council had failed to address complaints effectively, resulting in substantial penalties and a renewed focus on robust workplace policies.
The Auckland Council case involved multiple allegations of bullying against a senior manager, which were mostly upheld by the ERA. Despite these findings, the manager was reappointed to a high-paying role, causing public outcry and highlighting systemic issues within the council’s handling of bullying complaints (Newstalk ZB) (RNZ).
Best Practices for Employers
To foster a workplace free from bullying and harassment, employers should:
Implement Best Practice Policies and Procedures: Develop and enforce comprehensive policies to prevent and respond to incidents of bullying and harassment.
Employee Induction: Ensure all employees are thoroughly inducted into these policies and understand their obligations regarding appropriate behaviour.
Prompt and Fair Investigations: Respond quickly and effectively to complaints and concerns, conducting investigations with fairness and promptness.
Training Programs: Consider regular training sessions for all employees and managers to reinforce the importance of a respectful and inclusive workplace.
Culture of Respect and Inclusivity: Cultivate a workplace culture that values respect and inclusivity, making it clear that bullying and harassment will not be tolerated.
Supportive Reporting Environment: Create an open and supportive environment where employees feel safe to report incidents without fear of retaliation.
By taking these steps, employers can not only comply with legal obligations but also create a healthier, more productive work environment that minimises economic losses and enhances overall employee well-being.
If you need assistance with bullying and harassment in your workplace Business 360 is here to help. Contact us by calling 0800 449 289 or email info@business360.nz.
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