Some of the costs of workplace bullying are easy to quantify. According to union spokesperson Geoff Lewin, in 2009-10, Victoria Police were paying for a “serious problem with bullying that they will not even acknowledge,” to the tune of a $50 million blowout in workers’ compensation premium.

However, the most devastating impacts of workplace bullying defy monetary valuation. An inquest into the suicide of a young Melbourne waitress led to three of her former work colleagues, as well as the owner of the popular cafe at which they all worked, pleading guilty to workplace charges. Only nineteen when she died, this young woman experienced what Coroner Peter White described as an ''unbearable level of humiliation'' thanks to bullying at work.

Both bullying and sexual harassment can poison the working environment. However, recent Canadian studies have found that bullying sometimes has an even greater negative effect on the victim than sexual harassment.  Bullying can be done in such an insidious way that no-one may know that it is happening, except the victim. People who have experienced bullying are more stressed, angry, anxious, less committed and more likely to quit. 

The financial cost of workplace bullying to businesses in Australia is estimated to be between $6 billion and $13 billion a year.  This includes indirect costs, such as absenteeism, labour turnover, loss of productivity and legal costs.  According to research from Queensland’s Griffith University, 3.5% of the working population is bullied with the average cost of serious bullying being $20,000 per employee, excluding all claims for employees’ compensation.  Amazingly, the majority of victims report bullying by more senior staff.  Almost one third of victims said that the bullying was from their head of department or section, while 16% said it was their Chief Executive or Managing Director. 

Bullying or harassing behaviour is unreasonable behaviour that intimidates, humiliates or causes harm to an individual or group. It might be obvious or hidden.  Often this behaviour is considered to be part of the culture within the workplace and may seem trivial. However, the repeated pattern of such behaviour is likely to undermine an individual’s confidence, self esteem and health. 

While one-off acts can be serious and need to be addressed they do not necessarily constitute bullying.  However, in some organisations one-off acts such as initiation ceremonies can be seen to be the origin of bullying and must be dealt with.  Although a single incident of workplace harassment may not be considered to be bullying behaviour, it can be distressing for the individual and still cause injury. 

Employers should treat single incidents of harassment as warning signs and take preventative action. Depending on the circumstances a single incident of harassment may be an offence under the Discrimination Act. Other associated legislation includes Occupational Health and Safety Acts, Industrial Relations Acts, Anti-Discrimination Acts, Employees’ Compensation law and Federal workplace laws.

Typical bullying behaviour can be seen as repeatedly shouting or swearing at colleagues, personal insults and name calling, persecution through threats and instilling fear. Examples of bullying behaviour also include unfair and excessive criticism, public insults, ignoring an employee’s point of view, constantly changing or setting unrealistic work targets and undervaluing an individual’s or group’s efforts at work. 

Properly conducted performance feedback or counselling is not bullying. It is important to differentiate between a person’s legitimate authority at work and harassment or bullying behaviour.  All employers have a legal right to direct and control how work is done and managers have a responsibility to monitor workflow and give feedback on performance.  Feedback or counselling on work performance or behaviour differs from bullying in that it is intended to assist staff to improve work performance and/or the standard of their behaviour.  If an employee has performance problems these should be identified and dealt with in a constructive way that is not humiliating or threatening.  Disciplinary grievance processes outlined in relevant Enterprise Bargaining Agreements, Industrial Awards and other arrangements should be followed. 

Bullying and harassment affects everyone within the workplace and those at the home of the victim.  Effects on the employee may include increased stress, family hardship, feelings of powerlessness and absenteeism from work resulting in depression, physical ailments, low self esteem, isolation, decreased job satisfaction and suicidal thoughts. 

On the home front, effects may include a breakdown of relationships, inappropriate behaviour at home, change in social rolls, loss of coping skills, withdrawing from the family, psychological dysfunction and unexplained physical illness. 

For the organisation the effects may include employee absenteeism, reduced productivity and profitability, loss of staff through illness and resignation, retraining costs, increased industrial and legal issues, poor organisational culture and negative social groups. 

For other colleagues in the workplace some likely effects include loss of peer support, poor interpersonal perceptions, avoidance by or of others, loss of promotion, anger directed at management, increased risk behaviours seen by others and disciplinary action or reaction.
Due to the sensitivity of many bullying incidents issues must be resolved confidentially and as quickly and as informally as possible, minimizing conflict and stress for the individuals involved. 

All employers should take reasonable steps when addressing bullying and harassment. While specific measures will vary according to the size of the business, a “zero-tolerance” approach to bullying is always the appropriate starting point.

There are two key requirements: dealing with bullying if and when it does occur, and preventing instances of bullying in the first place.

Small businesses should have a written bullying and harassment policy where a large business should have a policy and clear procedures, a designated officer to deal with issues, external mediators, internal training and education. Every employer should specify grievance procedures within their bullying and harassment policy. The policy should be included in induction programs, awareness sessions, in house newsletters, displayed on notice boards and discussed at staff meetings and team briefings. 

Employers must actively implement precautionary measures to minimize the risk of discrimination and harassment occurring. Precautionary measures include:

• Providing staff with training about what constitutes bullying and how to recognise and avoid bullying behaviour;
• Being aware of risk factors for bullying, including organisational change; and
• Developing a healthy and supportive workplace culture.

Managers must stop the behaviour once it is identified, follow the workplace procedures and keep evidence of everything that is seen or read regarding the issue, e.g. emails, diary notes. This information may be vital if the issue escalates to a legal matter.

Where employers have an obligation to provide a safe and healthy working environment, employees also have obligations. It is important that they take steps to protect their own health and safety, and that of colleagues and visitors.  Employees must also observe, and supervisors must ensure that they observe risk management, health, safety, security and personal protective equipment procedures and requirements and must identify and report hazards promptly.  Employees should also comply with lawful direction given by an authorized officer.  However, employees do have a right to question any instruction which they think may be unlawful or unethical. 

If you have poor organisational culture, rising claims of bullying or harassment or wish to have detailed and customised training delivered to your workforce contact Insight Services Group.