By Hayley Boud
The cost of workplace bullying is devastating to both the employer and the employee
Research has shown the costs of workplace bullying for the target, the organisation and the community can be devastating.[1] The cost is both pecuniary and non-pecuniary. Although the cost of pain and suffering to the target is difficult to quantify[2] it can be extremely damaging to their career. [3] Feeling helpless, fearful, and/or isolated can lead to depression, anxiety and stress which left unchecked may develop into physical illnesses, psychological disorders, addictions and even suicide.[4] It has been suggested that repeated and prolonged bullying at work could cause Post Traumatic Stress Disorder.[5]
As with international literature, workplace bullying in New Zealand has been reported to have negative effects for both bully and target.[6] Targets of workplace bullying in the New Zealand travel industry “reported higher levels of stress, lower levels of emotional wellbeing, higher absenteeism, and a higher intention to leave the organisation”.[7]
The effect of workplace bullying is not self-contained to the target but can “pervade the entire workplace, the family of the target and the community in which they live”.[8] Both targets and witnesses of bullying exhibit higher incidence of absenteeism, reduced work commitment, satisfaction and motivation.[9] There is also the cost of supplanted time and effort helping the target overcome bullying and the associated investigation and possible court action.[10]
A 2001 Australian study revealed the financial costs were estimated between AU$16,977.00 and AU$24,256.00 per Australian organisation affected by workplace bullying.[11] It was estimated that larger corporations lost AU$600,000.00 - $3.6 million per 1,000 employees, per annum once hidden costs were included. According to Tim Bentley of the New Zealand Work Research Institute, workplace bullying is costing New Zealand businesses tens of millions of dollars each year.[12]
Because workplace bullying is an extremely costly burden to the worker, your business and the community it is important that employers adequately resolve and prevent its occurrence. We strongly advise employers to seek legal advice on how to prevent bullying occurring in their workplace and how to resolve it quickly and satisfactorily.
What is workplace bullying?
Distinguishing workplace bullying from a mere personality clash can be difficult.[13] New Zealand legislation has not specifically defined workplace bullying, nor has it been defined by the Employment Court.[14] Internationally, there are a wide range of definitions with no agreement reached on a single, acceptable definition.[15] However, it is generally agreed that workplace bullying consists of persistent, interpersonal abusive behaviour that may cause severe social, psychological and psychosomatic problems in the target.[16]
Internationally, there has been more sophisticated awareness of the complexity of workplace bullying.[17] This new sophisticated awareness leads to a broader definition of workplace bullying that includes ignoring the target or “the silent treatment”; insulting the target either in front of colleagues, privately or behind their back; refusing to delegate work; withholding information from the target; making unreasonable work demands; taking credit for the target’s work; deliberately blocking promotion; and excluding the target from social aspects of work.[18]
New Zealand workplace bullying specialist Hayden Olsen describes workplace bullying as repetitive unwanted and unwarranted behaviour that a person finds offensive, intimidating or humiliating that detrimentally affects a person’s dignity, safety and well-being.[19]
In Evans v Gen-I Limited, Dr Dzintra King defined bullying as “something that someone repeatedly does or says to gain power and dominance over another, including any action or implied action, such as threats, intended to cause fear and distress”. [20]
The Employment Authority in Kneebone v Schizophrenia Fellowship Waikato concluded that that the bully’s behaviour must:
- Be repetitive
- Carried out with the desire to gain power or exert dominance
- Carried out with the intention to cause fear and distress.[21]
In New Zealand, the type of the workplace is also taken into consideration when determining whether certain behaviour amounts to bullying.[22] Strict management or personality clashes would not be sufficient to sustain a bullying claim.[23] In Nagai v Carlton Hotel (Auckland) Limited the conduct of the head chef in yelling and criticising the claimant was found by the Authority to be firm management and not bullying. The Authority noted the behaviour came “well within the scope of expected and acceptable conduct between a supervising chef and an employee in a busy kitchen.”[24]
While there is no single definition in New Zealand law, definitions consistently describe workplace bullying as persistent and unwelcomed exposure of intimidating and distressing behaviour causing harm to the target with emphasis on the bully’s intent for their behaviour.
Employers need to know how to manage workplace bullying
Most commonly, strategies are aimed at preventing workplace bullying at the organisational level and are often classified as primary, secondary or tertiary preventions.[25] Primary preventions proactively prevent workplace bullying occurring by reducing the risk of exposure.[26] One commonly promoted strategy in primary prevention is to create a culture of anti-bullying where the conduct is considered unacceptable.[27]
Secondary preventions aim to reverse the effect of workplace bullying, prevent its repetition and provide resources for targets to recover.[28] Tertiary preventions are targeted at rehabilitation and reducing the negative impacts of the bullying on both the target and the company.[29]
While it may appear more beneficial to focus on primary preventions, it is essential that secondary and tertiary preventions are also developed. All three preventions are necessary in the prevention and management of workplace bullying. Clear organisational policies aimed at communicating to employees the company’s expectations and processes relating to workplace bullying are essential.
However, since bullying can be subtle and difficult to define, organisations may have complications handling workplace bullying especially where perpetrators are senior.[30] Further difficulties arise where the perpetrator is a productive worker.[31] Where organisations do not effectively deal with bullying, a target may be forced to leave the organisation or deal with the bully alone. [32] A target may feel the only option for resolution is to claim a personal grievance subjecting themselves to further stress and possible re-victimisation.[33] Unresolved cases may lead to court action which is very costly for the employer.
Sound legal advice on how to prevent and resolve workplace bullying complaints is imperative. For further information please call us on 07 838 0808 or email hayley@ghlaw.co.nz
[1] Caroline Kelly “The problem of workplace bullying and the difficulties of legal redress: an Australian perspective” (Student Paper, University of Melbourne: Centre for Employment and Labour Relations Law, 2011).
[2] Duncan Chappell and Vittorio Di Martino “Violence at work” (2006) International Labour Organisation 17 at 136.
[3] Kate Blackwood and Tim Bentley “Out of step? The efficacy of Trans-Tasman law to combat workplace bullying” (2013) 38(1) New Zealand Journal of Employment Relations 27.
[4] Duncan Chappell and Vittorio Di Martino, above n 2.
[5] Michael Scott and Stephen Stradling “Trauma, duress and stress” in Noreen Tehrani (ed) Building a Culture of Respect: Managing Bullying (Taylor and Francis, London, 2001) 33.
[6] Kate Blackwood and Tim Bentley, above n 3, at 31.
[7] Tim Bentley and others “Perceptions of workplace bullying in the New Zealand travel industry: Prevalence and management strategies” (2012) 33 Tourism Management 351 at 351.
[8] Duncan Chappell and Vittorio Di Martino, above n 2.
[9] Helen Cowie and Katerina Ananiadou “Perceptions and experience of workplace bullying in five different working populations” 29(6) Aggressive Behavior 489.
[10] Kate Blackwood and Tim Bentley, above n 3.
[11] Michael Sheehan and others “A model for assessing the impacts and costs of workplace bullying” (Paper presented to the Standing Conference on Organisational Symbolism, Trinity College Dublin, 30 June – 4 July 2001).
[12] Andre Huber “Workplace Bullying Costs Millions” The New Zealand Herald (online ed, Auckland, 13 October 2012). <http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10840262>.
[13] Ministry of Business and Innovation “Workplace bullying: an update” (August 2009) <http://www.dol.govt.nz/er/services/law/case/themes/2009-08-workplace-bullying.asp>.
[14] Isaac v Chief Executive of the Ministry of Social Development ERA Auckland AA 200/08, 5 June 2008 at [55].
[15] Tim Bentley and others “Perceptions of workplace bullying in the New Zealand travel industry: Prevalence and management strategies” (2012) 33 Tourism Management 351.
[16] Stale Einarsen and others “The concept of bullying and harassment at work: the European tradition” in Einarsen and others, Bullying and harassment in the workplace: Developments in theory, research and practice (2nd ed, 2011, CRC Press, Boca Raton, FL) 3.
[17] Paul McCarthy and others Bullying: From the Backyard to the Boardroom (2nd ed, 2001, The Federation Press) xi.
[18] Caroline Kelly “The problem of workplace bullying and the difficulties of legal redress: an Australian perspective” (Student Paper, University of Melbourne: Centre for Employment and Labour Relations Law, 2011) at 8-9.
[19] Hayden Olsen Workplace Bullying and Harassment (CCH New Zealand, Auckland, 2005) at 8.
[20] Evans v GEN- i Ltd ERA Auckland AA333/05, 29 August 2005 at 2-3.
[21] Kneebone v Schizophrenia Fellowship Waikato Incorporated ERA Auckland AA 31/07, 13 February 2007 at [207].
[22] Nagai v Carlton Hotel (Auckland) Limited ERA Auckland AA 339/04, 19 October 2004.
[23] Briggs v New Zealand Gem Trading Company ERA Auckland AA 194/04, 4 June 2004.
[24] At 4.
[25] Maarit Vartia and Stavroula Leka “Interventions for the Prevention and Management of Bullying at Work” in S Einarsen and others (eds) Bullying and Harassment in the Workplace: Developments in Theory, Research and Practice (2nd ed, CRC Press, Boca Raton, Florida, 2011) 359.
[26] Maarit Vartia and Stavroula Leka, above n 1.
[27] Maureen Duffy “Preventing Workplace Mobbing and Bullying with Effective Organisational Consultation, Policies and Legislation” (2009) 61(3) Consulting Psychology Journal: Practice and Research 242.
[28] Maarit Vartia and Stavroula Leka, above n 1.
[29] Maarit Vartia and Stavroula Leka, above n 1.
[30] Paul McCarthy and Michelle Barker “Workplace Bullying Risk Audit” (2000) 16(5) Journal of Occupational Health and Safety – Australia and New Zealand 409.
[31] Helge Hoel and David Beale “Workplace Bullying, Psychological Perspectives and Industrial Relations: Towards a Contextualized and Interdisciplinary Approach” (2006) 44(2) British Journal of Industrial Relations 239.
[32] Helge Hoel and David Beale, above n 7.
[33] Paul McCarthy and Michelle Barker, above n 6.