Low morale, decreased productivity, added stress and increased tension are all harmful effects on the job when you’re in a toxic workplace environment. However, a toxic work environment can cost companies a lot of money due to missed days and high employee turnover. In fact, employee turnover has cost American companies over $223 billion in the past five years.
Studies show that each time an employer loses an employee, it can cost the company approximately 33% of the employee’s yearly salary. In other words, if someone’s yearly salary is $50,000, it will cost an employer $16,500 to replace that person. That’s on top of the $50,000 salary. Every time an employee leaves a company, the costs add up quickly.
What is the Cost of Replacing Employees
As many as one-third of all employees will leave a job in the first two years. The reason given most often for leaving a company is a toxic work environment or toxic leadership. Each time a person leaves a job, there are costs to replace that person and find a new suitable hire. Help wanted advertisement and hiring job recruiters costs companies a great deal of time and money.
Job recruiters can charge as much as 30% of a new employee’s annual salary. This cost is on top of the interview expenses, time spent checking references, and tests or surveys given to potential hires. Once a person is hired, then comes the sign-on bonuses, administrative processes, training costs, benefits enrollment, and new equipment and supplies.
During the new hire training process, the new employee isn’t as productive. Other employees have to pick up the slack or train new hires, which takes their full attention away from their tasks and will eventually cause added stress and decreased productivity. Employees taking on extra responsibility can cause even more tension in an already toxic work environment.
How to Get Ahead of a Toxic Work Environment
If you’re a boss or company leader, you’re in a position to create a positive and uplifting workplace for your employees. Considering nearly 60% of people that leave a job say they left because of a manager or boss, it’s of the utmost importance for leadership to provide employees with a safe environment where they can communicate their concerns and issues.
This works both ways. As a leader, you need to express expectations and provide feedback, as well as listen and address employees’ concerns when they arise. Many people feel uncomfortable about coming to their superior about issues at work for fear of ridicule or even losing their position of employment.
As many as 1 in 3 women say they have been a victim of sexual harassment in the workplace, but they’re afraid to report it. Often, they will just keep quiet or leave the job, which ends up costing the company money. Ensuring the workplace is free from toxicity such as sexual harassment will decrease employee turnover and potential lawsuits.
If you’ve been a victim of sexual harassment in the workplace, contact an attorney to get the help you deserve. Leaving your job without addressing the issue will not only cost you your salary, but cost the company to replace employees when the toxic environment continues.