Workplace bullying costs your business: How to spot it and stop it

Jun 9, 2025 9:38:46 AM

Workplace bullying is a serious issue that affects both people and profits. In New Zealand, over 91% of employees have experienced bullying and nearly 10% face it weekly or more. For small business owners without dedicated HR resources, it's vital to take a proactive approach to barring bullying.

Bullying hurts your bottom line

The financial impact of workplace bullying on New Zealand businesses is around $1.34 billion annually. For small businesses, these costs can be particularly damaging. When employees experience bullying, their productivity can drop by as much as 57%, and they are among those most at risk of burnout.

The impact goes beyond the individual to affect the morale and performance of the entire team. The company will see more absenteeism, higher staff turnover, and potential costs from mediation or court.

Learn to identify bullying in your workplace

Workplace bullying is about more than hurt feelings; it creates genuine risks to health and safety as communications break down. It is characterised by repeated behaviour that harms a person psychologically or physically.

Common signs of bullying include:

  • unfairly blaming others or making false accusations
  • setting impossible deadlines or unmanageable workloads
  • public criticism or ridicule
  • excluding or isolating team members
  • withholding necessary information
  • taking credit for others' work
  • spreading rumours or gossip
  • using insults, offensive jokes, or intimidation
  • excessive monitoring or micromanagement without clear reason
  • changing expectations without explanation.

Be aware of your special role as the owner and leader

As the business owner, your behaviour sets the tone. Model respectful communication in all interactions and show that you take appropriate workplace behaviour seriously. Research shows that leadership behaviour is one of the strongest predictors of workplace culture.

As the leader, the way you behave has special ramifications. You’re in a position of power over employees, even if you see them all as equals. Your actions can’t be separated from the surrounding power dynamic. For example, good-natured banter between team members can be interpreted very differently when one of the participants is more senior.

Of course, reasonable management actions are not bullying. You can set high standards, give clear feedback, and require accountability without crossing the line. The key is to do it with respect, fairness, and transparency.

Ask yourself these questions.

  • Do you often raise your voice or get angry when challenged?
  • Do you dismiss others' input or believe your way is always best?
  • Do you criticise staff publicly or make them feel incompetent to motivate them?
  • Do you find yourself thinking your team is incompetent, leading to frustration?
  • Are you setting tasks without proper training or support, then criticising failure?

Create a workplace where bullying cannot thrive

Creating a successful team is about building a safe, supportive culture where bullying cannot take root. This means having a well-communicated and straightforward policy that prohibits bullying and harassment. It should cover the process for reporting bullying and give people more than one option for who they can talk to. Investigating all complaints promptly and fairly leads to the best outcomes.

Take a proactive approach with stay-terviews

‘Stay-terviews’ are a proactive way to discuss what makes employees want to stay and do their best work. These conversations can be part of regular catch-ups or built into regular employee engagement surveys. This will help spot issues early so you can address any concerns before they escalate.

A respectful workplace builds a stronger business

Addressing workplace bullying boosts productivity, improves staff retention, and creates a better work environment. In New Zealand, Professor O'Driscoll et al. studied over 1,700 employees across 36 organisations. The research found that workplaces with low bullying rates have much higher employee commitment and wellbeing.

Creating a workplace free from bullying is not just good for your people, it's good for business. If you need support in addressing workplace bullying, consider connecting with a Business Mentor who can provide guidance tailored to your specific situation.