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The Costs of Negative Workplaces

Updated: Jan 11, 2022

We all have most likely worked in a negative work environment at least once in our lives, but have you ever thought about how much working in a negative environment costs a company? Let’s take a look at some of the most common costs that occur with negative workplaces.


Simply put, people can’t produce their best work when they are in a negative environment. They can experience stress, lack of motivation, anxiety, depression, and more. Not only are these detrimental to employee’s health but it also negatively affects a company’s bottom line.

To calculate the cost, consider:

  • Reduced work quality

  • Health insurance costs (due to mental health)

  • Workers’ compensation claims for stress


You have probably heard the saying that time is money. That is true, especially in the workplace. How much time has been spent addressing the negative workplace that has been cultivated?

To calculate the cost:

  • (Your hourly rate) x (how much time has been spent)

  • Do the same for everyone involved

  • Also, consider things such as absenteeism, unemployment insurance, investigations, training programs.


Negative workplaces equal high turnover, which leads to constant hiring. The average time it takes for an employee to become fully functional is six months from when they started. From hiring to the six-month point every day companies are losing money.

To calculate the cost, consider:

  • Recruiting and training

  • Processing employees

  • Overtime

  • Lost Productivity

Legal Costs

Wrongful termination, harassment, and emotional distress suits are just a few of the legal issues that occur in a negative workplace. UCLA’s Rand Center for Law and Public Policy showed plaintiffs most often earn six figures, paid out by the employer. In cases where the judge dismisses the case before going to trial, average legal fees amount to 75 grand and if the case goes to trial the average cost is 150 grand.

To calculate the cost, consider:

  • Counsel Fee

  • Settlement

A negative workplace can cost a company big time. Understanding the need for an inclusive and positive workplace is essential to increasing revenue, productivity, and innovation.

Call FIG today at 800-834-4946 and say “Workplace” for 50% off the cost of a comprehensive diversity audit to help evaluate your company’s progress with creating an inclusive workplace.


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