Workplace violence, harassment annually cost companies at least USD 1.7 Mn – IFC

Workplace violence and harassment cost companies at least USD 1.7 million every year, according to an International Finance Corporation (IFC) study to better understand the prevalence and impact of violence and harassment on employees and businesses in Sri Lanka between 2020 and 2022.

This research covered workplace experiences and behaviors, and how these affect employees and was presented at the Top10 WIM Diversity Champion Awards 2024 hosted by Women in Management (WIM) on Monday.

“Due to the impacts of workplace violence and harassment, each company surveyed lost six working days per employee, per year, which is the equivalent of at least $1.7 million across all nine companies,” she explained.

This is a modest estimate as it does not include the costs for addressing the time lost to workplace violence and harassment, which include payment for overtime, turnover costs, recruitment costs, and/or productivity delays.

IFC Sri Lanka Business Case for Respectful Workplaces Key findings also highlighted that three out of five people surveyed experienced some form of workplace violence or harassment.

“Of all the survey participants, 61% reported experiencing at least one form of workplace violence or harassment (bullying, sexual harassment, and/or online violence), or domestic violence. Bullying, which was the most prevalent form of workplace harassment, was experienced by 59 percent of all survey participants.”

The study also revealed that nearly one out of five people surveyed felt unsafe at work in the four weeks prior to the survey. Workplace violence and harassment impacts employees of all genders and ages, although some people are especially vulnerable to it.

Employees with a disability were more likely to experience all forms of workplace bullying (68% versus 59% of employees who did not have a disability). People with a disability also said that their work was affected by domestic violence at a rate that was more than four times higher than the rate for other survey participants.

Sexual harassment and online violence seemed to be the most underreported forms of workplace violence.

Country Manager for World Bank and IFC Sri Lanka Gevorg Sargsyan said, “Focusing on diversity through the lenses of gender, sexual orientation, race, ethnicity, ability isn’t just the right thing to do.”

“When organizations are diverse, inclusive, and equitable, everyone benefits. When equity is prioritized, it promotes fairness, respect and inclusion. It also makes pure business sense.”

Building on these study findings, and similar IFC research in other markets, including IFC advisory experience, a training module and tool kit was developed to provide guidance for private sector organizations who are interested in fostering a respectful workplace beyond the performance standards requirements.

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