Study seeks to measure true cost of

workplace violence to businesses

A new study has sought to summarise and categorise the various costs hidden and otherwise of workplace violence among employees.

The study went through the cost of workplace violence including enormous financial impacts (estimated in many billions of euro) and also the psychiatric trauma, physical injuries and sometimes fatalities in the wake of such workplace violence.

The authors of the study went through statistics from various compensation claims, law enforcement information, and government statistics on this and absenteeism in order to arrive at their conclusions.

The true cost of employee on employee violence is difficult to measure accurately but the headings which the authors arrived at are as follows:

1. Hidden incident-Costs: - The authors seek to set out the hidden costs to the organisation of bad relationships between employees leading up and prior to the actual violent incident. Such violent incidents are normally not spontaneous or unexpected and there is a lead in period which can cause a serious lack of morale leading to a reduction in productivity, increased absenteeism and reduced engagement on the part of the staff involved.
2. Cost of Critical Incident Care.
3. Cost of Temporary Closure of the workplace.
4. Lost Revenue.
5. Healthcare Premium Increase caused by need for medical or psychological services.
6. Rise in Employer Liability Insurance Premiums.
7. Cost of Litigation.
8. Cost of Reputational Damage to Organisation as a result of adverse publicity.
9. Expenses Associated with Increased Employee Turnover.
10. Negative Impact on Shareholder Value.

The authors conclude that it is in the interest of any Organisation to take steps to forsee and prevent such employee on employee violent incidents.

If you require any further detail or advice, please contact John Reid in O’Rourke Reid
Dial: +353 1 240 1200

This document is for information purposes only and does not purport to represent legal advice.  
© O’Rourke Reid 2019