Sexual Trauma Affects Company Profitability

Brigitte Kimichik • November 18, 2019

Sexual Trauma Affects Company Profitability

Sexual harassment can have a devastating impact on the bottom line profitability of your company. The mental and physical impact of sexual harassment on victims can result in reduced productivity and an increase in health issues (including for depression, anxiety, and post traumatic stress disorder), an increase in absences, sick leave, health insurance costs, and ultimately turn over of employees. One of the few available studies on the topic is dated as far back as 1988 and involved personnel, HR directors, and equal-opportunity offices representing over 3.3 million employees and 160 companies. The study concluded that “a typical Fortune 500 company with 23,750 employees lost $6.7 million a year because of absenteeism, low productivity, and staff turnover.” 

 

These effects, however, do not even consider the economic, career, and long-term mental-health consequences victims experience once they leave their job, either due to intolerable sexual harassment or due to how the company mishandled a harassment claim. 

For victims in other industries, consequences can be much more dire. For example, experiences of sexual trauma that occur during military service are associated with risk factors for depression, substance use disorders and suicide. Military Sexual Trauma – A Risk Factor for Suicide research indicates that women veterans have higher rates of depressionthan non-veteran women and a shocking 250% higher suicide rate than civilian women. 


Educating employees and company leaders regularly and effectively regarding sexual harassment prevention are likely to engender a more healthy workplace of dignity and respect and ultimately improve the bottom line with respect to health related costs and profitability. For bad behavior to change, there must be consequences and they should be wildly known and enforced. Committing to transparency will help #changetheculture to a more healthy and prosperous environment, free from #abuse and #workplacesexualharassment.



#TimesUp. Let’s #playniceatwork. For more info on our new book “Play Nice - Playground Rules for Respect in the Workplace,” please join us at the www.thesandboxseries.com


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