What Damage Does Harassment Do To Employees And Companies?

Harassment in the workplace is more than just uncomfortable or inappropriate behaviour that can be ignored or swept under the table. It has serious and far-reaching effects on both employees and the companies they work for. From mental health struggles to financial losses, the impact is often underestimated until it becomes too serious to ignore, and the damage is done.  

What is harassment?  

According to an article published by law firm, Cliffe Dekker Hofmeyer, in the workplace, harassment may be the result of physical, verbal, or psychological conduct.  

• Physical harassment includes physical attacks, simulated or threatened violence, or gestures (such as raising a fist as if to strike a person or throwing objects near a person).  

• Verbal bullying may include threats, shaming, hostile teasing, insults, constant negative judgment, and criticism, or racist, sexist, or LGBTQIA+ phobic language. 

• Psychological harassment in the workplace may be associated with emotional abuse and involves behaviour that has serious negative psychological consequences for the complainant such as is often the case with verbal abuse, bullying and mobbing. 

 

To learn more about the possible knock-on effects of harassment in the workplace, read our blog, “Trauma in the workplace.”

 

According to the CCMA examples of harassment are: 

• bullying;  

• spreading malicious rumours, or insulting someone – particularly on gender, race or disability grounds;  

• ridiculing or degrading someone – picking on them or setting them up to fail;  

• exclusion or victimisation;  

• unfair treatment, for example based on race, gender sexual orientation, pregnancy, age, disability, religion, or HIV status;  

• overbearing supervision or other misuses of power or position;  

• unwelcome sexual advances – touching, standing too close and displaying of offensive material;  

• making threats/comments about job security without foundation;  

• deliberately undermining a competent worker by overloading and constant criticism; and  

• preventing individuals progressing by intentionally blocking promotion or training opportunities. 

 

Here is a breakdown of the damage harassment can cause: 

1. Emotional and mental health consequences 

Harassment can take a significant toll on a person’s emotional and mental well-being. Victims often suffer from anxiety, depression, low self-esteem – and even post-traumatic stress disorder (PTSD). These mental health challenges can lead to difficulties in focusing on work, reduced motivation, and increased absenteeism. Over time, the emotional damage can become long-lasting, affecting not only the employee’s professional life but also their personal relationships and quality of life.  

 2. Physical health and stress-related illnesses 

 The stress from being harassed can manifest physically. Victims can experience headaches, insomnia, digestive disorders, or high blood pressure. Chronic stress also weakens the immune system, making employees more prone to illness. In extreme cases, ongoing workplace harassment can contribute to heart disease or other serious health conditions. The resulting health problems not only affect employees’ well-being but also increase their reliance on healthcare services and sick leave. 

3. Decreased productivity and engagement 

Employees who are being harassed are far less likely to feel engaged or committed to their work. The stress and discomfort affect their concentration, lower their productivity, and diminish their ability to collaborate with colleagues. In some cases, they may avoid certain tasks or individuals entirely, which can disrupt workflow and hinder their overall performance. Teams with poor morale and low trust often suffer from missed deadlines and lower quality output. 

4. High employee turnover 

One of the most obvious outcomes of workplace harassment is high employee turnover. Talented professionals who feel unsafe or unsupported will often choose to leave rather than remain in a toxic work environment. This results in added recruitment and training costs for the company. In addition, a company’s reputation may suffer if it becomes known as a place where harassment is tolerated, making it harder to attract top talent. 

5. Legal and financial repercussions for companies  

• South Africa’s Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace defines harassment broadly, encompassing various forms of unacceptable behavior. This includes not only sexual harassment but also harassment based on race, gender, disability, and other protected characteristics, as well as bullying, intimidation, and exclusion. 
•  South African labour law holds employers accountable for harassment. Employers have a duty to protect their workers from harassment and to educate them about this issue. South African labour law explicitly addresses harassment in the workplace, recognising it as a form of unfair discrimination. This is primarily covered by the Employment Equity Act (EEA) and the Labour Relations Act (LRA), along with the Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace. Under South African law an employer assumes liability under section 60 of the EEA for unfair discrimination. 

 

Employers are encouraged to develop a code of conduct on harassment 

Employers are well advised to ensure that they: 

• have adopted practices and instituted effective procedures and mechanisms for dealing with claims of violence or harassment, 

• have developed and implemented the necessary guidelines, policies and disciplinary rules that govern anti-harassment, and 

• have ensured that employees are aware of the applicable rules/polices. 

 

To learn how 4Seeds Consulting changed a toxic culture into one of kindness and respect, read our case study, “Building a culture of civility and kindness in the workplace.” 

 

In conclusion 

Harassment in the workplace isn’t just a personal issue. It is problem with serious emotional, physical, and financial consequences for both workers and the companies who employ them. Companies must take proactive steps to prevent and address harassment, not just for the well-being of their employees but also for their long-term business success. 

Over to you for sharing your comments and experiences.