Exceptional organizations do not tolerate bullying. But unfortunately, nearly all organizations have, at least, one person who is well-known as a bully. Workplace bullies can be senior or junior but they usually wield a disproportionate amount of power. The behavior of workplace bullies always has a detrimental effect on all parts of an organization—including its bottom line.

Workplace bullying, of course, also causes serious human harm. And now there is a call, in some jurisdictions, to address it. For instance, the Financial Conduct Authority in the United Kingdom now expects some organizations not only to report on nonfinancial misconduct (including bullying) but also to provide details on how they notice and address it. I believe it is about time.

Here’s how workplace bullying impacts teams—and what can be done to address workplace bullying.

How workplace bullying impacts a business’ bottom line

Teams define their bottom lines differently. For some organizations, a “bottom line” is a purely financial measure such as profit. For others, there is a wider definition. For example, some organizations’ “bottom line” has to do with how their work impacts people, the planet, and other ESG (Environmental, Social, and Governance) measures.

But regardless of how the bottom line is defined, bullying always has a detrimental impact. Because the engine of an organization is its people. The fuel of any team is workers’ energy, motivation, and dedication. A culture of intimidation created and maintained by bullying can poison the fuel.

The American Psychological Association estimates that bullying causes U.S. businesses to lose $300 billion each year through direct and indirect effects, such as lower productivity, absenteeism, turnover, and legal costs.

There are two main reasons this happens. First, bullying has a massive detrimental effect on people’s mental health and well-being, which then affects their ability to perform in the job.

Working in a toxic culture created by workplace bullies can lead to increased and sustained levels of stress and exacerbate existing mental and physical health challenges.The behavior of bullies, can lead to a deterioration in self-confidence and self-esteem, for the targeted. And bystanders and witnesses can also be affected.

Workers who have been bullied will spend a lot of energy waiting for the next act or will adjust their work so they can avoid bullies. Sometimes victims will deliberately waste time. Sometimes victims will spend a lot of effort trying to please a bully so that they can avoid being targeted, but this can backfire if the bully then misuses their allegiance.

When workers feel bullied, the quality of work decreases and productivity dives. The levels of engagement, creativity, and collaboration suffer. And a culture of workplace bullying can also have a negative impact on an employers’ reputation, sometimes at a global level. Finally, there are serious financial costs associated with bullying if a worker decides to sue the organization for being harmed.

Collectively, these are massive costs which inevitably affect a business’ bottom line. And yet, companies often tacitly accept or just ignore workplace bullying. So, by remaining silent, people reinforce a culty of bullying and allow perpetrators to continue.

What are the actions?

Workplace bullying occurs when there is a power imbalance. Bullying behaviors can vary from subtle acts, such as staring, to overt and aggressive acts, such as shouting.

The intensity and severity of bullying behaviors can have a greater impact than the frequency. Examples of bullying behaviors include ignoring the person, not giving them all the information they need to do their job, or demeaning them.

Some bullies will use business functions to gain power, such as by misusing the appraisal system and ensuring that goals are not achieved. They can also sabotage projects and blame others. Often these bullying behaviors are subtle—rarely will there be instances of overt negative actions such as shouting and screaming or being incredibly moody.

Collective bullying, often referred to as “mobbing,” can mean that the group has a plan to use one or more of the above behaviors to target the person. In some organizations, these groups hold the power and have done so for years.

Characteristics of workplace bullies

These behaviors are not limited to those who could be classified as Machiavellian or sociopathic. The person could be very insecure, competitive, jealous, or just falling in line with the current corporate culture. A bully may not know any better. Of course this can explain a bully’s actions, but it does not excuse them.

People who bully others can have a range of characteristics. They may find it difficult to admit fault, apologize, and change. They may deny using toxic behaviors and function outside social norms and organizational rules. Many workplace bullies are actually emotionally intelligent, charming, and convincing—but simply do not care about their impact on others.

It can be challenging for a workplace bully to change their ways unless the bully acknowledges the need to change. The first step is to help them acknowledge the problem.

Sometimes, people who are bullied lack the courage to speak up and may simply endure the situation due to limited options. Occasionally, they can become so used to being bullied that they may even seek it out. For example, I once knew a junior staff member who had been affected by many years of systematic bullying. They were asked why they had stayed. They said, “At least here I know what they are going to do.”

However, some victims and allies find the courage to address the issue—or they look for alternative employment.

How to address workplace bullying and rejuvenate the bottom line

The first step is to acknowledge that bullying and other toxic behaviors exist in your organization and that they have a very adverse effect. Until we say and admit that workplace bullying is present in our organizations, nothing will change. Bring forward your courage. Then others will find it easier to be brave.

Admitting it and saying publicly that it needs to stop must be a clear message from the leadership. If leaders are complicit in workplace bullying, then the board must address the matter.

Stay alert to instances of workplace bullying. Ensure that people have the freedom to talk openly about their experiences and consider offering anonymity if necessary. Look at your policies and procedures to make sure they are functional and are being used properly to address the negative behaviors. Then, plan for change.

Establish a culture of collective accountability where you praise positive behavior and address negative behavior with dignity and respect. Help the bullies admit, adapt, and change. Give them support and coaching. This will take time.

Provide support to those who have been targeted, helping them recover and feel safe enough to become effective once more. Tackle any residual bullying.

Expect people to behave with decency, dignity, and respect. Show it in your words and deeds. Explain why this matters to your team, to your business, and to your bottom line.

Anna Eliatamby is Director of Healthy Leadership, CIC and coauthor with Grazia Lomonte of Healing-Self Care for Leaders and their Teams, out now and available on Amazon.