Workplace Incivility: Why Your ‘Tough Culture’ is Killing Your Profits
Several years ago, a Fortune 500 tech company proudly described itself as having a “tough” culture, where blunt communication was prized. Performance was strong, so the executive team initially dismissed complaints about rude behavior. But these small acts of disrespect—eye rolls, interruptions, curt emails—were slowly poisoning the work environment.
Employee engagement plummeted, innovation stalled, and turnover among top performers climbed to 30% above the industry average. Customer complaints rose 34% as internal culture affected service. An estimated $20 million in productivity losses were linked to disengagement and conflict. As the former CTO explained, “We thought we were just being direct and results-focused. We didn’t realize we were creating a toxic environment that was killing our business from the inside.”
Like the executives in this example, some leaders might discount reports of incivility, rudeness, and disrespect—saying employees are too sensitive. But left unaddressed, these behaviors erode profits. According to a SHRM analysis, incivility costs U.S. employers roughly $2 billion a day in reduced productivity and absenteeism. Another report puts the annual cost of incivility at $14,000 per employee.
