2018 GNYADA Membership Directory

HARASSMENT: THE DIZZYING COSTS FOR YOUR DEALERSHIP

Imagine what your company could do with an extra $100,000. You could upgrade your showroom, or hire two new full-time employees, or fund an advertising campaign, or buy dozens of new computers… or, you could spend that $100k settling a workplace harassment claim out of court. Harassment is unethical. Harassment is illegal. And for the organizations that allow it to occur, harassment is really, really expensive. Employers could lose $75,000 – $125,000 defending a case through summary judgment – and that is if the employer wins! Otherwise, the total typically ranges from $175,000 to $250,000 but may even surpass $150 million. Settlements, fines, legal fees, and turnover are only the costs we can calculate. Losses that can’t be calculated include high employee turnover, consumer boycotts, and smart, talented people who leave an industry—or decide not to enter it—as a consequence of harassment. The Direct Costs of Harassment At a glance: • In 2015, the EEOC secured $125.5 million for employees alleging harassment . • 76 harassment charges are filed with the EEOC daily . • For small and mid-sized companies, an estimated 19% of employment disputes result in defense and settlement costs, averaging $125,000 per claim . In addition to these statistics, the EEOC points out the“precious time, energy, and resources”organizations expend on handling harassment claims—whether or not they result in legal defense or a settlement. The fees associated with harassment should be sufficient motivation for any organization to take the problem seriously. The indirect costs of harassment, however, dwarf anything we can clearly calculate. The Indirect Costs of Harassment At a glance: • Employee turnover may represent the largest single component of the overall cost of sexual harassment. • Reports of harassment negatively affect consumers’ and clients’ perceptions of a brand. • Harassment frequently leads to job dissatisfaction and low productivity —not just for the people who experience it, but those who observe it happening to others. • Internal resolution of claims that do not result in legal fees takes an average of 275 days . • In 2012, the total cost of harassment settlements and awards surpassed $356 million .

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