Over a third of financial services employees impacted by toxic workplace culture

More than a third (36%) of those in the finance industry have been less engaged with their job due to the company having a poor workplace culture, according to new research from Culture Shift.

Related topics:  Finance News
Rozi Jones
13th January 2022
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"Over a third of those working in the finance industry across the UK have experienced negative behaviour at work, with 38% confirming toxic workplace culture has impacted their mental health."

The research reveals the true impact absenteeism and presenteeism is having on employees and businesses across the financial sector, with more than a third (35%) of workers saying their productivity has been impacted by toxic workplace culture.

In addition, close to a third (30%) have called in sick and 30% have taken time off due to an incident which happened at work, costing businesses billions of pounds through lost productivity.

Research from Deloitte and mental health charity, Mind, uncovered the UK’s presenteeism problem is considerable, costing employers between £26 billion and £29 billion annually.

The research also uncovered a quarter of those working in the finance industry would leave an organisation as soon as they could find a new job, if they experienced or witnessed bullying or harassment. 30% would encourage a colleague to seek legal advice if they knew they were experiencing toxic workplace behaviour.

The new nationwide study out today, also reveals that of those who have been impacted by problematic behaviour, such as bullying, harassment or discrimination at work, the average pay-out received was £381,350. While, on average, employees themselves are footing bills of £1,629 for things like therapy and legal fees.

For organisations hoping to secure investment, almost three quarters (71%) confirm they wouldn’t invest in a company that had a problematic workplace culture, while two thirds (64%) wouldn't invest in a company that has numerous NDAs with former employees.

The general reputation of a company and how it treats its employees are the two most important non-financial factors which investors take into consideration when deciding where to invest.

Gemma McCall, CEO, Culture Shift, said: “Our research reveals that over a third of those working in the finance industry across the UK have experienced negative behaviour at work, with 38% confirming toxic workplace culture has impacted their mental health. This is a concerning statistic and businesses need to address the issue before it’s too late.

“The real impact of toxic workplace culture shouldn’t be underestimated. Often, people presume that problematic behaviour only impacts those experiencing it, however our research shows otherwise.

“Employees who feel valued and appreciated at work are known to thrive, work better as a team and deliver stronger results. But, in contrast, those who are working in toxic environments are more likely to be impacted by absenteeism and presenteeism.

“It’s not just the cost of legal fees and pay outs which businesses need to be aware of, but having a toxic workplace culture directly impacts the bottom line through lost working hours, having to recruit new employees and paying temporary staff to cover long term sick leave.

“In addition, problematic workplace behaviour can impact an investor’s decision on whether or not to provide funding.

“From appealing to investors and a business’ profitability, to the cost of recruitment and legal action, there is only one way that businesses can avoid these added costs and that’s by looking after their people."

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