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The Multibillion Dollar Cost of Incivility: Insights and Solutions for a More Inclusive Workplace

By SHRM Editorial Staff

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In light of the rising economic tensions and increase in workplace diversity, the topic of civility has never been more essential. Incivility is a growing societal issue, with its negative—and costly—effects seeping into workplaces. The 2024 Q4 SHRM Civility Index reveals incivility results in a staggering collective daily loss of $2.7 billion for U.S. organizations, stemming from reduced productivity and increased absenteeism.

Incivility disrupts workflow and creates a hostile work environment that can affect employee morale and engagement. Employees subjected to rude or disrespectful behavior are likely to experience stress, anxiety and decreased job satisfaction, all causing a ripple effect throughout the organization.

Create More Inclusive Environments

In a powerful conversation on an episode of All Things Work, a content series that covers hot-button topic affecting HR and business each week, CEO of Inclusivv, Jenn Graham, shares practical solutions on how to foster a more inclusive and civilized work environment.

In the episode, Civility in the Workplace, Graham emphasizes the importance of psychological safety in diverse teams. By creating a space where employees feel safe to express their ideas and concerns freely, employers can facilitate an environment of trust and respect, encouraging meaningful discussion.

But how can organizations ensure communication is civil and constructive? Graham suggests this lies in the powerful combination of curiosity, empathy and nonviolent communication.

"When you're listening actively and with empathy and trying to find their passion and what they care about, that's where you can start to find common ground," says Graham.

The discussion goes on to unveil the critical role of peer-to-peer dialogue and inclusive conversations in driving behavior changes in the workplace.

The Role of HR Leaders in Driving Civility

Additionally, confronting uncivil acts is equally important. According to 2024 SHRM research on Managing Difficult and Political Conversations in the Workplace, 71 percent of U.S. workers reported having polarizing, political or controversial conversations at work. Of these, 45 percent reported that the conversation negatively impacted their productivity. It's up to HR leaders to encourage open communication while setting clear boundaries for acceptable behavior.

Civility's Continued Effects

The impact of civility and inclusion in the workplace goes far beyond just improving employee engagement and productivity. It also plays a role in employee loyalty. The research also states that organizations with a high rating of civility and psychological safety retain workers for nearly two years longer than others with low ratings. And these workers were more likely to be satisfied with their job, have greater trust with their coworkers and managers, and agree that their workplace supports innovation.

This article has been paid for by a third party. The views and opinions expressed are not those of Newsweek and are not an endorsement of the products, services or persons mentioned.

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