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Workplace incivility is spiraling as companies rile up employees with RTO and layoffs, and new research warns it's a $766 billion problem
Workplace incivility is spiraling as companies rile up employees with RTO and layoffs, and new research warns it's a $766 billion problem

Yahoo

time31-03-2025

  • Business
  • Yahoo

Workplace incivility is spiraling as companies rile up employees with RTO and layoffs, and new research warns it's a $766 billion problem

Shaming, gaslighting, and excessive micromanaging at work is making a comeback—and it's all thanks to unpopular policies like return-to-office (RTO) mandates and mass layoffs. Failure to act costs employers over $2.1 billion each day, or $766 billion annually. The American office is becoming a microcosm of toxicity due to unpopular internal policies like RTO and layoffs and external stressors like politics—with some workers acting out more than ever. Instances of workplace incivility—like shaming, gaslighting, and excessively micromanaging others—are up 21.5% in the first quarter of 2025, according to SHRM's Civility Index. And it's doing more damage than just hurting workers' mental health, it's carrying a hefty price tag for business owners. Due to reduced productivity and absenteeism, incivility costs employers over $2.1 billion each day—or $766 billion annually. 'Civility isn't just about how we interact. It's about how we succeed,' Johnny C. Taylor, Jr., president and CEO of SHRM, tells Fortune. 'The latest SHRM Civility Index shows we're making some progress, but incivility still takes a massive toll on our workplaces, costing businesses billions in lost productivity and disengagement.' Unpopular policies that companies are adopting to try to save money and enhance collaboration are only making matters worse. Employers with return-to-office mandates experience a 63% increase in incivility compared to those without; companies that initiate layoffs or mass terminations see a 67% rise in inappropriate behavior. Changes to workers' daily routines naturally bring stress and could be a cause for greater outbursts, said Derrick Scheetz, a researcher at SHRM. 'While they navigate this change together, these workers are also being exposed to more in-person interactions that will bring more encounters with and opportunities to act uncivil than virtual settings often offer,' Scheetz said. In the first quarter of 2025, over 208 million instances of office hostility occurred in American workplaces each day. Employers aren't solely to blame. Differences in political and social viewpoints are among the biggest drivers of workplace incivility, according to SHRM—and it's no wonder, considering the divisive nature of the 2024 election. In fact, nearly 3 in 4 employers report being in a low mood due to politics and current events, and roughly an equal number of workers desperately desire mental health resources to cope with global political turmoil. However, the behavior of managers can be make or break when it comes to supporting their employees during times of instability. 'People are upset, but it would have happened either way. And so the key for employers is to think, 'How do I navigate this?'' Jennifer Dulski, CEO of Rising Team, a workplace software company, previously told Fortune. Providing flexibility, lightening workloads, and resharing the available mental health services can be great strategies, but workers report that not enough is being done. Over 70% of workers said that incivility is going unchecked and that their supervisors could do more to prevent it. Taylor tells Fortune that change must start with showing empathy. 'This means leading with respect, listening to understand—not just to respond—and fostering inclusive cultures where differences drive innovation, not division,' he said. 'The bottom line? A more civil workplace isn't just good for people—it's good for business.' This story was originally featured on

HR leaders used to be obsessed with recruiting. Now they're trying to develop the talent they already have
HR leaders used to be obsessed with recruiting. Now they're trying to develop the talent they already have

Yahoo

time13-03-2025

  • Business
  • Yahoo

HR leaders used to be obsessed with recruiting. Now they're trying to develop the talent they already have

Good morning! If 2024 was all about discovering new talent, human resource leaders are using 2025 to focus on cultivating the employees they already have. Last year, the number one priority for top HR executives was recruiting, and figuring out ways to hire workers with in-demand skills like AI expertise, according to the 2025 State of the Workplace released by the Society of Human Resource Management (SHRM). But this year, recruiting fell to seventh place, showing that CHRO priorities are changing drastically in 2025. Instead, leadership and manager development took the top spot among focuses for HR professionals, according to separate study from SHRM, with 51% of CHROs saying it was their main concern. That was followed by organization design and change management at 30%, employee experience at 28%, talent management at 27% and learning and development at 24%. 'It's really about ensuring that the employees you have at your organization are working towards being productive, and that you can retain that talent,' says James Atkinson, VP of thought leadership at SHRM. 'We're seeing a focus from recruiting outside the organization to really building up and developing talent within the organization itself.' The new emphasis on existing employees comes as HR practitioners are forced to manage their organizations through particularly volatile times, according to Johnny C. Taylor, president and CEO of SHRM. 'As organizations continue to navigate talent shortages, economic fluctuations, and evolving workplace dynamics, HR leaders are shifting their focus to long-term workforce development and engagement strategies,' he says. When it comes to exactly what qualities HR leaders want to encourage among their managers, around 40% of CHROs who named leadership development as a top priority said they were interested in teaching softer skills, like the ability to inspire workers and manage conflict, the second study found. Out of companies that ranked employee experience as a top concern, 40% said they were focused on improving employee satisfaction, engagement, and productivity, as opposed to other issues like workplace culture (15%), and RTO strategy (5%). And overall, 59% of CHROs are planning to place more focus on employee well-being in 2025, according to the CHRO study. HR leaders have good reason to worry about their workers. Around 35% reported heavier workloads in 2024 due to unfilled roles, and 61% reported feelings of burnout, according to the state of the workplace study. 'There's going to be an emphasis on that human-centered leadership in 2025,' says Atkinson. 'Leaders need to be equipped to lead change, but also equipped to engage with their employees as well.' Brit This story was originally featured on

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