What are the costs of discrimination?


            There are a wide range of costs associated with discrimination and harassment in the workplace. Some of these are easily quantifiable, while others are more qualitative in nature. However, the difficulty
in quantifying them exactly does not make them any less damaging to employers.

            Easily quantifiable costs are those associated with litigation. Increases in liability insurance premiums may also result, creating additional expenses.

            Costs that are less easily quantified can nonetheless be significant.

            Discrimination and harassment can lead to increased turnover, forcing more spending on recruiting and training. Gevity offers an on-line turnover cost calculator for employers.

            An employer known for discrimination and harassment may find it difficult to recruit, thereby potentially depriving the workplace of needed skills and viewpoints. Publicized discrimination and harassment may create difficulties for the employer in the marketplace and adversely affect stock prices. Decreased morale may occur, decreasing employee productivity. [http://answers.google.com/answers/threadview?id=591102] Sexual Harassment costs a typical Fortune 500 company $6.7 million per year in absenteeism, low productivity and employee turnover. http://www.prweb.com/releases/2006/02/prweb351574.htm 

            In addition to costs to the company, there are also costs to the individual. One study found that 50% of women who filed a Sexual Harassment complaint in California were fired; another 25% resigned due to stress associated with the process of filing the complaint. A study of Federal Employees reported that those who have been harassed lose $4.4 Million in Wages and 973,000 Hours of Unpaid Leave each year. People who experience harassment and discrimination may elect to be unemployed or underemployed to avoid such experiences, thereby decreasing their economic well-being. Lawsuits can be expensive for plaintiffs as well, and may result in little or no compensation. Emotional harm may also occur, leading to depression, anger, and/or anxiety. 90% to 95% of sexually harassed women suffer from some debilitating stress reaction, including anxiety, depression, headaches, sleep disorders, weight loss or gain, nausea, lowered self-esteem and sexual dysfunction. http://www.prweb.com/releases/2006/02/prweb351574.htm


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