Insight

How You Treat People at Work Is a Business Decision

Two-thirds of employees experience workplace incivility every month. Here's what it's actually costing your organization — and what the research says leaders can do about it.

I've been in enough leadership teams to know what happens when someone on the executive team is consistently rude to the people below them. Nothing dramatic, usually. No blowup, no resignation letter on the table. Just a slow leak.

People stop bringing the hard thing up. They start pre-filtering what they say. They work around the person instead of with them. And everyone in the room who witnesses it, not just the person on the receiving end, starts pulling back too.

We've always talked about this as a culture problem. But it's actually a math problem.

What the research actually says

Georgetown professor Christine Porath spent 14 years and 14,000 people studying what incivility actually costs organizations. Here's what landed for me: 80% of employees who experienced or witnessed an act of incivility reported losing work time just worrying about it. Not dealing with it. Worrying. Sixty-three percent lost time actively avoiding the person. Sixty-six percent said their performance declined. This isn't morale. This is throughput.

And that's before we get to the creativity piece, which I think is the most underappreciated finding in all of this research. Porath and her colleagues ran experiments where participants were mildly belittled before a brainstorming task. They came up with 39% fewer ideas. In a separate study, people who merely witnessed a rude exchange performed 25% worse on cognitive tasks and generated 45% fewer ideas than the control group.

Just watching it happen costs you almost half your team's best thinking.

Why it gets worse than most leaders realize

Incivility eats cognitive bandwidth. When someone's brain is partially occupied processing "what did that mean" or "should I say something" or "is this going to happen again," there's less of the brain available for the actual work. It's not a character flaw in the employee. It's basic neuroscience.

SHRM's 2024 data puts the scale of this in context: two-thirds of U.S. workers say they've experienced or witnessed incivility at work in the past month. More than half in the past week. If you're running a team of 50, statistically some version of this is happening right now, and the productivity drain is happening with it.

The part that still surprises leaders when I share this: it's not just about the person being treated poorly. It ripples. Bystanders are affected. Team creativity drops. People start avoiding the person, which means information stops flowing the way it needs to. And after enough of this, the people who have options start using them. Twenty-six percent of workers in SHRM's data said they're likely to leave their job in the next year because of incivility they experienced or witnessed.

What this means for the CEO in the room

The question I ask executive teams isn't whether they have a civility problem. Most do, even when they think they don't. The question is whether they're treating it like the business problem it actually is.

Because the behavior that makes a team feel less safe is the same behavior that makes them less productive, less creative, and more likely to walk. Psychological safety on an executive team is already harder to build than most CEOs think, and incivility is the fastest way to lose what you've built. If you're a CEO reading this and thinking "we're pretty good on this," in my experience that's exactly when it's worth asking your team the same question.

So what do you actually do about it?

Porath's research is consistent on where to start: you address it when you see it. Her specific guidance for leaders confronting incivility in the moment is what she calls BIFF. Be brief, informative, friendly, and firm. Not a lecture, not a performance review conversation. A short, direct, respectful exchange that names what happened and what you expect instead. Most leaders either say nothing or say too much. BIFF is the middle path that actually works.

The second move is making civility visible when it shows up, not just policing it when it doesn't. When someone handles a hard conversation well, when a leader gives difficult feedback without damaging the person on the receiving end, when a team works through real disagreement and comes out stronger, name it. Your team is watching what you notice as much as what you punish.

The third piece is giving people a way to name the problem when it happens to them. Two-thirds of employees who experience incivility intentionally give less at work afterward, and in most cases the organization never knows it happened. That gap between what's happening and what reaches leadership closes only when people believe that saying something won't cost them more than staying quiet. That's a trust problem before it's a civility problem, which is why the fix has to start at the top.

Common Questions

How much does workplace incivility cost a company?

The costs show up across productivity, creativity, and retention simultaneously. Employees who experience incivility lose work time worrying and avoiding, deliberately decrease the quality of their work, and disengage from the organization. Christine Porath's research found incivility could cost a single large organization upwards of $12 million annually once lost productivity, turnover, and customer impact are factored in.

Does rudeness at work actually hurt performance?

Yes, measurably. Research by Porath and colleagues shows employees who experience even mild incivility perform significantly worse on cognitive and creative tasks, and the effect hits bystanders almost as hard as direct targets. In experiments, witnesses to a rude exchange performed 25% worse on cognitive tasks and generated 45% fewer ideas. Sixty-six percent of employees who experienced incivility reported a decline in performance.

How does incivility affect creativity and innovation?

This is one of the most striking findings in the research. Participants who were belittled before a brainstorming task generated 39% fewer creative ideas. Incivility consumes the cognitive resources creativity depends on. When part of the brain is processing interpersonal threat, less of it is available for the actual work of thinking.

Why do employees underperform on uncivil teams?

Because incivility competes for cognitive bandwidth. When part of the brain is occupied processing a slight, a cutting remark, or thinking about the person to avoid, there's less of it available for actual work. This happens involuntarily, which is why it affects even highly motivated employees who want to perform well.

How does incivility cause employee turnover?

SHRM's 2024 Civility Index found that 26% of U.S. workers said they were likely to leave their jobs due to incivility they experienced or witnessed. At an average cost of $4,683 per new hire per SHRM benchmarking data, that turnover risk is a direct financial exposure that rarely appears on a P&L until people are already walking out.

What can leaders do to address workplace incivility?

Porath's research points to three moves: address it immediately using BIFF (brief, informative, friendly, and firm) rather than waiting for a formal review cycle; make civility visible through recognition when people handle hard situations well; and create the conditions where people can safely name the problem when it happens. Policy and training programs alone don't move the needle. Leader behavior does.


Andy Hite is the founder of Scaling Minds and creator of the Six Shifts, a leadership operating system for executive teams at growing privately held companies. © Scaling Minds

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