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