Workplace discrimination refers to the unfair treatment of individuals based on specific characteristics. The disparity can occur during and after recruitment and during the firing process. Discrimination leads to several negative impacts on employers and employees.
In some cases, workplace discrimination negatively impacts employee physical and mental health. The effects include increases in blood pressure, headaches, stress, and depression. The latter often directly affects the body, with increased susceptibility to chronic stress, aches, and pains, and even risk of cardiovascular issues.
Discrimination at work also leads to economic costs for employers. The decline in mental and physical health among employees can lead to low input and productivity and increased requests for leave days and sick-offs. Each results in reduced revenue for the company. In some cases, low employee morale can lead to the loss of top talent, which affects output and competitiveness.
Moreover, discrimination in the workplace exposes the company to litigation and associated legal costs. The employer becomes liable for claims of discrimination. Although the penalties for non-compliance to set labor laws and anti-discrimination regulations vary, the consequences include fines, compensation and settlement, and sanctions.
Brand and reputation contribute significantly to a company’s success and, in some cases, survival. Some organizations will experience reputational hits that lead to product and service cancellations by consumers. It also affects lucrative engagements that may benefit the company, such as partnerships, investors, and grants.
Juan Carlos Benitez's Blog 