The Teal Tree Company (3TC)
The Teal Tree Company (3TC)
Africa’s Foremost Gender Consulting Practice
Published Mar 24, 2025
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Sexual harassment in the workplace isn’t just a personal issue—it’s a silent disruptor that weakens organizational culture, drains financial resources, damages reputations and stifles productivity.
Several companies believe that as long as there’s a policy in place, they are protected. But the real cost of workplace harassment goes beyond legal liabilities—it impacts morale, retention, reputation, and the bottom line.
Many leaders underestimate its true cost, focusing only on legal risks while overlooking the financial, cultural, and productivity losses that come with inaction.
💰 The Financial Toll: A Costly Oversight and the Ripple Effect
Workplace harassment doesn’t just affect victims—it corrupts the work environment, impacting survivors, colleagues and the organization as a whole.
🔹 Impact On Individuals
- Financial loss – Victims of workplace harassment lose between $600,000 and $1.3 million over their lifetime due to lost wages, missed promotions, career shifts and loss of benefits. For low-income workers, even minor wage losses can lead to eviction or food insecurity.
- Mental Health & Well-being Impact – Unaddressed harassment creates stress, anxiety, and burnout, increasing absenteeism and healthcare costs.
🔹 Impact On Individuals (How Harassment Hurts Other Employees)
- Increased Stress & Fear – Employees who witness harassment or see leadership ignore it feel unsafe, anxious, and hesitant to speak up.
- Lower Productivity & Engagement – A culture of harassment leads to disengagement, absenteeism, and burnout, reducing team performance and innovation.
- Higher Turnover & Talent Drain – Top talent leaves, forcing others to take on extra workloads and weakening team cohesion,
- Damaged Workplace Relationships – Trust breaks down, making collaboration difficult and workplace tensions rise.
- Erosion of Company Loyalty & Reputation – Employees lose confidence in leadership, leading to poor employer reviews, lower job satisfaction, and difficulty attracting top talent.
🔹 Impact On Organizations:
- Legal and Settlement Expenses – Companies face lawsuits with settlements averaging $75,000–$125,000, while high-profile cases cost millions.
- High Turnover & Hiring Costs – 80% of women who experience harassment leave their jobs within two years, forcing companies to spend on recruitment and training.
- Reputational Damage – A publicized harassment case can deter top talent, investors, and customers, causing long-term brand erosion.
🚀 What Leaders Must Do to Build a Safe & Thriving Workplace
✅ Establish and Enforce Strong Policies – Clearly define unacceptable behaviours and consequences while ensuring policies are accessible and regularly updated.
✅ Train Employees & Leaders Effectively – Equip teams with the skills to recognize harassment, intervene as bystanders, and support victims.
✅ Foster a Culture of Respect – Leadership must model ethical behaviour and encourage open conversations on workplace expectations.
✅ Encourage Reporting Without Fear – Create safe, confidential channels for complaints with zero tolerance for retaliation.
✅ Hold Perpetrators Accountable – Enforce swift, fair consequences to send a strong message that harassment will not be tolerated.
✅ Conduct Regular Workplace Culture Audits – Use surveys and focus groups to identify risks and improve inclusivity.
📢 Accelerate Action Now for a Safer, Stronger Workplace
Workplace harassment is more than a compliance issue—it’s a direct threat to financial stability, employee well-being, and company longevity. Leaders who take proactive steps to eliminate harassment not only protect their organizations but create environments where talent thrives.
At Teal Tree, we are experts in workplace safety, reporting structures, harassment policy reviews, mediation, and investigations. We equip organizations with the right training, policies, and intervention strategies to foster a culture of accountability, respect, and zero tolerance for harassment.
✅ Need to review your policies?
✅ Looking to train your leaders and employees?
✅ Unsure how to handle workplace harassment cases effectively?
Reach out to us today at hello@tealtree.co and let’s help you build a safe, thriving, and legally compliant workplace.
