IWPR & TIME’S UP reveal ‘true cost’ of workplace sexual harassment

A new report has revealed the true financial costs of workplace sexual harassment for women.

The lifetime costs for survivors of sexual harassment in lower-earning service sector jobs totalled more than $125k and up to $1.3 million in lost wages, benefits and more for higher-earning jobs, confirmed the report released by the Institute for Women’s Policy Research (IWPR) and the TIME’S UP Foundation. The study entitled Paying Today and Tomorrow: Charting the Financial Costs of Workplace Sexual Harassment, found that workplace sexual harassment has large financial costs and economic consequences; and contributes to the gender wage gap and limits women’s earning potential.  

The first-ever report to monetise the lifetime financial costs of sexual harassment to individual women found that workplace sexual harassment costs individuals anywhere from $600 to $1.3 million or more over a lifetime; depending on the wages of the worker.  These costs can be seen through job loss and unemployment; lower earnings; missed opportunities for advancement; forced job changes; and loss of critical employer-sponsored benefits, like health insurance and pension contributions. The financial impact of workplace sexual harassment can be detrimental and long-lasting to those who experience it.

FINANCIAL & ECONOMIC COSTS

The short-term and long-term impact on the economic security of those working in low-wage jobs can be particularly severe. Workers in lower-income occupations and those impacted by historical racial and ethnic discrimination were more likely to be in economically precarious situations; without significant savings. A $600 wage loss can quickly translate into increased debts and credit card fees, eviction, homelessness and food insecurity, noted the report.

“As employers rethink their post-Covid workplaces, we need to ensure that work – whether it’s remote or in the office – is safe, dignified and equitable,” stated C Nicole Mason, PhD, President and CEO of IWPR. “This report shows the different ways sexual harassment imposes financial and economic costs to women workers.”

WORKPLACE SEXUAL HARASSMENT COSTS

“No person should ever choose between reporting sexual harassment or speaking up for themselves; while considering whether they might lose their ability to feed their families or take their children to the doctor,” added Jessica Forden of TIME’S UP Foundation. “When we think about the true cost of sexual harassment, we have to think about what’s at stake when women come forward; and how this impacts not just them, but everyone around them: their families, communities, and more.”

For every individual interviewed, the experiences of harassment were compounded; and the costs magnified. In fact, the report revealed that those who could have addressed the harassment (supervisors, human resources staff, colleagues) failed to act; with some even retaliating against the harassed employees. Additionally, few were able to seek legal advice due to their uncertain immigration status; lack of funds, or lack of information on their rights.

KEY FINDINGS

Based on in-depth interviews with victims of harassment, as well as experts, the report highlights the financial costs to individual workers; resulting from workplace sexual harassment and retaliation. Other key findings from the report include:

• The costs to economic security are particularly profound for workers in low-paid jobs.
• Lower earnings and lower job quality in many women-dominated service sector jobs does not always mean that the monetary costs of harassment are lower for those in these positions. In fact, for one fast-food worker forced out of her job, lifetime costs still totalled over $125,600.
• The lifetime costs of workplace sexual harassment and retaliation were particularly high for those pushed out of well-paid, men-dominated occupations; reaching $1.3 million for an apprentice in the construction trades.
• The cost of a single year out of work for another apprentice in construction; translates into a lifetime loss of $230,864; due to lost wage progression and foregone benefits.
• Forced career change may necessitate paying for new degrees or credentials. These costs came to almost $70,000 for one woman, reflecting direct tuition costs for a community college degree; plus lost earnings over two years as she pursued her new degree.

LACK OF ENFORCEMENT

The report suggests that culture change, company change, and governmental change are all needed for prevention and accountability. “It’s clear from our interviews that a lack of enforcement is a part of what’s missing,” stated IWPR report co-author Ariane Hegewisch. “Sexual harassment policies alone will not work unless there are consequences when they are broken.”

Click here to download a copy of the report.

Discrimination is still haunting the workplace; with women experiencing it at the same rate as people of colour, according to another new study. Click here to read more. The LGBT+ community is also experiencing ‘shocking levels’ of workplace discrimination and harassment. Click here to read more.