What if I told you that businesses that lead with respect could collectively save up to $2 billion per day? SHRM estimates that this is the staggering daily cost of workplace incivility (disrespect), and leaders can no longer afford to overlook the toxic impacts: lower morale, collaboration and profits.
In today’s fast-paced business world, many companies focus intensely on their bottom line but overlook a critical truth: Disrespectful workplace culture and toxic leadership quietly erode profitability, innovation and brand loyalty. This can cause catastrophic consequences, as I’ve seen firsthand from my years as CEO of Syms.
To feel respected, you must feel regarded, seen and acknowledged. Being respectful can be a learned behavior. Bullying is the opposite of respect. Breaking the habits of bullying is problematic but possible.
In my 30s, I stepped into the family business my father built, known for its slogan: “An educated consumer is our best customer.” I became president and then CEO a few years later, and from day one, I knew our competitive advantage wasn’t just price. It was people.
You can’t run a company with thousands of employees and millions of customers without realizing one core truth: If people don’t feel respected, they stop showing up fully – or stop showing up at all. Back then, we didn’t use the term “culture” the way we do now. But I understood early on that culture is the invisible hand shaping every decision, every sale, every act of service. And when that culture becomes toxic? The damage is silent, compounding and deeply expensive. It’s no longer just anecdotal. The data is undeniable.
When employees feel undervalued or disrespected, productivity drops and turnover skyrockets. Globally, Gallup estimates that disengagement drains up to $8.8 trillion from the economy each year.
Disrespect doesn’t just hurt performance, it drives people away. And replacing talent is expensive. According to SHRM, turnover costs range from 50% to 200% of an employee’s annual salary. For middle- and senior-tier positions, that cost is tough to recover.
What’s more, disrespect often goes unchallenged until it spirals into systemic breakdowns. The truth is that one disrespectful comment can undermine months of hard work. In my time as a CEO and leader, I learned firsthand the importance of values like accountability, fairness and transparency not only for customers and clients but for employees, supervisors and coworkers. These aren’t just moral choices; they’re economic imperatives. I learned that from my father, who built the company not just to grow, but to last.
When I led Syms through public offerings and acquisitions, the same principles applied: Treat people with dignity, and they’ll bring their whole selves to the table. Undermine them, and they’ll quietly start exiting, mentally or physically. Poor culture doesn’t just affect output – it damages well-being. Workers experiencing disrespect are more prone to stress, burnout, absenteeism and costly presenteeism, where people show up but underperform. Heard of the new trend, “quiet cracking”? That’s another symptom of disrespect.
So what can leaders do?
Leadership is not about hierarchy; it’s about example. If a CEO doesn’t listen, why should a middle manager? If respect doesn’t flow from the top, it won’t exist at the front lines. And yet, I don’t believe in shame or finger-pointing. Most poor culture isn’t malicious – it’s neglected. Leaders are busy. Investors are impatient. But ignoring culture is like skipping oil changes because the engine still runs. Eventually, things seize up.
It starts with a mindset shift. We must view respect not as a soft skill, but as a strategic tool. Culture is a business asset, just like your product or supply chain. Measure it. Invest in it. Protect it.
First, measure and diagnose. Use engagement surveys and identify hotspots of disengagement. Second, model respect. That includes you, CEO! Third, invest in soft skills training: listening, empathy and conflict resolution. Teach your employees how to treat each other. We always had a list of the “10 Rules for Customer Service” at every Syms store, and it never failed us. Fourth, address disrespect immediately; one incident can cost more than a missed deal. Be kind and compassionate, but firm and swift to address when you see this happen. Fifth, support employee well-being through flexible policies and mental health investment. Finally, link cultural metrics to key business outcomes so respect is more than rhetoric, it’s measured and managed like any other figure.
The costs of disrespect and poor culture are tangible, measurable and growing. From disengagement and spiraling health costs to higher turnover and reputational damage, the fallout is systemic and preventable. Companies that commit to leading with respect will see healthier workforces, stronger brands and sustainable financial returns. In the end, leading with respect isn’t optional; it’s strategic.
Opinions expressed by SmartBrief contributors are their own.
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