Shaming, gaslighting, and excessive micromanagement in the workplace are witnessing a resurgence, largely attributed to unpopular policies such as return-to-office (RTO) mandates and mass layoffs. These issues result in significant financial losses for employers, totaling over $2.1 billion each day, or $766 billion annually.
The American workplace is increasingly becoming a microcosm of toxicity due to internal policies like RTO and layoffs, coupled with external stressors such as political tensions, leading to heightened misconduct among employees. According to SHRM’s Civility Index, incidents of workplace incivility, including shaming, gaslighting, and excessive micromanagement, have risen by 21.5% in the first quarter of 2025.
Beyond negatively impacting workers’ mental health, this incivility costs businesses substantially, primarily due to decreased productivity and increased absenteeism. “Civility isn’t just about how we interact; it’s about how we succeed,” stated Johnny C. Taylor, Jr., president and CEO of SHRM, emphasizing the financial burden resulting from lost productivity and disengagement.
RTO policies and layoffs are exacerbating workplace challenges, with companies mandating RTO experiencing a 63% increase in incivility compared to those without such policies. Similarly, companies conducting layoffs face a 67% increase in inappropriate behavior. Derek Scheetz, a researcher at SHRM, suggests that changes in workers’ daily routines might lead to increased stress and consequent behavioral issues, with over 208 million instances of workplace hostility reported in the first quarter of 2025.
Political and social differences intensify workplace division, contributing significantly to incivility. The divisive 2024 election exacerbated this issue, with nearly three-quarters of employers and an equal number of workers expressing a need for mental health resources to navigate global political turmoil.
The actions of managers are crucial in supporting employees during unstable times, noted Jennifer Dulski, CEO of Rising Team, who emphasized the need for flexible work environments and mental health resources. Despite these strategies, over 70% of workers reported that incivility goes unchecked and that supervisors could do more to prevent it.
Johnny C. Taylor, Jr. highlighted that fostering empathy and inclusive work cultures where differences inspire innovation rather than division is essential. A civil workplace benefits both individuals and businesses, he remarked. This report initially appeared on Fortune.com.
