Cost Benefit Analysis

Financial Benefit

The financial benefits of our programs can be considered by first considering the cost to a facility of employees affected by these issues and comparing that to the cost of our programs.  The cost of IHC programs can be recovered by regained staff retention and productivity. The cost to a facility can be determined by the frequency in which an individual prepares for the “bullying” event or person before engaging them. This time is noted in decreased productivity or absenteeism.

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Hollis' Calculation Basis

Individual's wage multiplied by the average time spent would give the cost per staff member. Any discord, lateral violence, and bullying impact the target and individuals who witness it. Adding the cost from these individuals and adding them together will provide the institutional cost of these events. Hollis estimated that on an average 62% of employees are impacted. Hence for a large hospital system employing 3,200 nurses, 62% of nurses  impacted would result in an estimated cost of more than 17 million dollars annually in lost productivity and engagement.

Lost Productivity

From the example mentioned in the Calculation Basis, the facility’s 3,200 licensed nurses with a salary range of $47,000 to $136,000 would show an average rate of $91,500/ year or $43.99 per hour. Multiply this by the 3.9h average time spent preparing for a bullying occurrence. This organization would cost $171.56 per week or $8,921.12 per year. Now, multiply by 62% of the employees (1984), and the cost is $17,699,502.10 per year in lost productivity, disengagement, and absenteeism. Along with these, the goodwill lost is also considerable.