The Economics of a toxic workplace
by Dr. Jill Lopez
According to research from the Cornell Center for Veterinary Business and Entrepreneurship, workplace burnout is costing the veterinary industry two billion dollars a year- which is about 4% of the veterinary industry’s entire value.
Mental health issues have even gained the attention of the United States surgeon general Vivek Murthy, who has pointed out the dangers of toxic workplaces in a recent WSJ article where he said “Toxic workplaces are harmful to workers—to their mental health, and it turns out, to their physical health as well.” He added that unrelenting stress at work wears your body down, compromises your immune system and can lead to a cascade of ailments such as depression, heart disease and sleep deprivation.
What are signs of a toxic workplace?
- Bullying and Harassment. ...
- Apathy, Excuse-Making, Procrastination. ...
- Pessimism. ...
- Little or Poor Communication. ...
- Disorganization. ...
- Dictators. ...
- Workaholic Behavior. ...
- Unsafe or Unethical Business Practices.
According to the AVMA, 40% of veterinarians are considering leaving the profession and reasons they are is because of the lack of work-life balance and mental health challenges due to stress, anxiety, or depression
The Economic Cost of Burnout in Veterinary Medicine
The economic cost of burnout of veterinarians in the US market is between 1-2 billion annually in lost revenue. The researchers evaluated data from 5,786 associate veterinarians in private practice. They looked at their compensation, work hours and job turnover. Burnout was measured using the Professional Quality of Life Scale.
Causes of burnout includes excessive workloads, imbalance between job demand and skills, lack of autonomy, and prolonged work stress.
Burnout is higher with recent graduates, those with high veterinary educational debt, and women. It is more prevalent with associate veterinarians rather than practice owners.
The economic impact of burnout is measured via turnover rate. Turnover costs include recruiting, advertising, interviewing, and training replacements. The study also found that the median cost of turnover per veterinarian is about $104K.
Another study found that leadership matters.
Good organizational leadership reduced burnout and stress among staff.
The most important qualities of a leader including
1. Keeping people informed
2. Encouraging reports to suggest ideas for improvement
3. Providing feedback and coaching
4. Recognizing job performance.