That psychopathy cost corporates in lost time, lost resources, stress leave, resignations of qualified and experienced people and unplanned leave is undisputed but what is the flow on effect to the community? How much of the cost does the community bear, what is its share of this burden?

For example, if a person resigns from their employment because of a psychopathic manager and needs to go on unemployment benefits, that is a direct cost to the community. If they also need counselling, treatment and medication that is a cost jointly borne by the person and the community but if they are unemployed it is mostly by the community.

If they need life coaching to get their life together and find a job, that is a cost borne by them but until they find full employment, their lack of productivity is a loss to the community in taxes not paid, superannuation not contributed, goods and services not purchased and normal family life disrupted.

What is the magnitude of the problem?

Mr Labour is not aware of any survey undertaken recently to measure this world wide phenomena but based on his 30 years of corporate experience, working with companies on executive coaching assignments and with life coaching clients who have been victims of psychopaths, he proposes the following estimates -

25% of all resignations are due to the effect of a corporate psychopath

50% of all stress leave are related to or caused directly or indirectly by a corporate psychopath

25% staff turnover rate is the norm for psychopathic managers

Each victim of a psychopath is out of pocket $10,000

The community is out of pocket to the tune of $5000 per victim

A person in a corporate environment who has been adversely affected by a psychopath and resigns will be out of pocket approximately $10,000 for the experience. This includes bills for mental health professionals, life coaching once they’re back on their feet, physical rehabilitation by joining a gym, the loss of salary/wages between their resignation and when they find a new job.

The community is also out of pocket to the tune of $5000 in unemployment benefits and medical expenses and non contribution to superannuation funds and taxes. There is an opportunity cost to the community of the amount invested in this person in terms of training and education. This is wasted for the length of time they’re out of the workforce.

If they don’t find a job in good time then the personal loss continues with catastrophic consequences as marriage breakdown, loss of house and loss of access to children. The personal cost from this is inestimable but it is the cost to the community that is immense in this event, helping to pick up the pieces.


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