The Pitfalls of Profit Over People

I stumbled upon a few recent articles highlighting just how damaging a toxic work environment can be to employees’ health, wellbeing, and safety.

The first looked at the work culture at Big 4 consulting firm, EY. While most of these firms tend to promote cultures of long working hours due to their time-based billing systems – an independent report found that 11% of EY personnel were routinely working more than 61 hours a week and 33% reported regularly working over 51 hours per week.

Sure, professional consultancy firms often prioritise billable hours and profit growth above all else. However, I’m gobsmacked that in 2023, a prestigious organisation like EY has so many instances of harassment and prejudice that breeds a culture of silence, where people are too afraid to speak up so that poor governance goes unchecked for years.

The situation at EY got so severe the company had to bring in external advisors to review the culture and practices there. The reviewer found that a lack of psychological safety had prevented people from reporting these issues, highlighting the need for wide-scale reform.

Creating a Safe Work Environment

The second article I read was about Australian Agricultural Company (AACo) and an ‘alpha group’ of staff who regularly bully, intimate, and harass peers.

One gay contractor for the company was allegedly exposed to homophobic slurs and left to work on roofs for hours alone without communication. Meanwhile, another young worker was injured and left unable to walk for days after being pinned between a charging cow and a boulder.

Much like EY, AACo also created a toxic culture where people were reluctant to speak up, which led to physical and psychological injury.

However, the most tragic of these stories came from the Coroners Court of Victoria, which was fined the maximum $380,000 penalty for failing to protect staff from a toxic workplace culture that resulted in a woman’s suicide.

Despite management already on notice about the risk of a potential workplace suicide after a 2015 staff survey and receiving complaints from senior staff between 2016 and 2018 – employees were continually exposed to bullying, favouritism, verbal abuse, derogatory remarks, intimidation, and invasion of privacy.

Staff soon began taking stress leave, reporting feeling anxiety, stress, fear, and humiliation. Tragedy struck in September 2018, when in-house lawyer Jessica Wilby died by suicide after being diagnosed with a work-related major depressive disorder. A note found at the scene stated, “[An acting CEO] ruined me.”

Learning Through Open and Honest Communication

Each of these examples demonstrate gross mishandling of duty of care. Employers are legally obligated to support their workers and create an environment where they feel valued – otherwise it can have devastating consequences.

And the research backs up just how important it is for people to feel acknowledged, accepted, and understood in the workplace. A recent study from social research company McCrindle found that one in two Gen Z's and 45% of Gen Y are looking to receive praise at work at least a couple of times a week.

Meanwhile, Gen X and Baby Boomers don’t prefer it as regularly, with 28% and 17% looking for it a couple of times a week, respectively.

The study also showed that the proportion of Gen Z who want constructive feedback at least a couple of times a week (58%) was higher than the proportion who want praise (54%).

These numbers highlight just how much the younger generations value open and candid communication – whether for good or ill.

Some people may view this kind of ongoing validation as coddling talent, but it’s more about creating the type of culture and environment where people are constantly learning from their achievements and mistakes.

And this kind of openness can only emerge when people feel a sense of psychological safety where they’re able to discuss their goals, challenges, and ideas free from judgement or potential punishment.

Culture That Attracts and Retains Talent

It’s encouraging to see that younger generations are placing greater emphasis on their wellbeing and the importance of transparency in the workplace.

Creating a culture that fosters and supports psychological safety doesn’t just trickle from the top down. It’s a collaborative process that engages people throughout the organisation. Because safety comes from communication – through clear and consistent messaging alongside active listening.

Ongoing communication ensures business leaders can understand what their teams need to feel psychologically safe and supported at work – and it’s important to remember that these needs can change, which is why it’s crucial to regularly catch up, check in, and adapt accordingly.

That’s why I always encourage others to lead with empathy, to really take the time to reflect on our own behaviours and values while giving people the space and opportunity to share their experiences and concerns. It’s the best way to understand ourselves and those around us.

When people feel safe and valued, they’re more comfortable bringing their whole selves to work as the company’s culture and environment supports authenticity across all levels. This type of people-centric approach helps them feel more secure in their roles, freer to take risks and learn from their mistakes.

The archaic mentality of profit over all else is unsustainable as it can easily lead to burnout, turnover, or even more devastating consequences as outlined in those earlier examples. That’s why business leaders should be putting their people first, considering their teams’ needs and goals to drive better decision making and shape a culture that will ensure people stick around long term.