Why bullying and harassment hits small businesses harder and what to do about it
Workplace problems in small businesses don’t stay small for long.
In small businesses, these problems hit harder and spread faster than in larger companies.
The relaxed atmosphere that makes small businesses great can also be their downfall. Everyone knows each other’s business, banter flows freely and boundaries get blurry.
What starts as harmless jokes can quickly become something more sinister:
- Someone gets excluded from conversations
- Comments about appearance, personal life or protected characteristics become the norm
- Criticism gets personal instead of professional
- Unwanted touching, inappropriate jokes or persistent requests for dates
The worst part is that most people don’t even realise they’ve crossed a line.
Why it gets out of hand quickly
I’ve seen business owners ignore the early signs because they don’t want to make waves. “It’s just their personality” they tell themselves.
But here’s what actually happens in small businesses:
- Productivity drops across the whole team (not just one department)
- Good people start looking elsewhere (and you can’t afford to lose anyone)
- Customer service suffers because staff are distracted or unhappy
- The person causing the issue often has no idea there’s even a problem
- You end up dealing with it personally instead of having HR handle it
By the time you’re dealing with a formal complaint or someone hands in their notice, it’s too late.
I’ve watched brilliant small businesses lose their best people because they didn’t see the warning signs early enough.
Getting clear on what’s acceptable
Write down 5-10 specific examples of how you want people to treat each other. Not vague statements about “being nice,” but specific behaviours.
Think about the behaviours you see in your best employees. What do they do that makes everyone else feel comfortable and valued?
- Speaking respectfully to everyone, whether they’re colleagues, customers or suppliers
- No gossip about other staff members
- No inappropriate comments about appearance, relationships or personal characteristics
- Raising concerns with you when direct conversation isn’t appropriate
- Including everyone in conversations and social activities
- Keeping feedback professional and constructive
- Supporting each other during busy periods
Actually following through
Once you’ve got your list, you need to actually use it. Talk about these when someone new starts.
Bring them up during quiet moments or when you’re doing one-to-ones.
When you see the behaviour you want, acknowledge it. When something feels off, address it quickly and privately.
Don’t let things fester.
You need to show what you want to see. If you want respectful communication, make sure you’re communicating respectfully.
Where to start
This week, spend 10 minutes jotting down the behaviours that make your workplace function well. What do you want new starters to experience when they join?
Then bring it up next time you get a chance to speak with your staff. Make it a conversation, not a lecture.
Ask for their input. Frame it as protecting something valuable you’ve all built together.
If you want help with creating behaviour guidelines that actually work for your specific business, get in touch.
Sometimes it helps to have someone from outside look at your workplace dynamics and help you to spot the blind spots.