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 a large company, issues can get contained. In a small team, they spread fast and hit harder.

The relaxed, informal culture that makes small businesses attractive can also be their downfall. Everyone knows each other’s business, banter flows freely and boundaries blur.

What starts as harmless jokes can quickly tip over into something more serious:

• Excluding someone from conversations

• Comments about appearance, personal life or protected characteristics

• Criticism becoming personal instead of professional

• Unwanted touching, inappropriate jokes or repeated requests for dates

The problem? Most people don’t realise when they’ve crossed the line.

Why It Escalates Quickly

Many business owners ignore early warning signs because they don’t want to “make waves.” They tell themselves, “That’s just their personality.”

But in reality, here’s what happens in a small business:

• Productivity drops across the whole team, not just one person

• Good employees quietly start job-hunting

• Customer service suffers as staff get distracted or demoralised

• The person causing the problem often doesn’t know they’re causing one

• You end up dealing with it yourself because there’s no HR team to absorb it

By the time a formal complaint lands on your desk, or a resignation letter comes in, the damage is already done.

I’ve seen brilliant small businesses lose their best people because they didn’t take the early signs seriously.

Getting Clear on What’s Acceptable

The best way to stop things getting messy is to set expectations early. Not vague “be kind” statements, but practical, specific behaviours.

Think about what your best employees do that makes others feel comfortable and valued. For example:

• Speak respectfully to colleagues, customers, and suppliers

• No gossip about other staff members

• No inappropriate comments about appearance or personal life

• Raise concerns directly or with you when needed

• Include everyone in conversations and social activities

• Keep feedback professional and constructive

• Lend a hand when things get busy

Following Through

Writing these down isn’t enough – you need to use them.

• Share them with new starters.

• Talk about them in one-to-ones.

• Call out and praise the behaviours you want to see.

• Deal with problems privately and quickly, before they spread.

And remember: you set the tone. If you want respectful communication, you need to show it yourself.

Where to Start

This week, take 10 minutes to jot down the behaviours that make your workplace work well.

Ask yourself: What do I want a new starter to experience on their first day?

Next time you’re with your team, turn it into a conversation. Get their input. Position it as protecting the culture you’ve built together.

If you need help creating behaviour guidelines that actually work for your business, get in touch. Sometimes it takes an outside eye to spot the blind spots.