The Protected Disclosures (Protection of Whistleblowers) Act 2022 significantly enhances protections for whistleblowers in New Zealand, particularly in the critical areas of health, safety, and bullying at the workplace.
In this Act, serious wrongdoing includes any act, omission, or course of conduct in (or by) any organisation that is a serious risk to the health or safety of any individual.
External whistleblowing services play an essential role in these contexts, offering an independent avenue for employees to voice concerns without fear of reprisal. This is crucial, as evidenced by recent studies highlighting the staggering costs associated with workplace bullying and harassment.
According to a comprehensive report by KPMG New Zealand, the economic impact of workplace bullying and harassment on New Zealand employers was estimated at approximately $1.34 billion over a twelve-month period from June 2021 to June 2022. This figure underscores the substantial financial implications that workplace misconduct can have, not only affecting the well-being of employees but also impacting employer productivity and financial health.
The breakdown of costs related to bullying and harassment includes increased absenteeism, decreased employee productivity (presenteeism), higher turnover rates, and extensive time spent on internal procedures to address complaints. Specifically, absenteeism due to workplace harassment costs employers up to $415 million annually, while presenteeism can reach as high as $1.12 billion. These numbers are a stark reminder of the hidden financial burdens that organisations carry when they fail to address toxic workplace behaviors effectively.
Implementing an external whistleblowing service aligns with the requirements of the Protected Disclosures Act by providing a secure and confidential channel for reporting misconduct. This service not only ensures compliance with legal mandates but also supports a culture of transparency and safety. By encouraging employees to report issues without fear, organisations can more quickly address and mitigate the impacts of workplace bullying and harassment.
Moreover, external whistleblowing services contribute to the creation of a healthier workplace environment. They provide impartiality in handling complaints, which helps to ensure fair treatment and thorough investigation of all allegations. This impartiality is vital for maintaining trust in the whistleblowing process and can significantly reduce the likelihood of unresolved conflicts escalating into more severe financial and reputational damage for organisations.
The economic and social imperatives for establishing robust external whistleblowing mechanisms are clear. Employers must take proactive steps to support these services, thereby safeguarding employee well-being and enhancing organisational resilience. We encourage all stakeholders to get in touch to discuss our whistleblower service offerings.
Whistleblowers 