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OFFICIAL PUBLICATION OF THE WEST VIRGINIA AUTOMOBILE DEALERS ASSOCIATION

2025 Pub. 6 Issue 1

Workplace Violence and the Risk to Dealerships

The effects of workplace violence are profound, including physical and emotional suffering, destroyed careers and harm to companies and communities. And it comes at a staggering economic price. Although estimates differ, researchers have put the cost of workplace violence at as much as $56 billion annually — and that figure is likely significantly low. 

No industry is free of violence, but the problem is particularly prevalent in the retail sector. With incidents ranging from verbal abuse to physical assaults, it can have a serious impact on employees, customers and the retailer’s reputation. 

A poll conducted by Liberty Mutual showed that, on average, for every $1 invested in improving workplace safety, approximately $3, or more, is saved. Yet, according to the OSHA, only 30% of businesses currently have formal safety and health programs in place. Given the considerable number of individuals in today’s workforce, this percentage is concerning and highlights the need for improvement. 

Employers who prioritize safety not only protect their employees but also foster a more productive and engaged workforce. Organizations should take violence prevention and overall safety seriously. Initiative-taking measures are essential to ensuring both the well-being of employees and the long-term success of the company.

In a workplace environment, such as a dealership, employees regularly interact with individuals who have diverse personalities and working styles. Under the pressure of meeting goals and deadlines, conflicts can naturally arise. If employees lack the skills to manage these conflicts effectively, situations can escalate into workplace violence. Additionally, employees in retail operations often encounter abusive customers, which may range from verbally abusive to in rare cases, physical harm. While active shooter incidents in workplaces are statistically rare, they are a serious and sadly growing threat. Being prepared is crucial. 

Potential Risks and Costs To Employees

When workplace violence occurs, it can bring an organization’s operations to an immediate halt. Employees are often left in shock by the disruption and chaos, unsure whether to intervene or prioritize their own safety. If the violence results in injury, medical insurance claims are likely to follow, and in more severe cases, legal action may be pursued. According to the National Safety Council, the average cost for one small business to mitigate one incident of workplace violence can escalate as high as $1.3 million and does not address any impact on work productivity. 

Steps That Dealerships Can Take to Control Workplace Violence

Managers and owners must recognize the critical importance of ensuring a safe and secure workplace. Every employee has the right to feel protected and confident in their work environment. 

Consider this: Every year in America, more than 2 million workers become victims of workplace violence, and according to a survey from the Society of Human Resource Management (SHRM), 1 in 7 workers feel unsafe at work. 

The steps to forming a workplace safety program include: 

  1. Background Checks: It is essential to ensure that those who represent your company are a good fit and uphold the organization’s values. Implementing a comprehensive screening process is a proactive measure that can play a critical role in maintaining a safe and secure environment for all employees.
  2. Have Clear Violence Prevention Policies in Place: Establish clear policies and procedures specifically designed to address and prevent violent behavior. Well-defined rules create structure and accountability within an organization. Most companies adopt a zero-tolerance approach to violence, making it clear that any form of physical altercation or inappropriate conduct will result in immediate termination and may lead to further legal action. It is essential that all employees are fully informed of these policies and understand the consequences of violating them. 
  3. Training: Provide regular training for all employees. It is crucial that staff are equipped with the knowledge to recognize and respond to potential threats. Employees should be trained to identify early warning signs of escalating behavior, including verbal aggression, noticeable changes in body language, social withdrawal and signs of agitation. In addition, organizations should have a clearly defined emergency response plan in place, outlining procedures for where to go and what actions to take if violence occurs. Supervisors and managers should receive specialized training on conflict resolution and de-escalation techniques to help defuse potentially violent situations before they escalate.
  4. Offer Employee Assistant Programs: Offer Employee Assistance Programs (EAPs). Acts of workplace violence often stem from underlying personal or professional stressors that build up over time. By providing support services such as counseling, therapy and stress management resources, organizations can help employees address their concerns in a healthy and constructive manner. Offering access to EAPs demonstrates a company’s commitment to employee well-being and can be a cost-effective strategy for reducing the risk of workplace violence.
  5. Create a Positive Work Culture: Foster a welcoming environment that promotes respect, inclusivity and open communication. Establishing an open-door policy encourages employees to voice their concerns and report issues without fear of retaliation. Additionally, employees should feel confident that any reports or concerns they bring forward will be managed confidentially and addressed appropriately. The well-known phrase, “If you see something, say something,” should be actively promoted within the organization to create a culture of vigilance and shared responsibility for workplace safety. 
  6. Employee Recognition: Implement recognition and reward programs that encourage employees to actively contribute to a safe work environment. Acknowledging and praising employees for consistently upholding safety standards, following policies and procedures and promoting a culture of respect reinforces positive behaviors. Recognitions can be as simple as verbal appreciation or more formal, such as the “Safety Employee of the Month” award for outstanding commitment to workplace safety. Incentive programs not only boost morale but also foster a shared sense of responsibility among staff to maintain a secure and supportive environment.

Sadly, with so much at stake, too many companies are not ready — but preparedness can make all the difference. While threats may be unavoidable, preparedness offers a much more positive outlook. Not only can it help protect employees and company assets from harm, but statistics show that the cost of prevention is 100 times less than the cost of managing the aftermath of a tragedy. 

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