Research has shown that most bosses who create a hostile work environment end up hurting both their employees as well as the performance of the entire organization.  Surveys have found that a hostile work environment has had the following negative effects on workers and their performance:

• 30% of employees slowed down or purposely made errors, compared with 6% of those not reporting abuse.
• 33% of employees confessed to not putting in maximum effort, compared with 9% of those not abused.
• 29% of employees took sick time off even when not ill, compared with 4% of those not abused.

Lawsuits can also take a huge financial toll on an organization.  For example, a California jury recently awarded $168 million to a former employee of Mercy General Hospital after finding that she was subjected to sexual harassment and a hostile work environment by surgeons and other hospital staff.  Similarly, a New York jury awarded $25 million to a former ArcelorMittal employee who sued for being subjected to a racially hostile work environment.

Stanford Professor Robert Sutton and author of "The No Asshole Rule" wrote that the "estimated total cost of asshole for one year" is $160,000.  These costs include time spent by HR managers, executives, and employment lawyers dealing with the bad boss, the hostile work environment, and anger-management training and counseling.  

We believe that it is best for people to try to avoid hostile workplaces in the first place.  This is why it is so important for job seekers to research potential employers on sites like eBossWatch before accepting a job offer.