Addressing Misconduct Protects Your People and Your Bottom Line

In small organizations, trust often runs deep. But when sensitive issues arise, those same close ties can make it harder to speak up or take action objectively. And in any organization, internal dynamics can complicate how it responds. Relationships, reputations, and reporting lines can influence decisions, even when everyone is trying to do the right thing.

That’s where Faro Point comes in. We help organizations respond with fairness, clarity, and speed; before problems escalate.

We believe that how an organization handles misconduct is one of the clearest reflections of its leadership, values, and long-term resilience. When handled poorly, conduct issues lead to costly turnover, eroded trust, and legal exposure. When handled well, they build a culture of fairness, accountability, and performance.

The Business Case for Addressing Misconduct

Unaddressed misconduct doesn’t fade—it festers. And the costs are more than cultural.

  • Lost productivity: $20 billion is lost annually by U.S. businesses due to unresolved misconduct—driven by turnover, absenteeism, and disengagement. (Gallup/HR Dive)

  • Team disruption: Team performance drops 40% within six months when misconduct goes unaddressed. (MIT Sloan Management Review)

  • High cost of toxicity: Toxic employees cost 3x more than high performers contribute. (Harvard Business School)

  • Reputational and legal risk: Companies with unresolved culture risks are 3.5x more likely to face public scandals or regulatory investigations. (PwC/Ethisphere)

  • Financial liability: The average employment lawsuit costs $200,000—even before trial. (Hiscox/SHRM)

  • Manager burnout: Managers cite people issues as a top reason for burnout and exit. (Gallup/HBR)

  • Resource strain: HR teams spend up to 30% of their time managing conduct concerns. (SHRM)

What We Hear from Clients

When issues arise, leaders often say:

“We weren’t sure who to call.”
“We didn’t want to escalate, but we knew we couldn’t ignore it.”
“We needed someone neutral who could move quickly.”
“We had no process and suddenly we needed one.”

What’s at Stake

When a high performer at a midsize firm raised concerns about a peer’s bullying behavior, leadership hesitated. Within three months, two top team members left, morale plummeted, and a legal complaint followed.

The cost? Over $250,000 in lost talent, productivity, and legal fees.

Situations like this are avoidable—with the right response, the right people, and a trusted process.

Ready to Act?

Facing a complex employee issue—or just want to be prepared for one?
Let’s talk about how Faro Point can help you respond with confidence and care.