What is counterproductive work behavior & how to fix it?

There are several workplaces where you might notice an employee who misses a deadline or takes extra breaks which drains team morale indirectly. Or maybe it’s one who gossips or spreads negativity. Worse scenario—someone who steals company resources or harasses colleagues.

Now, multiply that one employee across an entire organization. The damage is staggering! According to research, companies lose $50 billion+ annually due to employee theft alone—just one form of counterproductive work behavior.

Additionally, workplace bullying and aggression result in employees considering quitting, leading to skyrocketing turnover costs. Yet, most businesses fail to recognize the warning signs before it’s too late.

The worst part? counterproductive work behavior doesn’t just come from “bad employees”—even high-performing workers can engage in it in toxic environments. The good news? CWB is preventable. If you want to stop workplace toxicity before it ruins your organization, keep reading.

Summarise this post with:

What is Counterproductive Work Behavior (CWB)?

Counterproductive Work Behavior (CWB) is any voluntary action by an employee that harms an organization or the people within it. 

Imagine a workplace where some employees are disengaged, and deadlines are ignored. Additionally, some people are constantly late, while others manipulate reports. This is what counterproductive work behavior is exactly. 

In simple terms, it is a silent disruptor that most organizations fail to recognize until it’s too late. You may not notice it at first, but over time, these behaviors erode workplace productivity and profitability. 

You must note that counterproductive work behavior is not always obvious. This is because some behaviors are covert (e.g., doing the bare minimum), while others are destructive (e.g., verbal abuse, theft).

The hidden cost of CWB: Shocking facts & statistics

Unfortunately, many businesses only notice CWBs impact when it’s too late, like when top talent resigns, when there is a high customer churn rate, or when legal trouble knocks at the door. But by then, the damage would have been already done.

Productivity & performance take a major hit.

Employees engaging in production deviances like intentionally working slower, taking frequent breaks, or doing the bare minimum results in a loss of productivity for the company. 

A hit on productivity can lead to deadline violations, which can hamper the company’s growth and performance. It basically creates a domino effect on company performance.

Imagine this on a large scale; it gives you a vision of what kind of losses will occur. A study by Gallup already indicated that low employee engagement can cost the global economy almost $8.9 trillion annually, which is a huge number. 

Morale crashes, leading to a toxic workplace

Nothing kills motivation faster than seeing coworkers get away with bad behavior. When employees notice favoritism or rule-breaking, that’s where frustration starts building. 

This leads to a situation where loyal employees start to lose motivation and eventually, a toxic culture starts building up. Additionally, it directly impacts the team collaboration. A Harvard study found that toxic situations in the workplace lead to increased absenteeism by 37%.

Hard to retain good employees

High performers don’t tolerate workplace negativity for long. When they observe unethical behavior, they leave. It has been found that 48% of employees consider quitting when they experience workplace aggression. 

If CWB is ignored, the company loses its best employees while toxic behaviors remain unchecked.

Customers start to notice (and they leave)

When counterproductive work behavior occurs in an organization, say, due to loss of productivity and increased toxicity, customer service also suffers. PwC noted that a bad customer experience drives 73% of consumers to switch brands. 

If CWB is hiding in your workplace, you can expect negative reviews, customer churn, and long-term brand damage with poor customer service.

Legal & compliance issues

Certain types of counterproductive work behavior, like harassment, discrimination, or ethical violations done by employees, can land companies in serious legal trouble. Additionally, it can damage your organization’s reputation as well. 

Interestingly, in 2022, a Fortune 500 company paid over $10 million in workplace harassment settlements. This incident not only harmed the organization financially but also ruptured its reputation. 

Even if a company wins a legal battle, the damage is irreversible due to expensive lawsuits, negative media coverage & PR damages. It also indirectly puts a question mark on employee trust and brand credibility.

Types of counterproductive work behavior

Researchers categorize counterproductive work behavior into different types based on who or what is affected. Let’s break them down.

Production deviance: When employees intentionally work less

Production deviance happens when employees intentionally lower productivity. For example, working slower than usual (even when capable of working faster). 

Employees engaging in production deviance may not seem like a big problem initially, but it adds up over time. Studies show that intentional slow work reduces team productivity by up to 30%. 

Workplace aggression: The toxic side of CWB

Workplace aggression includes hostile or harmful behaviors directed at colleagues or even customers. This type of counterproductive work behavior creates a toxic work environment where people feel unsafe. Some of the examples of workplace aggression include,

• Verbal abuse (insulting, yelling, or belittling coworkers).
• Threats or intimidation (physically or psychologically).
• Spreading harmful rumors about colleagues.
• Sabotaging a coworker’s work (deleting files, giving wrong information).

Recent studies have found that companies with toxic cultures have around 3x higher turnover rates. Bottom line? If aggression isn’t controlled, it can destroy workplace morale and lead to mass resignation. 

Property deviance: When employees steal or damage company resources

Property deviance refers to stealing or misusing company assets. For example, employees stealing office supplies. 

Other than this, filing fake expense claims to get reimbursed for personal expenses or leaking sensitive company data for personal gain also comes under property deviance.

Sabotage: When employees intentionally harm the organization

Some employees sabotage, intentionally harming the company’s operations and financial standing. They tend to destroy important company data or files and sometimes give false information to customers to damage the company’s image.

This is crucial since a single insider attack can cause millions in financial damage. Companies need strong security policies to prevent intentional sabotage by employees who possess counterproductive work behavior.

The psychology behind CWB: Why do employees act this way?

Most employees don’t start a job thinking, “I’m going to be unproductive or steal from the company.” But over time, certain workplace conditions push them toward Counterproductive Work Behavior. 

Think about it—would an engaged and happy employee intentionally miss deadlines or steal company property? Research shows that employees don’t engage in counterproductive work behavior for no reason.

Some studies indicate that employees with high job dissatisfaction are 3X more likely to engage in CWB. Similarly, workplaces with toxic leadership and favoritism see a 40% increase in workplace aggression. 

In most cases, counterproductive work behavior is triggered due to workplace stress, unfair treatment, lack of recognition, or personal tendencies like impulsivity and emotional instability. 

Some employees withdraw from responsibilities (absenteeism, slow work), while others lash out through aggression or sabotage.

It’s very important to understand these psychological and workplace factors to prevent CWB before it spirals out of control. 

Let’s explore proven strategies to fix and prevent CWB effectively in the next section.

How to fix CWB? (Step-by-step solutions)

Counterproductive Work Behavior (CWB) is a deep-rooted issue that impacts workplace culture. CWB can become a recurring issue if businesses don’t take proactive measures. The solution isn’t quick-fix disciplinary actions, instead, it requires a structured approach that addresses root causes. 

Step 1: Pinpoint the triggers & patterns of CWB

Before taking action, businesses must identify why counterproductive work behavior is happening in the first place. Without a clear diagnosis, any solution will only be temporary. 

Try to document and maintain records of specific incidents and behaviors. Also, use anonymous employee feedback surveys to identify hidden workplace issues that might fuel CWB issues.

HR teams should broadly participate in uncovering root causes by assessing patterns of absenteeism and aggression. 

For example, suppose multiple employees in a department engage in frequent tardiness. In that case, a deeper analysis might reveal that they are demotivated due to poor management or lack of work-life balance.

Step 2: Address the underlying causes 

Try to check for workplace frustrations, like whether employees are overworked, underpaid, or feeling undervalued. Poor management is sometimes one of the biggest drivers of workplace aggression. 

If employees deliberately miss deadlines, the issue might be burnout or lack of role clarity rather than laziness. Instead of punishing them, companies should restructure workloads and provide better task distribution.

Step 3: Implement a corrective & fair disciplinary system

When employees continue engaging in harmful behaviors despite preventive measures, organizations must take structured action. Every employee should know which behaviors are unacceptable and what the consequences are.

Always begin with verbal warnings, followed by written warnings. You can try performance improvement plans (PIPs), and if it doesn’t work in the end, proceed with termination.

Always encourage self-correction first. For example, if an employee continuously disrupts meetings with aggressive comments, rather than immediately terminating them, they can be enrolled in conflict resolution training and given a chance to improve.

But repeated offenses leave no choice but to terminate. 

Step 4: Strengthen workplace engagement & positive reinforcement

CWB thrives in disengaged workplaces. When employees feel disconnected from company goals or don’t see rewards for good behavior, they are more likely to engage in counterproductive work behavior. 

Try to recognize and reward positive behavior. Employees who display ethical, productive behavior should be publicly acknowledged and rewarded. 

Additionally, provide them with clear career paths, mentorship, and development programs to motivate employees to perform well. It has been observed in modern workplaces that implementing peer recognition programs results in lower workplace aggression and disengagement.

Step 5: Provide conflict resolution & psychological support

Workplace conflicts and unmanaged stress often fuel CWB. Addressing these issues proactively can prevent future negative behaviors.

The first thing to be done is to implement Employee Assistance Programs (EAPs). This can help employees cope with challenges. 

Most importantly, train managers to resolve conflicts fairly since poor conflict management can escalate minor issues into full-blown workplace aggression.

Don’t forget the mental well-being initiatives! Studies show that workplaces with strong mental health support systems see a 40% reduction in CWB. 

Additional step: Prevent CWB before it starts

While fixing CWB is crucial, preventing it at the hiring stage is even better. Many counterproductive behaviors stem from personality traits and ethical tendencies that can be identified before hiring. 

Testlify, a leading AI-powered pre-employment assessment platform, helps businesses screen candidates for emotional intelligence and workplace behavior. This can reduce the risk of hiring individuals prone to workplace aggression or unethical conduct.

Recommended tests to minimize CWB risks:

• Personality test – This test helps you Identify traits linked to dishonesty or impulsivity.
• Emotional intelligence test – This test assesses stress management and teamwork abilities.
• Situational Judgment Test (SJT) – This test evaluates decision-making and workplace behavior.

Proactive hiring with Testlify ensures you build a productive and ethical workforce—right from day one.

Final thoughts

Businesses should consider counterproductive work behavior an opportunity to identify weaknesses and refine workplace strategies. 

The reality is that CWB exists in most workplaces. But the difference between high-performing and struggling companies is how they handle it.

Organizations that ignore counterproductive work behavior face declining productivity and toxic work environments. On the other hand, companies that proactively address and prevent CWB create workplaces where employees feel valued and motivated.

The best way to prevent counterproductive work behavior is to create an environment where employees don’t feel the need to engage in it. 

The choice is simple: Fix CWB before it fixes your company. Take action today and build a workplace where ethics and employee well-being thrive.