Direct and indirect effects of workplace sexual harassment on the productivity of victims and witnesses: The preventive role of equitable management

This research demonstrates the impact of equitable management as a protective factor against workplace sexual harassment (WSH) and its consequences on labor productivity. It also shows that there are invisible costs for colleagues who witness WSH, through counterproductive behaviors, such as sabotage or production deviance, with an indirect decrease in labor productivity. We used a structured questionnaire that was answered by 827 women from 37 small, medium, and large private companies in the Lima Metropolitan Area, Peru. We designed a conceptual model and tested it using structural covariance equations. The results indicate that 33.5 % of women have been sexually harassed over the last 12 months, an average of 6.6 times, while 18.9 % of women have supported co-workers who were victims of WSH. Being sexually harassed at work decreases labor productivity by 43.1 % and increases the intention to desert the company by 15.2 %. Witnessing WSH increases the intention to drop out by 11.3 % and increases counterproductive behaviors by 39.6 %. We found that equitable management is a preventative factor for WSH. Equitable management not only decreases the probability of the occurrence of WSH by 2.2 times but also—if it exists—reduces its pernicious impact on productivity through various indirect effects. Equitable management can reduce the labor productivity costs caused by WSH by 4.6 times.