Stephen Dimmock and William C. Gerken
Harvard Business Review
Originally posted March 5, 2018
One bad apple, the saying goes, can ruin the bunch. So, too, with employees.
Our research on the contagiousness of employee fraud tells us that even your most honest employees become more likely to commit misconduct if they work alongside a dishonest individual. And while it would be nice to think that the honest employees would prompt the dishonest employees to better choices, that’s rarely the case.
Among co-workers, it appears easier to learn bad behavior than good.
For managers, it is important to realize that the costs of a problematic employee go beyond the direct effects of that employee’s actions — bad behaviors of one employee spill over into the behaviors of other employees through peer effects. By under-appreciating these spillover effects, a few malignant employees can infect an otherwise healthy corporate culture.
History — and current events — are littered with outbreaks of misconduct among co-workers: mortgage underwriters leading up to the financial crisis, stock brokers at boiler rooms such as Stratton Oakmont, and cross-selling by salespeople at Wells Fargo.
The information is here.