Revealed – the astonishing cost of fear and entropy on the UK economy

The Fear at Work Index reveals cultural entropy costs the UK economy an estimated £122 billion per year, equating to 5% of GDP. Cultural entropy, as defined by the Barrett Values Centre, is a measure of unproductive and fear-based leadership behaviours such as blame, bureaucracy, and mistrust, which divert critical resources and energy away from productive activities, hampering revenue growth and impacting employee engagement across various sectors.
Cultural entropy costs the UK economy an estimated £122 billion per year, equating to 5% of GDP.*
Cultural entropy, as defined by the Barrett Values Centre, is a measure of unproductive and fear-based leadership behaviours such as blame, bureaucracy, and mistrust, which divert critical resources and energy away from productive activities, hampering revenue growth and impacting employee engagement across various sectors.
The research carried out by Katharine Williams, Founder of Neema, reveals two distinct scales at work: the economic impact and the level of cultural entropy experienced.
While the healthcare sector leads in terms of wasted salaries due to workplace fear, the utilities sector experiences the highest levels of cultural entropy, indicating significant unproductive behaviours and fear-based practices are affecting employee engagement and organisational performance.
Top 15 Sectors by Cost of Workplace Fear
Sector
Cost of Entropy (£)
Healthcare
£36,792,000,000
Manufacturing
£17,333,700,000
Real Estate and Construction
£14,299,500
Financial services
£12,180,000,000
Retail
£10,834,100,000
Non-profit
£9,705,600,000
Technology
£6,540,750,000
Shipping & Logistics
£6,206,400,000
Advertising, Marketing and Media
£5,354,400,000
Tourism and Hospitality
£4,582,800,000
FMCG
£3,618,000,000
Insurance
£3,463,700,000
Legal
£2,730,600,000
Utilities
£1,465,200,000
Telecoms
£1,246,400,000
Top 15 Sectors by Level of Cultural Entropy
Sector
Cultural Entropy Level
Utilities
22%
Healthcare
21%
Financial services
20%
Advertising & Marketing and media
19%
Manufacturing
19%
Insurance
19%
Tourism and hospitality
19%
Telcos
19%
Non-profit
18%
Shipping & Logistics
18%
FMCG
18%
Legal
18%
Retail
17%
Tech
17%
Real estate and construction
16%
The study finds that although good leaders don’t intentionally foster fear-based cultures, many unwittingly do. Despite over 50% of UK organisations offering leadership development programmes, between 15% and 22% of all leadership behaviour remains fear-based.
This is because, like all humans, 90-95% of a leader’s thoughts and behaviours are driven by their subconscious processing—which is often fear-based and shaped by emotional triggers, habits, and learned responses. As a result, even highly experienced, well-intentioned leaders operate with fully deliberate, intentional thought only 5-10% of the time, making them susceptible to automatic responses that may not align with either their own or the company’s values.
Comments Katharine Williams, Founder of Neema: “I see this as positive news for CEOs. For those who have been left dissatisfied by the results of costly, time-intensive cultural interventions and leadership development programmes, there is a bright light at the end of the tunnel. Cultural Entropy costs will drastically reduce as leaders increase awareness of the subconscious patterns and habits that fuel fear-based leadership behaviours. As a coach, I use neuroscience-backed techniques, honed intuition, and rigorous diagnostics to help clients access and integrate what’s hidden in their subconscious.  Integrating the subconscious with the conscious makes the invisible, visible – and what you can see you can address. We call this ‘Integrated Leadership’.”

    Read more

    Latest News

    Read More

    Staff augmentation – the answer to the IT talent shortage

    10 January 2025

    Newsletter

    Receive the latest HR news and strategic content

    Please note, as per the GDPR Legislation, we need to ensure you are ‘Opted In’ to receive updates from ‘theHRDIRECTOR’. We will NEVER sell, rent, share or give away your data to third parties. We only use it to send information about our products and updates within the HR space To see our Privacy Policy – click here

    Latest HR Jobs

    University of Oxford – Nuffield Department of Primary Care Health SciencesSalary: £31,459 to £36,616. Grade 5 (with a discretionary range to £39,749 per annum)

    Heyne Tillett Steel is an award-winning structural and civil engineering practice with a reputation for intelligent design and innovative, practical solutions. Based in central London

    JOB TITLE: Hotel HR Manager – FTC 12 Months (Start: Early 2025) LOCATION: North West England SALARY: £45,000 per year performance-based bonus, rewards, and comprehensive

    Leeds Arts UniversitySalary: £39,370 to £43,002

    Read the latest digital issue of theHRDIRECTOR for FREE

    Read the latest digital issue of theHRDIRECTOR for FREE