The term “toxic” has become a buzzword in recent years, often used to describe relationships, behaviors and even organizations. While we may feel a visceral reaction to the phrase “toxic workplace,” understanding what leads to the creation of this type of environment is central in ensuring that our companies are on a path toward a healthy, thriving future.
Let’s explore the definition from the APA [1]:
Toxic Workplace: An abstract term to describe infighting, intimidation and other affronts that harm productivity; these workplaces drain the energy and excitement out of employees and replace it with fear.
When people experience this negativity, it leads to higher turnover rates, increased burnout and reduced morale [2], which also affect a business’s earnings. It’s important that leaders have concrete examples of what to look out for so they can cultivate a positive atmosphere. From our work in partnering with organizations to build vibrant cultures, we’ve identified eight warning signs to be aware of.
8 Common Causes of a Toxic Culture
#1 Misaligned values and priorities
Do leadership actions connect to the company’s vision? What do different staff members have to say about the organization’s objectives? For example, if a business promotes exceptional customer service and executives want their teams to spend less time with customers, employees may feel confused about how they should go about their work. Surveying personnel [4] and analyzing departmental goals can help reveal opportunities to create greater alignment.
#2 Unreasonable expectations
When individuals are consistently asked to take on excessive workloads, meet unrealistic deadlines or operate under significant pressure, exhaustion is inevitable. If burnout is frequent, leaders can expect higher rates of disengagement, quiet quitting [5]and productivity drops. Communicate with staff and middle managers to understand their sentiments about expectations and resource allocation.
#3 “Yes” cultures
Creativity and participation are usually suppressed in environments where staff members feel they have to agree with supervisors or avoid voicing concerns. When cognitive diversity is welcomed, research [6] shows innovation increases by about 20%. Consider some of your recent projects and brainstorming sessions. Did employees speak up with alternative concepts and share hesitations, or is groupthink the norm?
#4 Preferential treatment
If certain individuals or teams experience favoritism, it will lower morale across the workforce. This behavior may show up when executives and managers assign promotions, projects or growth opportunities. Assess your workplace by reviewing data on training attendance, career advancement and performance reviews to uncover any transparent decision-making processes and ensure equal opportunities for growth and recognition.
#5 Short-term mindsets
Companies that consistently focus on immediate gains over long-term planning not only create an unhealthy setting; they may also risk the longevity of their business. Evaluate your climate by reviewing the investments of time and money in near-term priorities compared with long-term ones like employee development, research, digital transformation and product improvement.
#6 Distrust
Productivity is often affected when colleagues and managers don’t allow their team members autonomy. Distrust typically lies at the root of these challenges. Consider the relationships between direct reports, supervisors and departments. Are personnel invited to share ideas and make decisions? Do colleagues regularly seek one another’s expertise?
#7 Communication silos
When workers operate in isolation, inefficiency and frustration are more likely to occur, and the impact is astounding as poor communication costs companies $12,506 USD per team member per year! [7] Silos may also lead to missed opportunities and stagnation. Analyze your business’s communication channels and challenges. A great place to start is asking staff about how well-informed they feel.
#8 Fear of making mistakes
Missteps are usually met with judgment and potentially negative consequences in a toxic environment. If mistakes are viewed with harsh criticism instead of constructive feedback, individuals may hesitate to take initiative or innovate. Evaluate your culture by assessing internal tolerance for errors as well as the workforce’s appreciation for growth mindsets [8].
Recognizing the signs of an unhealthy workplace is an important first step in building a psychologically safe climate [9] where employees and the business can succeed. The next step is to identify your path to improvement. To start transforming your organization, I invite you to download our latest guide: 8 Essentials of a Healthy Work Culture. [10]
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With these insights, you will be well on your way to creating an ecosystem that engages your people and grows the bottom line.
Discover how Emergenetics can energize your work culture. Explore our website [11] or fill out the form below to speak with one of our team members!