A thriving workplace is one where employees feel respected, valued, and motivated. A toxic workplace can be detrimental to both employee wellbeing and organizational success. Creating a positive workplace that promotes employee health and wellbeing fosters strong employee relationships and makes employee retention much easier. However, failing to actively spot conflicts or inconsistencies, even the best environments can turn toxic.
Preventing toxicity is not only about addressing issues when they arise but also nurturing a culture of respect, trust, and transparency from the ground up. The 2024 Randstad Employer Report suggests that a pleasant and enjoyable workplace is still a leading motivator for employees to continue working with their current employer. However, reality paints a different picture.
In a recent Harvard Business Review survey involving 2,600 American workers, 42 percent of respondents reported they were seriously considering quitting their jobs, with a toxic workplace culture being the third leading cause. Research has repeatedly shown that repetitive stress from workplace toxicity can even lead to physical health issues such as heart disease and cancer.
what is a toxic work environment?
How can you recognize that your workplace is becoming toxic? Toxic environments rife with negative behaviors such as bullying, harassment, and employees overburdened with work. Some telling warning signs include elevated levels of stress, anxiety, and burnout among your employees. Personality conflicts among employees, whether confrontational or passive-aggressive, can severely impact their ability to remain engaged and productive, ultimately breeding a toxic workplace.
the detrimental effects of a toxic workplace
Toxic workplaces can have a detrimental impact on businesses, affecting everything from customer service to product delivery. However, the HR department is often hit the hardest. This type of culture can lead to increased absenteeism and decreased employee retention. Apart from this, negativity at work can cause irreversible damage to aspects of your business, such as the below.
high employee turnover
High employee turnover signals a toxic work environment, stemming from physical or social factors. Investigating turnover metrics—whether pertaining to the whole company, specific divisions, or particular time periods, can reveal distinct issues, such as the following:
- toxic managers
- poor process implementation
- overwork due to staff shortages
- pay hikes that don’t align with employee expectations
Increased employee turnover brings in a host of new challenges, higher recruitment costs to declining employee morale and productivity.
low productivity
Gallup’s 2024 State of Global Workplace Report highlights that one in five employees report experiencing loneliness on a daily basis. A toxic workplace can increase stress levels, and spike absenteeism and disengagement at work. Eventually, productivity suffers as employees suffer par below their potential. A drop in productivity could be one of the first indicators of a toxic workplace.
negative employer brand
A toxic workplace will soon become common knowledge. The adverse impact of this negativity will manifest into poor employee reviews, eventually tarnishing your employer brand. What’s more? Attracting and retaining talent that fits your needs can become increasingly difficult. Ultimately, overlooking workplace toxicity and delaying action could result in compromised quality and stunted growth.
recognizing a toxic work environment
Engagement levels can differ between functions and departments, and workplace toxicity may vary accordingly. Employee surveys are crucial in detecting early warning signs and undesirable behaviors, allowing you to address issues before they escalate. Some notable indicators of workplace toxicity include:
bullying
At one time in our lives, we’ve all experienced a bully — someone who uses their strength, position or knowledge to make another feel inferior. Anyone can be a bully, although managers have the edge when it comes to workplace power. Your organization's bully could be an IT staff person who makes others feel ignorant about new technology or an administrative assistant who is overly controlling about setting up meetings. Bullies disrupt workplace productivity by causing discomfort to other employees and eroding their confidence.
harassment
Bullying directed at specific groups of people, based on gender, ethnicity, race, or religion, qualifies as harassment. If a workplace bully targets individuals from these groups, it constitutes a human rights violation with potential legal consequences. Workplace harassment diminishes inclusion, making it challenging to attract and retain diverse talent.
micromanagement
Micromanagement often correlates with higher turnover and absenteeism. Micro managed teams often feel under confident and frustrated with excessive oversight and work reviews. Supportive managers, on the other hand, empower their teams to work independently. They nurture teamwork and self-sufficiency. It’s crucial to look for cues such as missed deadlines or frequent update requests to identify strained team dynamics.
poor communication
If your feedback requests reap a lot of comments about a lack of communication between management and staff, there’s a toxic work environment breeding. Unresponsiveness of leadership is a common complaint among employees and adversity impacts employee trust. By ignoring survey results and suggestions, your company is, in effect, ignoring its employees. Eventually, they will search for another employer — one that considers their opinions.
lack of work-life balance
Contrary to popular belief, a busy worker doesn’t always equate to a happy one. A recent survey by the American Psychological Association found that 57 percent of the surveyed employees experience workplace burnout. The survey further notes that only one-third (35 percent) of the surveyed employees reported that their employer offers a culture where breaks are encouraged. Boasting about arriving early, staying late, skipping lunch breaks, and never taking time off indicates a lack of work-life balance, not an admirable work ethic.
cliques
Cliques, also known as in-groups, can be detrimental to teamwork. These groups may form around shared interests like departmental affiliations, employee classifications, or mutual lunch spots. However, when cliques become exclusive and leave others out, they create a toxic work environment.
lack of career advancement prospects
Another indicator of a toxic work environment is the lack of skill development and career advancement opportunities. Employees placed good training and career development needs third in the 2024 Randstad Employer Brand Research.
The term 'dead-end job' is widely recognized, and if it comes up in exit interviews or employee surveys, it's a clear indication that your company needs to focus on training and development programs to foster growth.
how to prevent a toxic work environment
Building a positive and engaging work environment goes beyond the support and commitment of leadership; it requires the active involvement of every team member. Explore these actionable strategies to foster a healthier, more dynamic workplace.
base policies on actions, not words
A zero-tolerance stance on bullying and harassment must be clearly stated in company policies, with steadfast support from management. While drafting these policies is easy, their consistent application can be challenging.
From day one of onboarding, employees should be clearly informed that bullying or harassment, regardless of the employee's status, is not tolerated. Infraction penalties should be implemented impartially, ranging from mandatory training sessions to severe actions like suspension or termination.
aim for diversity in your talent search
The 2024 Randstad Employer Brand Research found that about half of American workers identify themselves as part of a minority group, whether it be due to their gender, orientation, ethnicity, nationality, disability, or religion. Additionally, a diverse workplace is stronger and more resilient to workplace toxicity. Therefore, conduct organization-wide brainstorming sessions, involving leadership to strategize diversity goals based on your location demographics globally.
To foster diversity, ensure that your applications, job descriptions, and every element of your recruitment process encourage inclusiveness. Work with an HR solutions partner such as Randstad to refine your recruitment standards and talent strategy.
deliver exceptional onboarding experiences
Effective onboarding delivers on recruitment promises, establishing a solid foundation for the entire employee journey. However, a recent Gallup survey reveals a contrasting reality — only 12 percent of employees strongly agree their organization does a great job of onboarding new employees. What makes up a great onboarding experience? It includes a range of tasks, from sending a prompt welcome letter to seamless HR processing and IT setup. While some steps are universal, adapting specific elements to your organization’s operating model is crucial, especially while onboarding remote employees.
Assigning a mentor is an effective way to help new employees navigate everyday challenges, such as finding their way around or choosing a lunch spot. Pick positive, long-standing employees who reflect the company’s image and culture.
gather feedback
Preventing a toxic workplace is better than repairing one! By creating an efficient employee journey map, you can uncover and understand sentiments and perspectives at all stages: applying for a position, onboarding, career progression, and separation.
Employees who've experienced bullying or harassment may be unwilling to speak up. To ensure accountability, your organization should provide a confidential reporting mechanism where misconduct can be reported without fear of consequences. Implementing a 'safe channel' encourages employees to share their concerns openly.
If you’re not holding exit interviews, start now. This is even more essential when the resignations stem from a toxic work environment. An exit interview is one of the best ways to discover why employees are leaving and your last chance to leave a good brand impression.
Furthermore, assign a team member the task of tracking company reviews on public job sites. Both positive and negative comments can be helpful as you look for ways to improve working environments.
harness talent analytics
Maximize your employee intelligence by correlating the number of employees exiting your organization with their reasons for leaving. People analytics enables you to gain a deeper insight into workplace dynamics and discover employee preferences and toxic behaviors. In essence, people analytics provide a comprehensive view of the factors contributing to workplace toxicity. Some example causes could include the ones such as the below.
- if new employees are leaving, you might have a flawed onboarding process
- if you're losing long-term employees, they may feel undervalued or unsupported
- a loss of some of your more diverse employees may point to a problem with harassment or an exclusive work culture
- attrition among high-level employees may indicate lower-than-average salaries or a lack of promotion opportunities
Upon gathering data, consult with an expert to validate your interpretations and derive actionable insights to improve your workplace culture.
To summarize, our findings reveal that while a pleasant work environment is desirable, competitive pay and a balance between work and personal life remain the primary motivators for employees to choose your organization. By proactively addressing these core needs, you can boost productivity and job satisfaction, while reducing your recruitment and turnover costs significantly.