Although toxic workplaces are common, there is no formal or universally accepted definition for them. According to the American Psychological Association, a toxic workplace is “an abstract term to describe infighting, intimidation, and other affronts that harm productivity.”¹ Research associated with the MIT Sloan School of Management and the Stern School of Business at New York University describes them as a work environment that lacks inclusivity, where workers feel disrespected, and where unethical behaviors, abusive managers and unhealthy competition may be present.²

Simply put a toxic workplace is a work environment where mean-spirited behavior is prevalent among employees.³ Mean-spirited behaviors (toxic workplace behaviors) abound. Examples include (but are not limited to) harmful gossip such as calumny and backbiting, condescending and humiliating remarks, non-inclusive behavior such as being ignored or excluded, unfair treatment or discrimination, disrespectful manners, playing games, annoying, manipulating, deceiving, taking advantage, backstabbing, gaslighting, hindrance, sabotaging, discord, infighting, rudeness, acrimony, hostility, not giving or stealing credit, abusing power, harassment, intimidation and bullying. Many other types of behaviors could be added to this list. In short, mean-spirited behaviors are the opposite of kindness. They include all incivilities that contrast with decency.

How big is the problem?

A national survey completed in April 2023 by the American Psychological Association reveals that 19% of employees believe that their workplace is “somewhat toxic” or “very toxic.”⁴ More than one in five of employees surveyed indicate experiencing harm to their mental health caused by their work environment, and more than one in five also report experiencing harassment in the past 12 months. Another survey completed in December 2022 by The Muse, a job search firm located in the United States, indicates that 64% of employees have experienced a toxic work environment in the past. Employees blame leaders (44%), direct managers (41%), coworkers (28%) and teams (16%) for toxic workplace environments.⁵ Toxic workplaces are a very big problem with severe implications.

What are the implications?

According to Mindy Shoss, professor of industrial and organizational psychology at the University of Central Florida, “toxic workplaces drain all the energy and excitement out of employees and replace it with fear.”⁶ Fear of showing up to work, fear of having to endure mean-spirited behaviors, etc. Toxic workplaces lead to departures, burnout, distress, anxiety and depression. Victims of toxic workplace behaviors either leave the organization, become disengaged (quiet quitting), or become unable to function productively. In a lot cases, employees end up on extended leave of absence. These effects result in low organizational productivity, high turnover, high costs, loss of corporate memory, poor business performance, and difficulty attracting and retaining top talent.

Research by the MIT Sloan School of Management and Stern School of Business reveals that a toxic workplace culture is by far the biggest predictor of employee turnover, followed by job insecurity and reorganization, job requirements for high levels of innovation, and failure to recognize employee performance (Figure 1). To assess the relative importance of the predictors, the research compares each predictor with compensation dissatisfaction as a baseline predictor of employee turnover. According to the research, “a toxic corporate culture is 10.4 times more powerful than compensation in predicting a company’s attrition [turnover] rate compared with its industry.”⁷

What are the signs to look for?

According to organizational development experts, “many people aren’t aware they’re part of a toxic work environment, especially if they’ve worked in that environment for a long time.”⁸ Executive leadership coach Lisa Quinn mentions that some of her clients “have struggled to identify their workplace as toxic because they just assume that such environments are normal and, over time, may even learn to navigate them well. Or they may feel that the issue is with them (…) because everyone else seems to be tolerating it. It can feel very lonely” says Quinn. A good awareness of the signs of a toxic workplace is essential for recognizing the problem (Table 1). Based on multiple sources of information, the following signs are most common:

What are the causes?

Toxic workplaces are caused by bad actors, along with unaware, complacent or complicit leaders. According to the MIT Sloan / NYU Stern research “more than 90% of North American CEOs and CFOs believe that improving their corporate culture would boost financial performance. Most of these  executives rank a healthy culture as one of the top three among all factors – including strategy, innovation, brand, patents, and others – in terms of its impact on results. More than 80% also acknowledge that their organization’s culture is not as healthy as it should be.”⁹ However, among the executives who say that their culture is not what it should be “nearly all agree that leadership fails to invest enough time upgrading corporate culture.”¹⁰ The research also concludes that the “lack of leadership investment is, by far, the most important obstacle to closing the gap between cultural aspirations [of healthy workplaces] and the current reality [of toxic workplaces].”¹¹

The findings of the MIT Sloan / NYU Stern research are consistent with other sources. According to experts from Lyra Health, a self-described leading provider of innovative mental health services and benefits, “while anyone can spread negativity at work, in most organizations toxic workplace culture starts at the top. When leaders bring negative attitudes to work or treat employees poorly, it can have ripple effects throughout the organization. That’s why it’s important to stay vigilant for signs of a toxic workplace and address them before too much damage is done.”¹²

What are the remedies?

Toxic workplaces are not an issue that individual employees can fix by ignoring the problem, adopting a positive attitude, and modifying their own behavior. These tactics only help employees buy their time until they leave for another job or retire. “Just as healthy fish can’t thrive in polluted water, even mentally healthy workers can’t thrive in an environment that is psychologically harmful” say Lyra Health experts.¹³ Toxic workplaces can be a difficult problem to deal with. Organizations should consult experts in the fields of organizational behavior and organizational development to develop a plan and coordinated approach for addressing toxic workplace behaviors. A combination of initiatives and actions are usually required, including the following:

• Survey employees – Survey employees to determine the extent of toxic workplace behaviors. Ask employees to identify causes. Include employees who have left the organization. Provide a safe environment for employees to complete surveys anonymously. Analyze the responses.

• Develop polices and codes of conduct – Develop and communicate policies and codes of conduct that outline unacceptable workplace behaviors. Clearly mention the consequences for unacceptable behaviors, including leave without pay, demotion and termination for cause.

• Hire the right people – Design interview methods and questions that test attitudes. Train interviewers to detect negative attitudes during interviews. Check references for character. Refer candidates to policies and codes of conduct as part of the hiring process. State in letters of offer that maintaining a positive workplace is a condition of employment.

• Provide mandatory training – Provide training to all executives, managers and staff on the policies and codes of conduct. Develop an awareness of toxic workplace behaviors, how to identify and report them, and the consequences for unacceptable behaviors.

• Lead by example – Remind senior executives and managers to set the right tone at the top. Ask them to communicate and actively demonstrate the values and ethics embedded in the policies and codes of conduct. Remember that actions speak louder than words.

• Evaluate performance – Design performance evaluations that incorporate feedback on workplace behaviors, in accordance with policies and codes of conduct. Use evaluation methods such as upward feedback and 360^o feedback where appropriate.

• Conduct exit interviews – Find out why employees are leaving. Specifically ask whether the workplace environment has contributed to their decision to leave and how it can be improved. Give former employees a safe place to provide feedback in total confidence.

• Investigate complaints – Implement a confidential process for current employees to make complaints about toxic workplace behaviors. Investigate the complaints. Accumulate evidence and testimonials. Keep complainants informed of the investigations and outcomes.

• Follow through with consequences – Discipline the perpetrators of toxic workplace behaviors. Measures include warnings, formal apologies and mandatory training. Leave without pay, demotion and termination for cause are options for bad actors and repeat offenders.

Conclusion

In an organization, everyone must be held accountable for their behaviors, actions and inactions. There are no exceptions and no excuses. Toxic workplaces are caused by mean-spirited behaviors that must be identified and constrained. Complacency makes toxic workplaces fester, and the lack of accountability and consequences compound the problem. Employees victim of toxic workplaces plan their exit and leave at the first opportunity. Others are unlikely to be productive if they stay. They may disengage or experience burnout, distress, anxiety and depression.

Employees may also retaliate by going public in social media platforms, and by taking legal action against their employer for failing to address toxic workplace behaviors. Employers are responsible for maintaining a safe and healthy working environment. Not being aware that a workplace is toxic is not much of a valid defense if you are responsible for it. Ignoring or downplaying the problem adds to the liability. Although toxic workplace behaviors may be difficult to prove in a court of law, employers can be liable if there is credible evidence brought forward. Employers known to have a toxic workplace may become severely challenged in their recruiting efforts.

__________________________

¹ Scott Sleek, Toxic workplaces leave employees sick, scared, and looking for an exit. How to combat unhealthy conditions, (American Psychological Association, July 13, 2023. www.apa.org/topics/healthy-workplaces/toxic-workplace).
² Donald Sull, Charles Sull, and Ben Zweig, “Toxic Culture is Driving the Great Resignation,” MIT Sloan Management Review (January 11, 2022); and Rachel Heston-Davis, Toxic Work Environment: How to Spot the Signs and Fix it, (Lyra Health, 07/26/2023).
³ Jeff Dutton, Toxic Work Environment, Legal Primer, Ontario, (Dutton Employment Law, March 22, 2023).
⁴ Scott Sleek, Toxic workplaces leave employees sick, scared, and looking for an exit.(…).
⁵ Traci Pedersen, How to Deal With a Toxic Work Environment, (Healthline.com, January 3, 2023).
⁶ Scott Sleek, Toxic workplaces leave employees sick, scared, and looking for an exit.(…).
⁷ Donald Sull, Charles Sull, and Ben Zweig, “Toxic Culture is Driving the Great Resignation,” (…).
⁸ Rachel Heston-Davis, Toxic Work Environment: How to Spot the Signs and Fix It, (Lyra Health, July 26, 2023).
⁹ Donald Sull and Charles Sull, “How to Fix a Toxic Culture,” MIT Sloan Management Review, (September 28, 2022).
¹⁰ Donald Sull and Charles Sull, “How to Fix a Toxic Culture,” MIT Sloan Management Review, (September 28, 2022).
¹¹ Donald Sull and Charles Sull, “How to Fix a Toxic Culture,” MIT Sloan Management Review, (September 28, 2022).
¹² Rachel Heston-Davis, Toxic Work Environment: How to Spot the Signs and Fix It, (Lyra Health, July 26, 2023).
¹³ Rachel Heston-Davis, Toxic Work Environment: How to Spot the Signs and Fix It, (Lyra Health, July 26, 2023).