Understanding Toxic Workplaces: How to Identify and Address a Toxic Work Environment

Toxic workplaces are more common than many organizations would like to admit, and their consequences can be significant. Research shows that nearly 1 in 5 employees leave their jobs due to toxic workplace culture, costing U.S. companies an estimated $223 billion over a five-year period. 

A toxic work environment doesn't just harm the employees who experience it — it can also damage a company’s bottom line, impacting productivity, increasing turnover, and damaging the overall culture. (Want to learn how to understand these true costs? Check out our HR Calculator Hub). 

But how do you know if your workplace is toxic? This blog will provide HR leaders with the tools to identify toxic workplace behaviors and create strategies to improve the health of their work environments. By addressing the root causes of toxicity, organizations can foster a workplace that empowers employees to thrive. 

What Is a Toxic Workplace? 

A toxic workplace is an environment where negative behaviors, attitudes, and practices are pervasive, creating a climate of distrust, hostility, or stress for employees. Toxic workplaces can manifest in various ways, from poor communication and micromanagement to bullying and discrimination. This toxic environment leads to higher levels of absenteeism, decreased productivity, increased mental health issues, and a decline in employee engagement. HR leaders need to understand what makes a workplace toxic to effectively recognize and address these issues. 

How to Tell if Your Workplace Is Toxic 

Identifying a toxic workplace isn't always straightforward, as some toxic behaviors can be subtle or even normalized within an organization. However, there are several signs that can indicate that your workplace may be toxic. 

#1 High Turnover Rate

One of the most obvious signs of a toxic workplace is a high turnover rate. Employees who do not feel valued, respected, or engaged are more likely to leave the organization in search of a healthier work environment. According to a Gallup report, 42% of employees who left their job voluntarily said their manager or organization could have done something to prevent them from leaving. Research from MIT Sloan Management Review reinforces this finding, revealing that a toxic workplace culture is 10.4 times more likely to drive employees to leave than issues related to compensation. 

#2 Frequent Absenteeism

When employees consistently take time off, it may be a sign of burnout or stress due to a toxic work environment. Chronic absenteeism often indicates underlying issues within the workplace culture. In fact, 71% of workers report calling in sick due to not wanting to see somebody they have a negative relationship with at work, according to Culture Shift. 

#3 Poor Communication

Lack of transparency, unclear expectations, or negative communication patterns between management and employees are strong indicators of a toxic environment. A study by Fierce, Inc. found that 86% of employees and executives cite lack of collaboration or ineffective communication for workplace failures.

#4 Lack of Recognition

Employees want to feel appreciated for their hard work, yet many workplaces fall short in providing meaningful recognition. Gallup reports that only 27% of employees feel they receive frequent recognition. This lack of recognition can result in feelings of resentment, disengagement, and a sense that their contributions do not matter. 

Additionally, without recognition, employees are also less likely to foster a positive culture or acknowledge their peers, often fueling workplace toxicity. In fact, research from Gallup found that 41% of unengaged employees want to change their workplace culture, with recognition as a top priority.

#5 Cliques and Exclusion

When teams form cliques or exclude others, it creates a divided workplace where some employees feel ostracized or unwelcomed. This kind of behavior can lead to low morale and conflict. In fact, according to a survey by the Workplace Bullying Institute, nearly one-third of Americans, or roughly 52.2 million individuals, are directly bullied in the workplace.

What Are Examples of Toxic Behavior in the Workplace? 

• Bullying or Harassment: This could include physical or verbal harassment, making an employee feel intimidated or belittled.
• Micromanagement: When managers exert excessive control over their teams, employees feel they are not trusted to do their jobs.
• Negative Gossip: Persistent gossip can create a toxic culture where employees feel insecure and disconnected from their peers.
• Punishing Mistakes Instead of Learning from Them: When mistakes are treated as failures, rather than learning opportunities, it stifles creativity and increases employee anxiety.
• Favoritism: Playing favorites or granting opportunities to specific employees over others based on personal preferences breeds resentment and decreases overall morale. 

Still unsure if your workplace is toxic? Take our quiz to find out!

How Can HR Fix a Toxic Work Environment? 

HR leaders play a crucial role within identifying, developing, and executing on strategies that can alleviate a toxic workplace culture. While addressing workplace toxicity is not a simple or quick process, it is necessary for cultivating a healthy and thriving culture. Here are several steps HR leaders can take to begin making positive changes: 

• Open the Lines of Communication: Transparency is key. HR should open channels of communication so employees feel heard and understood. Conduct anonymous surveys, hold regular meetings, and ensure leadership is accessible and receptive to feedback. 
• Establish Clear Policies: Create and enforce clear policies regarding unacceptable behavior, including bullying, harassment, and discrimination. Employees should be aware of the consequences of toxic behavior and trust that the company will address it. 
• Promote Employee Well-being: A focus on employee well-being, including mental health support, can go a long way toward combating toxicity. Offer wellness programs, counseling services, and ensure employees have access to resources that support their physical and mental health. 
• Recognize and Reward Positive Behavior: Encourage positive behavior through recognition and rewards. Celebrating accomplishments — both big and small — reinforces a culture of appreciation and reduces toxicity by showing employees that they are valued. 
• Train Managers to Lead by Example: Leadership plays a significant role in shaping the culture of an organization. Provide managers with training to ensure they are equipped to lead by example and create a supportive and inclusive work environment. 

Conclusion

The challenges and impact of a toxic workplace culture on employee well-being, productivity, and engagement, as well as the organization as a whole, cannot be understated. Addressing toxic behaviors is essential not only for the happiness of your employees but also for the overall health and success of your organization. By identifying the root causes of workplace toxicity and implementing strategies to foster a positive and inclusive culture, HR leaders can make a real difference in the lives of their employees. 

If you're unsure whether your workplace has toxic elements, take our Toxic Workplace Quiz to get a better understanding of the health of your work environment. Additionally, check out our Toxic Workplace video series for more insights and tips on fostering a positive workplace culture.