It is not an exaggeration to say that workplace culture can make or break a business. When the culture is healthy, people will feel valued, motivated, and connected to the organisation’s purpose. When it isn’t, the effects can be far-reaching. A toxic culture not only damages morale; it often leads to high staff absence and turnover, reputational damage, and even legal issues.
So how does a business get rid of a toxic culture? The first step is understanding what it actually means, how it develops, and the risks it poses. From there, employers can take practical steps to turn things around and build a positive culture that supports both people and performance.
What is a Toxic Culture?
A toxic culture is essentially a workplace environment where negative behaviours dominate. In an article published by Forbes a toxic culture if characterised as, “one where employees don’t feel valued, respected, or supported”. Signs of a toxic culture might not always be obvious at first, but they can show up in a variety of ways:
- Constant gossip, cliques, or employees regularly blaming each other for issues
- A lack of trust between staff and leadership
- Bullying or discriminatory behaviour being ignored or excused
- High levels of stress, burnout, or absenteeism
- People leaving because they feel undervalued
In short, a toxic culture is one where employees feel under pressure, where they do not feel emotionally safe and where they are unable to thrive. Left unchecked, these behaviours and their consequences can become more deeply rooted and establish themselves as “the way things are done around here,” meaning that they are then much harder to shift.
How Does a Toxic Culture Start?
Toxic culture rarely happens overnight. Instead, it often develops gradually when poor practices go unchallenged. Some of the most common causes include:
- Weak or inconsistent leadership – when managers don’t set clear standards or lead by example, negative behaviours can take hold.
- Failure to tackle bad behaviour – overlooking bullying, harassment, or favouritism signals that such behaviour is tolerated.
- Lack of communication – poor transparency breeds rumours, mistrust, and disengagement, when there is little or no communication employees looking to create a toxic culture will take the opportunity to fill the void with their own negative narrative.
- Unrealistic expectations – when long hours and constant pressure are normalised, wellbeing takes a back seat.
- Neglecting inclusivity – if diversity and fairness aren’t prioritised, some employees may feel excluded or undervalued.
The key thing to note is that culture stems from the top. Leaders set the tone, and if that tone isn’t positive or consistent, toxicity can easily creep in.
The Risks of a Toxic Culture
For employers, the risks of ignoring a toxic culture are significant and can cause significant damage to a business. When a toxic culture exists staff turnover tends to be high. Unhappy employees will eventually vote with their feet, leaving the business to deal with a frequent cycle of recruitment and associated costs. Toxic environments often see employee motivation plummet and this leads to lower output and a drop in performance which can have a damaging effect on productivity and profitability.
The risks don’t just stop there. When employers ignore harassment, discrimination, or whistleblowing concerns they can end up facing employment tribunal claims which are time consuming and costly. In addition, employers who have a toxic culture face reputational damage from negative reviews on platforms like Glassdoor or other social media which can then make it harder to attract new talent and even harm customer perception. A prime example of such issues would be Brewdog who faced a backlash after a large number of former employees openly criticised the company and its culture. This lead to widespread media coverage and prompted their co-founder to publicly apologise. The final risk of a negative culture is high stress levels and burnout. This often manifests itself in the shape of high rates of employee absence and can even result in employees citing that a company is failing in its duty of care.
Simply put, a toxic culture costs businesses far more than they often realise.
How Can a Business Get Rid of a Toxic Culture?
The good news is that a toxic culture isn’t permanent. With commitment and consistency, employers can take steps to turn things around. Here are some key actions:
- Leadership sets the tone
Employees take their cues from managers and senior leaders. If leaders demonstrate fairness, respect, and accountability, it sends a clear message about what’s expected from everyone else and those who choose to behave in a different manner then tend to stick out like a sore thumb.
- Revisit your values and policies
Most organisations have policies on conduct, equality, and wellbeing. Such policies only make a difference though if they are consistently applied. Review your values and make it clear what being part of your business really means, update your policies, and ensure these things are more than just words on paper.
- Improve communication
A toxic culture typically feeds off silence. Encourage open communication, create safe ways for employees to raise concerns, and keep staff updated on key decisions. Transparency helps rebuild trust.
- Train and support managers
Managers are on the frontline of culture and need to live and breathe it. Invest in training to help them spot issues early, handle conflict appropriately, and support employee wellbeing.
- Actively deal with poor behaviour
If bullying or discrimination arises, deal with it quickly and fairly. Having a clear process for addressing grievances and disciplinary issues shows that poor behaviour won’t be tolerated.
- Encourage feedback — and act on it
Regular staff surveys, check-ins, or focus groups are vital for finding out what’s really happening on the ground. However, feedback is only valuable if employers act on it, make sure to follow through on feedback and even if actions can’t be taken for some reason then explain why, otherwise cynicism can deepen.
The Benefits of Building a Positive Culture
Addressing toxic culture should also come from a positive standpoint and look at how a positive culture can unlock numerous benefits for a company. When businesses invest in building a positive culture, they often see higher engagement and retention as employees are more likely to stay loyal when they feel respected and supported. Collaboration and innovation will also improve because people are more willing to share ideas and work with each other for the greater good of the business when trust is high as they know that if things don’t quite go to plan that they won’t be blamed and scapegoated. A supportive, progressive culture can create a stronger employer brand, when employees have a reputation as a good place to work and they become an employer of choice that makes recruitment much easier. Ultimately, a great culture can benefit a company’s bottom line with improved business performance from happy, engaged employees who deliver better results. In other words, a positive culture isn’t just good for people, it’s good for business.
Changing a toxic culture doesn’t happen overnight. It takes commitment from leadership, consistent action, and a willingness to listen and adapt. But the rewards are well worth the effort.
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Why not also check out last weeks blog An Employer’s Guide to DISCflow.
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