How Organisations Can Avoid Creating A Toxic Environment At Work

The concept of a toxic work environment has become increasingly relevant. Characterized by negative behaviors such as harassment, unreasonable workloads, and unspoken hostility, toxic workplaces can severely impact employee well-being and organizational success.

Research shows that employees in these environments can be up to 10% less productive, with turnover rates 50% higher than in healthier settings.

The consequences are evident: a survey by the American Psychological Association revealed that 41% of employees experience negative health effects from workplace stress, leading to burnout and disengagement.

High-profile examples, such as Uber's struggles with a hostile culture and Google’s emphasis on psychological safety, highlight the critical need for organizations to address these issues.

To combat toxicity, companies must recognize early warning signs—like low morale and excessive workloads—and implement strategies that promote a positive workplace culture.

Organizations can enhance productivity and create environments where employees thrive by prioritizing employee well-being and fostering collaboration. This article will explore the root causes of toxic work environments, identify early signs, and provide actionable strategies for creating healthier workplaces.

Understanding toxic environment at work

According to the American Psychological Association, “Toxic workplace is an abstract term to describe infighting, intimidation, and other affronts that harm productivity. Mindy Shoss, PhD, a professor and industrial-organizational psychologist at the University of Central Florida, sums up a toxic workplace with a single sentence: ‘Toxic workplaces drain all the energy and excitement out of employees and replace it with fear.”

One can say harmful behaviors, ineffective systems, or negative attitudes within an organization define it. These elements combine to create a workplace atmosphere that hinders productivity and damages the well-being of employees. 

A toxic work environment arises when the company culture, management practices, or interpersonal dynamics create an atmosphere that harms employees’ mental and physical well-being. The toxicity can arise from two reasons:

1. Organizational causes of toxicity

The roots of a toxic work environment often lie within the organizational structure itself. Companies that prioritize profits over people, fail to establish clear communication channels, or allow poor management practices to continue unchecked can inadvertently create conditions ripe for toxicity. 

For example, a lack of transparency from leadership can leave employees feeling out of the loop and uncertain about their roles, leading to frustration and disengagement. Similarly, organizations that encourage cutthroat competition rather than employee collaboration can foster resentment and hostility.

2. Everyday manifestations of toxicity

Toxicity can be both overt and subtle. While some toxic behaviors are easy to spot, like harassment or bullying, others may be more insidious, such as passive-aggressive communication or favoritism. 

Microaggressions - small, everyday actions or comments that may be unintentionally hostile or discriminatory—are another toxicity that can erode the workplace atmosphere over time.

Employees subjected to these behaviors often experience feelings of isolation, stress, and dissatisfaction, all of which contribute to a toxic culture.

When a workplace becomes toxic, employees may feel that they are constantly under scrutiny or need to compete against their colleagues in unhealthy ways.

This atmosphere can stifle creativity, discourage teamwork, and lead to burnout. Let’s look at the statistical study of the toxic environment at work and its impact on employees and businesses.

Here’s a statistical framework for studying toxic workplace environments:

-> The APA survey indicates that nearly 19% of workers describe their workplace as somewhat or very toxic. This highlights a significant portion of the workforce affected by negative work environments.

-> The same study revealed that over 22% of employees reported experiencing harm to their mental health at work. This includes stress, anxiety, and other mental health challenges due to workplace conditions.

-> It also revealed, that approximately 22% of respondents experienced harassment in the past year, showcasing a persistent issue contributing to toxicity.

-> As the MIT Sloan Management Review highlights, a toxic workplace drives attrition.

-> It revealed that toxic corporate culture is the strongest indicator of employee turnover, ten times more predictive than compensation.

The damaging effects of toxicity in the workplace highlighted in the statistical study show the importance of recognizing these behaviors and taking action to address them before they spiral out of control.

Warning signs of a toxic work environment

Identifying a toxic work environment is crucial for employee well-being and retention. According to MIT Sloan Management Review, leading contributors to toxic work cultures include:

  • Failure to promote equity, diversity, and inclusion (EDI)
  • Workers feeling disrespected
  • Unethical behavior

Here are key warning signs to watch for:

1. Lack of respect and support

Employees often feel disrespected in toxic cultures, which can manifest as dismissive communication, lack of recognition, or undermining behaviors. A culture where workers do not feel valued leads to increased turnover, as employees seek environments where they are appreciated and supported.

For example, Wells Fargo has been criticized for conducting sham interviews with diverse candidates to meet DEI quotas. This practice not only disrespects the candidates but also reflects a toxic culture where employees feel their time is wasted and their contributions are undervalued.

2. Poor diversity, equity, and inclusion (DEI) practices

A failure to promote DEI can create an unwelcoming atmosphere for many employees. When individuals feel excluded or marginalized based on their identity, it fosters resentment and disengagement, prompting them to leave the organization.

For example, Netflix initially made significant DEI commitments following George Floyd's murder, the company faced backlash when it laid off many employees of color during financial cutbacks. This led to perceptions that these employees were merely "diversity hires," highlighting a lack of genuine support for underrepresented groups.

While companies pledged approximately $200 billion to combat systemic racism and promote equity, the actual spending has been minimal, raising concerns about accountability and follow-through.

3. Unethical behavior

Organizations that tolerate unethical practices contribute to a toxic culture. Employees who witness or experience unethical behavior may feel compelled to resign, especially if they believe their values are not aligned with those of the company.

For example, Walmart faced criticism for releasing a Juneteenth-themed ice cream that many viewed as insensitive and performative. This incident showcased a lack of understanding and respect for cultural significance, leading to public backlash and illustrating the consequences of superficial DEI efforts.

4. Job insecurity and constant reorganizations

Frequent layoffs or restructuring can create an atmosphere of fear and instability. Employees who feel their jobs are at risk are more likely to seek opportunities elsewhere, particularly if they perceive a bleak outlook for the company.

For example, Amazon, the tech giant has been known for frequent layoffs and restructuring, which creates an environment of job insecurity. Employees often feel expendable, leading to high turnover rates as they seek more stable employment opportunities.

5. Lack of recognition for performance

When high-performing employees do not receive acknowledgment or rewards for their contributions, it can lead to dissatisfaction. A culture that fails to differentiate between high and low performers may drive away top talent, as these individuals seek environments that recognize their efforts.

For example, reports indicate that despite a diverse workforce, many employees at Nike feel overlooked for promotions and recognition. This lack of acknowledgment can lead to dissatisfaction and contribute to a toxic work environment where high performers may leave in search of better opportunities.

6. Negative response to crises (e.g., COVID-19)

Companies that poorly manage crises like the COVID-19 pandemic can exacerbate employee dissatisfaction. Negative perceptions of a company's response to such events can lead employees to question their loyalty and seek employment elsewhere.

For example, Tractor Supply, after facing backlash for abandoning its DEI initiatives, the company struggled to manage the fallout from its decision. This poor handling of community relations during a crisis reflects a lack of commitment to inclusivity and can damage employee morale and public perception.

How to deal with toxic environment at work

Dealing with a toxic work environment requires a proactive approach to protect your mental health and well-being. Here are effective strategies to navigate and mitigate the effects of a toxic workplace:

1. Recognize the signs

Understanding what constitutes a toxic environment is crucial. Signs include:

  • Frequent infighting and conflicts among colleagues.
  • Intimidation or bullying behaviors.
  • A lack of support from management.
  • High levels of stress and anxiety among employees.

2. Document everything

Keep a detailed record of incidents that contribute to the toxic atmosphere. This includes:

  • Dates, times, and descriptions of specific events.
  • Names of individuals involved.
  • Any witnesses present.

Documentation can be vital if you need to report the behavior or seek support from HR.

3. Set boundaries

Establish clear boundaries to protect your mental health:

  • Limit interactions with toxic individuals as much as possible.
  • Communicate your limits assertively but respectfully.
  • Prioritize self-care activities outside of work to recharge.

4. Seek support

Connect with trusted colleagues or friends who can provide emotional support:

  • Share your experiences and feelings with someone who understands.
  • Consider joining support groups or professional networks that focus on workplace issues.

5. Utilize company resources

If available, take advantage of resources provided by your employer:

  • Employee Assistance Programs (EAPs) often offer counseling services.
  • Speak with HR about your concerns; they may be able to address the issues or provide guidance.

6. Focus on self-care

Prioritize activities that promote your mental well-being:

  • Engage in regular physical exercise to reduce stress.
  • Practice mindfulness or meditation techniques to enhance resilience.
  • Ensure you have a healthy work-life balance by setting aside time for relaxation and hobbies.

7. Consider your options

If the situation does not improve, it may be necessary to explore other employment opportunities:

  • Update your resume and start networking within your industry.
  • Look for organizations known for their positive workplace culture.

8. Advocate for change

If you feel safe doing so, consider advocating for improvements in your work environment:

  • Provide constructive feedback to management about the workplace culture.
  • Suggest initiatives that promote mental health and well-being, such as team-building activities or training on conflict resolution.

Addressing a toxic work environment is essential for maintaining mental health and overall well-being.

By recognizing the signs, documenting experiences, setting boundaries, seeking support, utilizing company resources, focusing on self-care, considering other options, and advocating for change, employees can effectively navigate these challenging situations while prioritizing their health.

Health impact of toxic work environment

A toxic work environment negatively affects both employee health and organizational productivity. High stress, anxiety, and burnout can lead to significant repercussions for businesses.

  • Increased absenteeism and sick leaves: Toxic workplaces often result in higher absenteeism due to stress-related health issues, disrupting team efficiency and increasing workloads for remaining staff.
  • Decreased productivity: Stress diminishes employees' performance, reducing motivation and creativity. This decline in productivity can be costly, while a healthy environment fosters engagement and innovation.
  • High employee turnover and recruitment costs: Unhappy employees are more likely to leave, leading to high turnover rates. The costs of recruiting and training new hires can be substantial, impacting morale among remaining staff.
  • Damage to employer brand and reputation: Frequent departures due to workplace toxicity can harm an organization’s reputation, deterring potential talent and damaging relationships with clients and stakeholders.
Take the example of Amazon. The statistics surrounding Amazon's warehouse working conditions reveal significant concerns regarding employee safety and well-being. In 2021, Amazon warehouses reported an injury rate of 7.7 injuries per 100 workers, compared to 4.0 injuries per 100 workers at non-Amazon warehouses.

Furthermore, the serious injury rate at Amazon was 6.8 per 100 workers, which is nearly double the 3.3 per 100 workers found in the broader warehouse industry. In 2022, Amazon reported a total of 39,000 injuries across its U.S. facilities, more than double the injury rate at non-Amazon warehouses.

There was a survey conducted which indicated that 51% of Amazon employees felt that productivity monitoring negatively impacted their physical health, while 57% reported adverse effects on their mental health due to constant surveillance and pressure to meet quotas. These figures highlight a troubling pattern of workplace conditions that prioritize speed over safety, leading to a higher incidence of injuries and a toxic work environment.

How can Empuls help with creating an inclusive, transparent environment at work?

Empuls offers several features that combat toxic workplace culture and promote inclusivity and transparency:

  • Open communication: Empuls facilitates transparent communication through a social intranet, allowing employees to share ideas and feedback freely, which fosters trust and collaboration.
  • Employee recognition: The platform encourages timely and meaningful recognition of employee achievements, helping to boost morale and create a positive atmosphere.
  • Engagement surveys: Empuls conducts regular surveys to gather employee feedback, enabling organizations to identify issues and promptly take corrective actions.
  • Community building: By creating community groups, Empuls helps employees connect over shared interests, enhancing relationships and reducing feelings of isolation.

By integrating these features, Empuls helps organizations create a healthier work environment where employees feel valued and engaged, effectively combating toxic culture.

Enhance your team's perception of your organization with the Empuls platform, built on AWS to deliver powerful tools for creating a workplace culture where every employee feels valued and appreciated. With personalized rewards, Empuls strengthens trust and connection across your workforce. Discover how Empuls can elevate your employee experience—schedule a demo today!

Conclusion

For companies, addressing toxicity is essential for maintaining productivity and fostering long-term employee loyalty.

One way businesses can create more positive work cultures is by implementing systems that recognize and reward employees for their hard work and contributions.

Platforms like Empuls offer tailored solutions that foster positive workplace dynamics. Empuls’ reward programs help organizations create meaningful experiences that increase engagement and reduce turnover.

Through personalized rewards, companies can improve employee engagement and morale and foster a culture of appreciation, contributing to a healthier work environment overall.

FAQs

1. What are the 7 signs of a toxic work environment?

The key signs of a toxic work environment include poor communication, unrealistic expectations, a high turnover rate, micromanagement, gossiping, blame culture, and lack of recognition.

2. How to tell HR about a toxic work environment?

To report a toxic environment to HR, document specific incidents, be objective, and offer solutions where possible. Be prepared with evidence to support your claims.

3. Is it ok to walk away from a toxic work environment?

Yes, walking away from a toxic work environment is a valid choice, especially if the situation is taking a toll on your health and well-being. Sometimes, leaving is the best option.

4. What is considered mistreatment of employees?

Mistreatment of employees includes harassment, discrimination, bullying, overwork, and any behavior that compromises an employee’s well-being.

5. How do you tell if you are being treated unfairly at work?

If you feel like your contributions are being overlooked, you're subjected to unfair treatment, or there’s a significant difference in how others are treated compared to you, you may be experiencing unfair treatment.

6. How to deal with toxic environment at work?

Set boundaries, seek support, document incidents, and approach HR if necessary. If the environment doesn’t improve, consider looking for opportunities elsewhere.

7. What is a toxic environment at work?

A toxic environment at work is characterized by negativity, high levels of stress, poor communication, discrimination, and a general lack of employee well-being. It can cause significant emotional and physical harm over time.