Culture May Be the Antidote to Your Toxic Work Environment

Thirty-five percent of employees would be willing to take a pay cut in exchange for an overall healthier work environment, according to a recent survey of 800 HR leaders and 800 full-time employees by career development and outplacement firm INTOO.

According to the study, 77% of the workforce grapples with some form of workplace toxicity, yet employers don’t seem to be taking action to correct the problems, even amid widespread challenges in retaining and acquiring top talent.

Among the survey’s other key findings:

84% of employees said workplace toxicity has affected their engagement and commitment to their employer, and 79% report an affiliated decrease in productivity.
To get away from a toxic work environment, 44% of employees said they have used vacation/personal leave and 33% say they’ve used sick leave (i.e., faked being sick).
Almost half of employees who have experienced workplace toxicity believe their employer will take “very little” or “no” action to address their toxic work environment.

When a toxic work environment is not addressed, it can significantly degrade the overall employee experience, and by extension, even introduce risk to the organization’s ability to offer a positive customer experience, said Jill Havely, the head of global community excellence and employee experience at WTW.

“A toxic culture can harm a company’s brand, making it harder to attract top talent and introduce other more serious ethical or criminal risks that could more seriously damage an organization’s ability to conduct business,” she said.

But before employers can start fixing a toxic workplace, they must first recognize toxic workplace traits.

INTOO reported toxic workplaces have the following characteristics, ranked from most to least affecting, with as many as 46% of survey respondents experiencing the top reported behaviors:

Managers exhibiting favoritism with certain employees
Office politics
Office gossip or rumors
Managers or leaders ignoring employee feedback
Managers ignoring employees’ work-life balance
Managers overworking employees
Managers or leaders acting unethically
Unfair treatment of employees
Managers or leaders acting aggressively or in a cutthroat manner
Bullying, harassment or abusive behaviors

The Damaging Effects of a Toxic Workplace

INTOO’s survey data showed 80% of employees who have experienced workplace toxicity say it negatively affected their mental health, and nearly 3 out of 4 say it hurt their physical health.

WTW’s Global Wellbeing Diagnostic Survey also found employees in toxic work environments are nearly four times more likely to suffer from stress and about three times more likely to suffer from depression.

“Employees in toxic environments often feel undervalued, stressed and disengaged, leading to higher absenteeism and higher turnover, which costs companies a substantial amount in lost productivity and, ultimately, business performance,” Havely said.

Kathleen Schulz, a global innovation leader for organizational well-being at Gallagher, agreed that the impact of a toxic workplace often can be extensive.

In an organizational well-being report, Gallagher asked employers what components — beyond base salary — they leveraged most to attract and retain key talent. Culture was at the top of that list, followed by benefits.

Although organizational culture is likely a critical means to combat workplace toxicity, Schulz said the same report found only 23% of employers believe their culture has “improved or significantly improved” compared to a year ago.

“Employers need to understand that culture strongly influences employee behavior,” she said, adding that a toxic work culture can negatively impact behaviors related to health, work performance, and colleague and customer interaction.

“Negative employee behaviors increase organizational risk, including retention, financial performance, cyber threat, safety and health/healthcare costs,” Schulz said.

Cleaning Up the Toxicity

How can employers mitigate the challenges when faced with a toxic work environment?

WTW’s Havely offered several steps for employers:

Identify the underlying issues that are causing the toxic behaviors and address them by considering how people programs, policies and practices build trust, elevate equity and fairness, and motivate the right kinds of behaviors.

Foster a culture of physical and psychological safety and respect. Start by creating opportunities for two-way dialogue. Listen to employees through formal and informal channels. Transparent and authentic communication is likely critical for building a safe and open environment.

Focus on people and business leaders by developing leaders so they are prepared and equipped to address difficult situations and may foster a team environment that is perceived as trusting and safe for all.

Enforce strict policies against harassment and discrimination to further ensure a safe, inclusive workplace.

Develop, activate and integrate an employee value proposition that defines clear expectations for behaviors that deliver experiences that can help employees thrive.

In addition, Schulz said a crucial yet very basic strategy in limiting toxicity is to put the proper benefits and resources in place to support employee physical, emotional and financial well-being.

Additional Gallagher research also found a little more than two-thirds (67%) of employees believe it is senior leadership’s primary responsibility to develop and shape culture.

In effect, Schulz explained, a leader’s behavior influences those around them, for better or for worse. Thus, it creates both a responsibility and unique opportunity for leaders to create and model a positive and trusting workplace environment that supports both employee health and well-being.

“It’s critical, as all these areas are connected,” Schulz said.

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