7 Signs of a Toxic Work Environment and How to Address Them

A healthy work environment is essential for promoting your company’s wellbeing, productivity, and staff retention. A positive workspace not only boosts employee morale but also enhances overall business performance and can drastically reduce turnover rates. 

Yet, it is not uncommon to see companies struggle with toxic work environments. A study by Oak Engage found that a massive 75% of the employees surveyed had experienced a toxic workplace culture at some point in their working lives. 

Some do not even realise that their company culture is toxic, as the signs can be rather subtle. However, we must address unhealthy work environments, as this is the first step toward creating a better and healthier work environment.

In this post, we will explain more about what a toxic work environment is, a few of the most common signs that your workplace has a toxic environment, and then how you can perhaps go about fixing that.

What is a Toxic Work Environment?

The term ‘toxic work environment’ refers to a workplace where hostile behaviours, such as bullying, intimidation, and manipulation, are the norm. 

Several factors can contribute to the development of a toxic work environment. Poor leadership is a significant factor, as ineffective or abusive leaders can set a negative tone for the entire company. In particular, leaders who engage in or tolerate bullying, favouritism, or dishonesty can create a breeding ground for toxicity.

Lack of communication is another contributor. When there is little to no communication about expectations, goals, or changes within the company, employees can feel disconnected and undervalued. Miscommunication or a lack of transparency can also lead to a sense of mistrust and frustration among employees.

Furthermore, unrealistic expectations from overworking employees with unattainable goals can lead to burnout and a sense of failure, contributing to a negative atmosphere. 

The 7 Signs of a Toxic Work Environment

High Employee Turnover

If you’ve noticed that your company seems to have a higher-than-usual turnover rate for your industry, this could be the first sign of a toxic work environment.

An unpleasant work environment can easily cause employees to disengage from their work and team and begin to seek roles in a more stable environment. 

It is important to note that a negative work environment may not always be the cause of a high turnover rate. 

High turnover can also be caused by certain ‘pull’ factors, for example, a similar company offering a higher salary or better benefits. In cases such as this, your company may have a great workplace culture, despite employees being drawn away for other reasons.

Nevertheless, if you notice your company struggling with a high turnover rate, particularly in certain departments or teams, and there don’t seem to be any obvious ‘pull’ factors that would encourage your employees to find work elsewhere, it may be time to look within your company for answers. 

Poor Communication

If you were to ask each member of your company what purpose their roles and work serve in the wider scope of the company, who they should speak to should they need guidance or assistance, and if they knew the company’s key policies and any recent changes made to them, would they be able to answer these questions?

Poor communication often manifests as a lack of transparency and feedback within an organisation. When information is not relayed properly, employees experience frequent misunderstandings and unclear instructions, negatively impacting productivity and morale.

Open and effective communication is essential for a healthy workplace. If you feel that your team struggles to communicate effectively, addressing this issue with them could be the first step to creating a happier work environment. 

Lack of Work-Life Balance

Excessive working hours and unrealistic expectations are major red flags of a toxic work environment. 

This very often takes the form of managers calling staff in on their days off and not taking no for an answer. It can also take the form of unspoken expectations for employees to work past the agreed end of their shift.

These demands take a toll on personal life and mental health, and can very often lead to employees feeling burnt out and unhappy in their role. 

Unhealthy Competition

Now, there’s nothing wrong with a little friendly competition here and there – in fact, creating fun competitions for your team to take part in can actually help boost engagement and may help your team grow closer.

However, an environment that consistently encourages rivalry over collaboration eventually creates stress and hostility among employees.

Such atmospheres undermine teamwork and as a result, undermine your company’s success, as you’ll lose the benefits of having a team that can build upon each other’s skills and work efficiently together. 

Micromanagement

Do you know if your team trusted to complete their work without constant supervision?

Over-controlling leadership that lacks trust in employees results in stifled creativity and independence.

Micromanagement decreases job satisfaction and hinders innovation. While it’s natural to care whether important work is being completed, staff should be given the trust and space to complete this work without constant monitoring, while asking for guidance when and if it may be needed. 

Discrimination and Harassment

While it may seem obvious that these behaviours would create a toxic work environment, we have listed this because bias, prejudice, and inappropriate behaviour can be hard to spot. Sometimes, these behaviours are extremely subtle, and the perpetrator(s) knows to hide their actions and intentions from those they’re not targeting. 

Employees can experience significant emotional and psychological distress from discrimination and harassment and it should not be tolerated under any circumstances.

Lack of Growth Opportunities

When a workplace fails to provide professional development and career advancement opportunities, employees become disengaged and stagnant. 

Ongoing training and clear promotional paths are essential for employee motivation and organisational growth.

Effects of a Toxic Work Environment on Employees

Toxic work environments can have a huge impact on the mental health of employees and can lead to issues over time such as depression, anxiety, and burnout. Extremely high stress can also manifest as physical issues. 

Workplaces like this can also have a large impact on job performance and productivity. An employee who feels unsafe and anxious in their workplace is very likely going to feel unable to do their best work and will be worried more about protecting themselves from toxic behaviours than trying to progress in their role. 

The adverse effects often spill over into employees’ personal lives, impacting their relationships, sleep, and overall well-being.

Addressing Workplace Toxicity

Identifying and addressing toxic elements within a workplace can be tricky. 

Leadership and HR play a pivotal role in fostering a positive environment through feedback, open communication, and employee support. 

If you’re in a position of leadership in your company, you’re in the best position to create change. By ensuring that you’re communicating with your team as much as possible, taking complaints seriously, and doing your best to lead by example, you can start to unravel the negativity surrounding you. 

Of course, this can get more difficult if it’s other members of the leadership team who are perpetuating this toxicity. All you can do is remember that you have no control or responsibility for the actions of others. Keep trying to spread positivity and set boundaries where necessary.

If you’re not in a position of leadership, you won’t be able to make changes yourself at a higher level. However, if you can identify a trustworthy manager and team members who also attempt to take positive action, you could discuss your concerns with them to find a solution.

It is also important that you maintain your boundaries, especially concerning your workload, how much you work, and how your fellow employees communicate with you. 

Ultimately, if it gets too much to handle, seeking a role in a more healthy work environment may be the best course of action. 

Conclusion

Recognising the signs of a toxic work environment is the first step towards creating a healthier workplace, or, if that’s not possible, finding one elsewhere.

By addressing these red flags and working towards building an environment that prioritises psychological safety, collaboration, and positive progress, organisations can enhance employee satisfaction and overall performance. 

We encourage readers to assess their work environments and, if possible, take actionable steps toward fostering a supportive and productive workspace.

If you found this blog valuable, keep an eye out for our next monthly update, and maybe check out our previous blogs for more insight – for more information on how to care for your employee’s wellbeing, you should check out our blog Employee Wellbeing: 5 Ways to Care for Your Team!

Thank you for reading! 💙

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