7 Signs Your Company is Toxic and How to Fix That

According to a recent study, toxic work environments contribute to 50% higher turnover rates and decreased employee productivity. If your company exhibits any of these signs, it’s time to take action

Here are 7 signs of toxicity in your business and how to remove it:

1.?? ?Plenty of Gossiping

?One of the biggest signs your company has become a toxic environment is having plenty of gossip to go around. A little gossip is fine, even unavoidable, but too much can quickly bog down operations. Chatter can be healthy but are people crib-gossiping about the top? That’s toxic. Handling it is a matter of finding out what is causing gossip, whether it is a bad hire that slipped through your policies or confusion in company direction. Once you figure out the source of the gossip, you can take the right actions to correct it.

2.?? ?High Turnover Rates

?If you are doing your due diligence when hiring, turnover rates will likely be low. However, if you see unusual turnover rates especially in the lower layers, you may have a toxic environment on your hands. You need to speak to employees leaving the company and encourage them to speak frankly about why they're taking their skills elsewhere. That way, you can pinpoint what is pushing people out and handle the situation immediately.

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3.?? ?Low Motivation or "Quiet Quitting"

Employees doing the bare minimum can quickly ruin your culture. Are you over-recruited? It won't matter how good your product is if your team isn't performing at their best or passionate about their jobs. One of the best ways to combat poor motivation is to get team members invested in the business. Ask them for ideas and input. Publicly reward or congratulate high-performing employees. That kind of positivity can quickly lead to a happier and healthier workplace.

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4.?? ?Transparency is Lacking

?Entrepreneurs trying to find out if their company is toxic may want to pay attention to their managers. Employees should have as much information as possible to do their job. Managers or team leaders withholding information can quickly transform what should be a great workplace into a toxic one. Lack of transparency can add unnecessary stress and increase turnover rates. Talk to your managers and team leaders. Ensure that they are sharing what they need to with their team.

5.?? ?People Playing the Blame Game

One of the worst signs of a toxic work environment is when people frequently play the blame game. Instead of people taking responsibility for failures or mishaps, your team spends their time pointing fingers. They don't learn from their mistakes. This usually starts at the top. That kind of behaviour indicates that something went wrong when you hired people or your company culture is off. A few surveys where respondents maintain anonymity can help begin the journey to find what is at the root of the issue.

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6.?? ?Unhealthy Competition

Your team may be small, but silos can still form. Unhealthy competition between hostile factions can quickly cripple the small business's performance, as people are too focused on tearing each other down than doing their jobs. In that situation, it is your duty as the entrepreneur and leader to sit people down and resolve whatever interpersonal issues are present. The sooner you do that, the more likely you are to prevent deep-seated resentments from forming, making your job easier.

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7.?? ?Groupism or Cliques

?Your company is, ideally, a singular entity. Everyone works with everyone else, and their efforts are focused towards the business's goals. However, if groups or cliques form, interpersonal issues can crop up. People can feel left out, which can limit teamwork potential and overall productivity. Addressing that issue the moment you spot it is best, as it will keep resentment from taking root. Put great emphasis on inclusion and fair treatment.

While those are far from the only signs of toxicity in a company, they are among the most common symptoms. As an entrepreneur, keeping your environment healthy and inclusive is critical to not just getting the most out of your team but treating them humanely.

By actively fostering transparency, accountability, and collaboration, you can create a workplace that attracts and retains top talent—ensuring long-term business success?

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