Culture: How to Fix a Toxic Workplace

A report published by the?McKinsey Health Institute , surveying 15,000 employees and 1,000 HR decision-makers in 15 countries (including Japan), concludes toxic workplace behavior was the most significant predictor of negative workplace outcomes by more than 60 percent of the total global variance. The negative workplace outcomes measured were Intent to leave, burnout, distress, depression symptoms, and anxiety symptoms; Intent to leave and burnout topped the list at 73% and 70% of global variance in outcome, respectively.?

For organizational leaders, in a nutshell, a toxic work environment is highly likely to cause burnout among employees, leading to an intention to leave the company.

Apart from damaging creativity and productivity, a toxic work environment tarnishes the employer’s brand through negative word-of-mouth and public reviews, complicating talent acquisition efforts in an ever-increasing skills-short market. The cost of replacing employees ranges from one-half to two times their annual salary.

While the opportunity for employers to address toxic work environments is crystal clear, what should you do as a leader??

Step One: Identify the red flags and address the root causes

To effectively address the root causes of a toxic workplace, leaders must delve deeper into these five core areas:

1. Communication and Clarity Issues: Establish open communication channels and ensure all employees are on the same page regarding their roles and responsibilities. Encourage feedback and create a safe space for employees to voice their concerns without fear of retribution.
2. Trust and Relationship Issues: Build trust through transparency, consistency, and fairness—Foster positive relationships among team members and between employees and management.
3. Work-Life Balance and Employee Well-being: Promote a healthy work-life balance and provide resources to support employee well-being. This could include flexible working arrangements, mental health support, and initiatives to reduce workplace stress.
4. Organizational Culture and Support: Cultivate a positive corporate culture that supports employee growth and development. Ensure adequate resources and support systems are in place for employees to thrive.
5. Fear and Job Security: Address job security concerns and create a stable work environment. Ensure that employees feel secure in their roles and confident in the organization's future.

Step Two: Handle the Bad Actors

Creating a no-tolerance policy for harassment and other toxic behaviors is crucial. This step involves:

1. Clear Policy Communication: Ensure that all employees know the organization’s professional conduct policies.?
2. Training and Education: Train employees and management on identifying and preventing harassment and toxic behavior.
3. Reporting Mechanisms: Establish straightforward and confidential mechanisms for employees to report toxic behavior.
4. Prompt Action: Take quick and decisive action against individuals engaging in toxic behavior. This could include disciplinary action, counseling, or termination, depending on the severity of the behavior.
5. Support for Victims: Provide support and resources for victims of harassment and toxic behavior. Ensure that they feel heard, validated, and protected.

Step Three: Build and Promote a Culture Based on Core Values

While many types of organizational cultures exist, aihr.com has a great article detailing the four-types of organizational culture based on the Competing Values Framework (stability vs. flexibility and internal vs. external focus). For a further deep-dive into this topic, click?here .?

No matter what culture you decide to build, following these steps will help reinforce positive behaviors throughout the company:?

1. Defining Core Values: Clearly define the organization’s core values and ensure they are communicated throughout all organization ranks.
2. Leading by Example: Leaders must embody the organization’s values in their behavior and decision-making. They set the tone for the rest of the organization.
3. Rewarding Value-Aligned Behavior: Recognize and reward employees demonstrating the organization’s values.
4. Addressing Value Misalignments: Address and rectify any misalignments between employee behavior and the organization’s values.
5. Continuous Communication: Regularly communicate the importance of the organization’s values and how they relate to the work being done. Use real-life examples to illustrate these values in action.

Conclusion

Culture is how employees' hearts and stomachs feel about Monday morning on Sunday night. - Bill Marklein, Employ Humanity

Addressing a toxic work environment and fostering a healthy work culture is imperative for the sustainability and success of any organization. While talent management exercises can help curb the negative behaviors of existing employees, it's equally crucial for Talent Acquisition teams to implement values-based checks throughout the interview process. It is easier to teach a skill than to correct a behavior, and ensuring candidates align with organizational values from the onset can significantly contribute to a harmonious and productive workplace and fewer headaches in the future.

Looking for more actionable strategies to revitalize your culture?? We would love to connect with you.? Click here to download our free resources today!