How can companies tackle toxic cultures? Build an inclusive workplace.

In 2019 Equality Group commissioned a national survey which found toxic cultures have a corrosive effect on wellbeing.

The research found that over half (50%) of the workers thought a boss had caused them significant anxiety or stress, and 25% stated that their Sunday night anxiety is solely down to this. Meanwhile, 60% reported that a good manager meant they would stay in a role.

Three years on - a pandemic, the “Great Resignation” and a complete upheaval of how we work later - these statistics still resonate. 

A study in the MIT Sloan Management Review published in January 2022, which unpacked the reasons behind the “Great Resignation”, found that the top reason for employees choosing to leave their company was poor corporate culture. “A toxic culture is the biggest factor pushing employees out the door,” the study said.

What creates a toxic culture and what do they look like?

According to the MIT research contributing factors include: failure to promote diversity, equity, and inclusion; workers feeling disrespected; and unethical behaviour. 

In the workplace this might translate to a lack of transparency, a lack of trust between team members, not being able to express a difference of opinion, lack of a work-life balance, presenteeism, discrimination and harassment and social pressure and public humiliation - as explored by a recent Sifted article. All of which contributes to increased stress levels, poor mental health and burnout. 

This leads to high levels of attrition and lower levels of productivity, which is costing companies billions each year. In the US, the Society for Human Resource Management estimated that employee turnover caused by a toxic culture cost US employers almost $50 billion per year before the “Great Resignation” started. Meanwhile, in the UK data from consultancy Deloitte and mental health charity Mind, found that the UK’s presenteeism (where people work when they are not at their most productive because they feel pressure to be at work) problem is costing employers between ￡26-￡29 billion annually through lost productivity. 

Inclusion is the antidote to toxic cultures 

So, what is the antidote to toxic cultures? Companies need to intentionally build and nurture inclusive workplaces that value transparency, diversity and wellbeing - which in turn leads to increased productivity and lowers attrition rates. 

“Workplace inclusivity is fundamentally about culture – it’s about how comfortable employees feel within their workplace, and how able each individual feels to be their authentic selves within a professional setting,” Hephzi Pemberton, founder and CEO of Equality Group said. 

“Employee retention should always be at the forefront of companies’ minds, as even the best business cannot flourish without loyal employees. Companies with an inclusive culture have lower staff turnover and are subsequently more attractive to candidates,” she added. 

How can you build an inclusive culture? 

Unfortunately, there is no quick fix or silver bullet when it comes to building a truly inclusive culture. It takes a long term strategic commitment and by-in from leadership. Anything less and the initiative will not create the desired results. 

However, building inclusive cultures from end-to-end is what we do at Equality Group. We do this by uncovering EDI barriers through data analysis and offering tailored solutions, from hiring to training, to unleash performance. 

You can find out more on our website here: https://www.equality.group/contact 

Or get in touch with us via email: [email protected]