Toxicity in the Workplace: Why It Persists — and What Leaders Can Do About It

Workplace toxicity is damaging organizations from the inside out — affecting performance, retention, and mental health.

Female manager angrily confronting a stressed employee during a tense workplace conflict

Adapted from an interview with Vanessa Ogle of Authority Magazine

Workplace toxicity is damaging organizations from the inside out, affecting performance, retention, and mental health. While many companies are investing in engagement initiatives and wellness programs, toxic behaviors often remain unaddressed — quietly eroding trust, morale, and performance.

What Is Workplace Toxicity?

At its core, workplace toxicity is defined by repeated negative behaviors that harm individuals, teams, or organizational culture.

These behaviors can range from overt and illegal actions, such as harassment or discrimination, to more subtle but equally damaging patterns, including:

  • Bullying, intimidation, or yelling
  • Manipulation or gaslighting
  • Excessive workloads and poor work-life boundaries
  • Public shaming or belittling
  • Micromanagement disguised as “high standards”

The impact is significant. Toxic environments are linked to higher turnover, lower productivity, increased stress, burnout, and serious mental health challenges.

What makes toxicity especially difficult to address is that the same behavior can affect people differently. What one person experiences as “teasing” or “normal workplace banter” may feel deeply disrespectful or threatening to another.

A Firsthand Lesson in Workplace Toxicity

Earlier in my career, I witnessed workplace toxicity firsthand.

There was growing tension between the HR and Finance teams related to employee data errors. HR was responsible for data input, and Finance relied on that data for payroll and reporting. When errors occurred, Finance absorbed the consequences — overtime, rework, and mounting frustration.

Although HR worked to resolve the issues, fixes were complex and slow. During this time, two senior Finance leaders began bullying the HR employee responsible for data entry — both verbally and via email. They openly berated her in front of others.

We brought in a third party to intervene, but before meaningful progress could be made, the company was sold.

The lasting impact was profound. The individual who bore the brunt of the toxicity experienced trauma and later developed PTSD. While she eventually grew stronger, the situation should never have escalated to that point.

This experience fundamentally shaped how I view leadership and the responsibility leaders have to act early.

How to Recognize a Toxic Workplace

Toxicity often announces itself long before it becomes a crisis. Common warning signs include:

  • Increased complaints to managers or HR
  • Noticeable tension — both in-person and virtually
  • Higher absenteeism and requests to work remotely
  • More mistakes, lower productivity, and disengagement
  • Declining engagement survey scores

Stress compounds stress. As pressure rises, performance suffers, and the cycle accelerates.

What Causes Toxic Work Environments and What Leaders Can Do

There is rarely a single cause of toxicity. More often, it’s a combination of individual stress, leadership gaps, and systemic pressures.

1. Personal stress spilling into the workplace

Employees today are navigating unprecedented stress. When people are overwhelmed, coping behaviors often surface unfiltered — blame, yelling, withdrawal, or control-seeking.

In some cases, individuals who feel powerless in their personal lives attempt to regain control at work through bullying or belittlement. Leaders must stay attuned to rising stress levels and how employees are responding.

2. Learned leadership behaviors

Many leaders manage the way they were managed.

I’m currently coaching a leader who believed yelling was motivating, because it worked for him. It was also how he was parented. While some team members tolerated it, others were deeply affected.

Intent does not negate impact. These behaviors are unacceptable, regardless of how normalized they may feel.

3. Unsustainable workloads and burnout

Burnout is rising sharply. Many organizations are responding by promoting PTO, banning after-hours emails, or reestablishing boundaries between work and home.

These steps matter, but only when leaders model and reinforce them.

4. Gaps in basic management skills

Too often, managers lack training in communication, delegation, and coaching. Micromanagement frequently stems from fear, control needs, or uncertainty, and it is a common contributor to workplace toxicity.

What You Can Do If You’re Experiencing Toxicity

If you’re facing toxic behavior, taking action can feel risky, but silence often allows harm to spread.

Start with these steps:

  1. Follow the chain of command.
    Speak with your manager and clearly describe the behaviors and their impact on you and others.
  2. Use anonymous reporting if needed.
    Many organizations offer hotlines. Be specific so concerns can be properly investigated.
  3. Escalate to HR when necessary.
    Formal complaints typically trigger an investigation.

The hardest situations often involve high performers with critical skills. But failing to address toxic behavior, regardless of who it comes from, can cause far greater damage than leaders anticipate.

The Mental Health Cost of Workplace Toxicity

Watching someone’s self-esteem unravel due to workplace toxicity is devastating.

Research shows that 77–81% of employees experience work-related stress, and 57% say it negatively affects them. In my previous organization, I kept a running list of employees struggling with mental health challenges and made a point to check in and connect them with resources regularly.

Progressive organizations are leading the way. One example is Deutsche Bank, which created a mental health Employee Resource Group and trained employees to provide peer-to-peer support. Mental health is no longer taboo; it’s openly discussed.

How Healthy Cultures Are Built (and Rebuilt)

One of the most effective practices I use with clients is developing clear working norms, agreements, or values, created together as a team.

These include:

  • Communication expectations (email, meetings, virtual etiquette)
  • Feedback norms
  • Conflict resolution practices
  • Explicit definitions of acceptable and unacceptable behavior

When teams have struggled, these conversations focus on resetting and moving forward. Because behavior change is difficult, these agreements must be revisited consistently until they become second nature.

As an executive coach and educator, I strongly believe that better listening, influence, and conflict management skills are essential. Most people want to work well with others. They simply don’t understand the unintended consequences of their behavior.

5 Strategies for Creating a Healthier Work Environment

1. Clearly define what’s acceptable and what’s not

Isolation during COVID blurred workplace norms. Leaders must clearly outline behavioral expectations and formalize them in policies and handbooks. Be specific, including guidance on office relationships and power dynamics.

2. Address issues early

Unaddressed behavior spreads. The longer it persists, the more toxic it becomes.

3. Lead with empathy and perspective

Resilience levels differ. Just because something doesn’t affect you doesn’t mean it won’t affect someone else. Understanding context matters.

4. Watch for behavioral changes

Increased absences, mood shifts, disengagement, and errors can all be signals. Some individuals may be trauma-triggered, and those patterns require sensitivity and support.

5. Listen and act

One client recently held “Listening Moments” to better understand engagement scores and co-create solutions. Listening without action erodes trust; listening followed by action builds it.

Final Thought: Standards Create Safety

Rudeness has become alarmingly common. People feel free to dismiss or attack those who think differently.

Leaders must set clear standards for respectful discourse, not to eliminate disagreement, but to ensure disagreements happen productively and civilly. Psychological safety doesn’t mean avoiding conflict; it means handling it with intention, respect, and accountability.

Healthy cultures don’t happen by accident. They are built one behavior, one conversation, and one courageous decision at a time.

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