Why Toxic Culture Should Be Every Leader’s Concern

“Toxic workplace culture is the single worst thing about our jobs,” stated Bruce Daisley, former vice president of Twitter and author of Joy of Work. Delivering a keynote at the CIPD Annual Conference and Exhibition, Daisley urged leaders to confront the behaviours that define their organisations, emphasising that “the culture of any organisation is shaped by the worst behaviour the leader is willing to tolerate.”

Why Toxic Culture Should Be Every Leader’s Concern

Toxic culture has long been a leading cause of employee disengagement and attrition. During the Great Resignation, it was ten times more influential than pay dissatisfaction in driving turnover. Toxic workplaces cost U.S. employers billions annually, yet their pervasive nature often goes unaddressed because organisations fail to clearly define what constitutes toxicity.

Unpacking the Meaning of Toxic Culture

Daisley highlighted that not all workplace frustrations equate to toxicity. Research points to specific behaviours and patterns that erode morale, engagement, and trust. A study analyzing over 1.3 million Glassdoor reviews identified five key attributes of toxic culture: disrespect, noninclusion, unethical behaviour, cutthroat competition, and abusive management. These “Toxic Five” elements severely harm employee well-being and retention.

1. Disrespect

Disrespect is the most damaging aspect of workplace culture. Employees who feel undervalued or dismissed are more likely to disengage and rate their organisation poorly. Respect is foundational to a positive work environment, and its absence leads to significant dissatisfaction.

2. Noninclusivity

Noninclusive environments marked by discrimination and favouritism create profound inequities. Complaints about exclusion based on gender, race, age, or other characteristics underscore the harmful impact of failing to prioritize diversity and equity.

3. Unethical Practices

Unethical behaviour, including dishonesty and regulatory violations, erodes trust. Employees often cite misrepresentation and a lack of integrity as key factors contributing to a toxic culture.

4. Cutthroat Competition

Workplace competition can motivate performance, but when it becomes hostile—marked by sabotage and backstabbing—it destroys collaboration and fosters toxicity.

5. Abusive Management

Hostile behaviours from managers, such as bullying and verbal abuse, are particularly damaging. While less common, abusive management has an outsized impact on employees’ perceptions of their workplace.

The Cost of Toxicity

Toxic cultures not only harm employees but also impose significant financial and reputational costs on organizations.

Attrition and Replacement Costs

Toxicity is a primary driver of employee turnover, which can cost organisations up to twice an employee’s annual salary for each departure. Companies with reputations for toxic cultures struggle to attract and retain talent.

Decreased Productivity

Disengaged employees contribute less to organizational success, and toxic environments exacerbate absenteeism and reduce innovation.

Reputational Risks

Unhealthy cultures often lead to unethical behaviours that result in scandals, legal fees, and lasting damage to public perception.

Strategies to Combat Toxicity

Daisley presented a framework addressing three key aspects—identity, agency, and community—that can help rekindle the enjoyment of work. He also recommended practical measures such as reducing unnecessary meetings, fostering social rituals, and offering greater autonomy to employees.

Rediscovering Joy at Work

Research shows that 90% of workers feel disengaged, and many doubt their jobs provide long-term stability. Daisley emphasized the importance of creating meaningful connections among colleagues and making office returns worthwhile. Simple practices like themed social gatherings or focused workdays can strengthen team cohesion.

Intentional Leadership

Leaders must confront the “bureaucracy we’ve created” by eliminating redundant meetings and ensuring that office time is impactful. Daisley noted, “The number one thing that kills office time is when people make an effort to come in and find themselves in back-to-back virtual meetings.” He advised creating office days that feel distinct and valuable.

Conclusion

Toxic culture is pervasive but preventable. By focusing on respect, inclusivity, ethics, collaboration, and empathetic leadership, organisations can transform their workplaces. Addressing these challenges requires commitment and intentionality, but the reward is a healthier, more engaged workforce and a thriving organisation.