Addressing Toxic Workplace Culture in Modern Organisations

More than ever, workplace dynamics are under intense scrutiny, and the issue of toxic culture has come to the forefront. From public services to corporate offices, the impact of such environments on employee wellbeing and organisational health is undeniable. The Executive Magazine explores how a toxic culture can have a profound effect on business, and steps executives can take to eradicate it
Picture of Elizabeth Jenkins-Smalley

Elizabeth Jenkins-Smalley

Editor In Chief at The Executive Magazine

In recent times, the issue of toxic workplace culture has garnered significant attention in the media, notably within organisations such as the Fire and Rescue Service, Metropolitan Police, and Brighton and Hove City Council, all entangled in accusations of violent, racist, sexist, and homophobic misconduct.

The Economic and Social Impact

An alarming statistic reveals that one in five Americans have departed their jobs in the past five years owing to unfavourable company culture, incurring a staggering cost of $223 billion, as estimated by the Society for Human Resource Management (SHRM). The American Psychological Association’s (APA) 2023 Work in America workforce survey found that 19% of participants describe their workplace as toxic, and 22% attest to their work environment detrimentally impacting their mental health. In the United Kingdom, the economic toll of employees leaving due to poor company culture is estimated at £23.6 billion annually.

Defining Toxic Work Environments

The question then arises: How can organisations effectively prevent and address a culture so detrimental that it drives employees to resign? A toxic work environment is characterised by pervasive negative behaviours like bullying, harassment, victimisation, and manipulation, leading to reduced productivity, diminished trust, elevated stress levels, and a psychologically unsafe atmosphere.

The Misconception About Culture Change

Contrary to common belief, altering a toxic workplace culture involves more than changing individual behaviours; it necessitates addressing the social contexts and norms that shape these behaviours. Fundamental shifts in mindsets and behaviour patterns, starting with the leadership team, are essential. Such changes can cascade through the organisation, fostering a more humanistic management approach.

The Human Aspect of Organisations

As organisations are composed of individuals, it is crucial to consider human aspects like emotions, moods, relationships, and well-being. Culture influences how individuals experience and express emotions at work. Building a healthy emotional culture involves promoting a positive emotional learning cycle.

Identifying and Understanding Toxicity

Understanding the genesis of a toxic workplace is vital for resolution. Many organisations struggle to recognise their environment as toxic, often normalising such settings. It’s crucial to be vigilant for signs of toxicity, such as lack of work-life boundaries, distrust among staff, intolerance of mistakes, unhealthy interpersonal relationships, lack of support for employee growth, role confusion, high stress-related illness rates, and high staff turnover.

Case Study: The CityClean Example

The CityClean case provides a vivid illustration of how various factors can converge to create a toxic workplace. In this instance, a mix of dominant trade unions, antiquated recruitment processes, and ineffective management practices, compounded by political meddling, led to significant operational and cultural challenges. The environment within CityClean was likened to the scenario depicted in ‘Animal Farm’, indicating a systemic breakdown of organizational values and ethics.

This case underscores the complexity of workplace toxicity, where issues are not solely the result of individual behaviours but are deeply rooted in the fabric of the organisation’s structure, leadership, and operational norms. The CityClean example serves as a cautionary tale, demonstrating that without addressing the underlying systemic issues, efforts to remedy a toxic culture are likely to be ineffective. It emphasises the need for comprehensive strategies that consider all aspects of an organisation’s functioning, from leadership and management practices to employee relations and organisational policies.

Managing Toxic Personalities

Addressing toxic personalities and their influence is another aspect. Research by TalentSmart reveals that 90% of effective leaders can manage their emotions under stress, maintaining calm and control. Key strategies include establishing boundaries, handling conflict, staying emotionally aware, focusing on solutions, and using support systems. Understanding the concept of ‘projection’—where individuals project their flaws onto others—is also crucial.

The Importance of Systemic Change

Leaders often believe that changing a single toxic personality is simpler than transforming an entire team or organisational culture. However, without systemic change, problems tend to persist or shift elsewhere. Kusy and Holloway’s study recommends a multi-level intervention approach—organisational, team, and individual—with emphasis on organisational and team levels for greater effectiveness.

Building a Vibrant Culture

Creating a vibrant organisational culture transcends mere recruitment of the right personnel or establishing popular core values. It requires a collective effort from all employees, not just senior management, to actively embody and reinforce these values.

Evaluating and Aligning Core Values

Regularly conducting cultural diagnostics is advised to ensure that core values are concrete, relevant, and connected to meaningful outcomes for employees. This continuous evaluation helps align values with the unique character of the organisation and provides clear behavioural guidelines for staff.

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