EVERFI Content Team

Think the odds of a toxic culture existing in your company are low? Think again. According to an April 2024 poll by jobs site Monster, nearly seven in 10 workers feel they work in a toxic workplace. Not only that, but 61% of all workers say they would rather quit than deal with working in a bad environment.

To protect your employees — and your bottom line — here are the top signs of toxic workplace culture employers need to know, plus tips for preventing a toxic workplace.

1. High turnover rates

Witnessing a large number of employees leaving your company is the top predictor of a toxic corporate environment. “I can always tell how toxic a work environment is by looking on LinkedIn to see how many employees are ‘actively seeking new jobs,’” says Steven Lindner, an organizational psychologist and talent acquisition and assessment expert. “When you find yourself working for a toxic leader or in a toxic culture, your natural instinct is to withdraw, avoid and ultimately leave.”

2. Quiet quitting

While turnover indicates that employees are actively leaving your company, quiet quitting entails employees remaining employed, but disengaging from their job. Think participating and collaborating less during meetings, skipping social events and even refusing to deliver on job responsibilities. Quiet quitting is becoming more common and it is a more subtle sign of toxicity since it’s a precursor to losing valuable talent.

3.  Increased levels of absenteeism

A toxic workplace describes a culture that can lead to employees feeling demoralized, frightened, and even traumatized by their job. The result? An uptick in time-off being approved by managers, especially sick time related to issues associated with stress like fatigue, burnout, and anxiety.

4. Discrimination and inequity among employees

Another powerful predictor of a toxic culture is how well companies encourage the fair treatment of diverse groups of employees. Specifically, workers who report mistreatment of an employee based only on their demographics, whether it was gender, race, sexual identity and orientation, disability, or age, are more likely to call their workplace toxic, according to a MIT Sloan Management Review (MIT SMR) culture study.

5. Excessive office gossip and cliques

While office gossip may seem benign on the surface, it can actually be a serious sign of a non-inclusive toxic work environment. The presence of cliques or reports of cliquey behavior in particular indicates employees are being excluded for one reason or another which can breed toxicity.

6. Workplace incivility

Civil behavior, such as consideration, courtesy and respect for other individuals, is one of the key drivers of creating a positive workplace culture. Incivility, or rude and disrespectful behavior, on the other hand, is linked to a toxic workplace, and can include everything from speaking over other employees in meetings, showing up late to the office and acting temperamental during discussions.

7. High volume of grievances against managers

While incivility can exist among employees, a large number of reports of uncivil behavior to HR, particularly involving managers, can signal a widespread toxic environment. Examples can include inconsiderate comments made by managers, microaggressions, such as mistaking others as more junior than their actual role, as well as micromanagement.

8. Dishonest or unethical leadership

Like the boy who cried wolf had to suffer the consequences of his actions, so too do business leaders who fail to follow-through on promises, communicate honestly, or comply with company regulations. When employees feel deceived, trust in management is lost and a corporate culture suffers.

9. No room for mistakes

In a fear-based culture, managers punish even small mistakes harshly and reward those who will do anything in order to get the job done, even if that inhibits striking a healthy work-life-balance. This type of culture can breed intense competition and a cutthroat  toxic environment in which backstabbing and sabotaging your coworkers to get ahead become commonplace.

10. Bullying, harassment and hostility

An abusive atmosphere is by and large one of the most telltale signs of a toxic work culture, especially if the hostile behavior is prolonged and starts at the top. These behaviors include bullying, yelling at employees, belittling subordinates, verbally abusing people, and workplace violence.

The Consequences of a Toxic Workplace

Not only does a toxic job impose an enormous amount of stress and anxiety on employees, it stifles creativity, innovation, and overall productivity, Lindner explains, which can result in an enormous financial loss for companies. “Simply put, workplace toxicity is counterproductive and should not be tolerated,” he says. Here’s a closer look at how a toxic culture affects both parties:

How a Bad Environment Impacts Employees

Toxic workplaces are associated with diminished psychological well-being. Here’s how negative work culture affects employees:

• Poor mental health: Nearly 75% of workers say their mental health at work is poor or fair and 62% of workers say that a toxic work culture is to blame.
• Burnout: Prolonged stress and anxiety can lead to overall mental exhaustion which can force employees to take more time off, cut corners on tasks, and even quit to regain their energy.
• Physical illness: When employees experience toxicity in the workplace, their odds of suffering a major disease, including coronary disease, asthma, diabetes, and arthritis increase by 35% to 55%.

How a Bad Environment Impacts Companies

A toxic workplace culture costs companies money. Period. In fact, by the end of 2024, the Society for Human Resource Management (SHRM)  discovered that U.S. organizations were collectively losing a staggering $2 billion per day due to toxic incivility in the workplace. Here’s a closer look how:

• Increased employee attrition. A bad environment forces workers out the door, and replacing an employee can cost companies up to twice the employee’s annual salary.
• Decreased productivity. Quiet quitting entails employees disengaging at work and the result is often falling short on delivering on their job responsibilities.
• Higher employer health care costs. Toxic culture increases the risk of health conditions for workers, so employers can also expect an increase in insurance costs.

Five Ways to Fix a Toxic Workplace

Improving corporate culture starts with managers holding themselves accountable and training colleagues on how to deliver on what matters most to employees. Here’s how:

1. Prioritize culture over compensation. While it may surprise managers, 79% of workers prioritize their work well-being more than a raise or promotion. That means taking actionable steps to prevent a toxic culture should come before trying to retain talent with a salary increase.
2. Require compliance training. When management fails to comply with applicable regulations, employee trust vanishes. Regulatory compliance and ethics training ensures leaders are aware of the most applicable regulations they need to follow and why.
3. Stop discrimination before it starts. Harassment and discrimination courses can help train employees with how to respond so that insults or jokes that devalue others based on their identity or background don’t go unreported and can be prevented.
4. Make mental health matter. Nearly 80% of workers don’t think their employer is doing enough to address their mental wellness at work which can exacerbate the negative effects of a toxic workplace. Educating leadership on topics that directly affect workplace culture and worker well-being, such as inclusion and abusive behavior, can help.
5. Banish bias. Creating an organization where employees can share their experiences and selves through safe and honest conversations is critical to creating a positive culture. Not sure where to start? Uncovering unconscious bias among employees will highlight any issues in this area so you can address them. Learn more about EVERFI’s Managing Bias training and request a demo here.