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How Toxic Cultures Can Destroy the Individuality of Their Employees
Rich Baron • July 6, 2023
Neglecting your culture can allow toxic elements to fester
A strong company culture can set clear expectations and values for employees, creating a sense of purpose, and meaning in their work. When employees feel aligned with the company's mission and values, they are more likely to be motivated and engaged in their tasks. This leads to increased productivity and performance, as employees are willing to go above and beyond to achieve the company's goals.
Both Sides of Culture
A positive company culture can significantly impact employee happiness and satisfaction. When employees feel supported, respected, and appreciated within the workplace, they are more likely to enjoy coming to work every day. This can result in higher levels of job satisfaction and a greater sense of fulfillment in their roles.
Additionally, a healthy company culture can contribute to lower levels of absenteeism. Employees who feel valued and supported are less likely to take unnecessary PTO or find excuses to avoid work. They are more likely to prioritize their work commitments and show up consistently, knowing that their contributions are recognized and valued.
On the contrary, neglecting company culture can have detrimental effects on employees. A toxic culture, where negative behaviors are tolerated and rewarded, can lead to high levels of stress, unhappiness, and burnout among employees. This can not only impact their overall well-being but also harm their mental and physical health.
Furthermore, a toxic culture can undermine performance and engagement. When employees feel demoralized or unsupported, their motivation and commitment wane. They may become disengaged, lacking the drive and enthusiasm to excel in their roles. This can result in decreased productivity, missed deadlines, and ultimately, poor performance.
A toxic culture can drive away talented employees. When a company fosters a negative environment, skilled and high-performing individuals may seek opportunities elsewhere. This can lead to higher employee turnover, which not only disrupts workflow but also incurs significant costs for recruitment and training. This can have a ripple effect on the overall reputation of the company. Employees who are unhappy and dissatisfied may speak negatively about their experiences, both internally and externally. This can damage the organization's reputation, making it harder to attract and retain top talent and potentially leading to a loss of business opportunities.
A Startling Statistic
According to research from Deloitte, only 12 percent of employees think their employers are “excellent” when it comes to driving the right company culture. Because culture is a top-down function and must begin with the CEO, this is indicative of poor, or struggling leadership. Based on this research, that would indicate that 88 percent of organizations need to take a serious look at why their company culture is struggling.
There are several factors in a toxic culture that can have a negative impact on the overall well-being of the employees. However, in this blog, I will address six toxic elements that can have a profound impact on individual employees as well as the overall company culture.
1. Bullying, Harassment, and Incivility
Bullying isn’t just a schoolyard problem. Unfortunately, playing unfairly in the sandbox has followed many into adulthood. Bullying can impact employee well-being, turnover, productivity, and organizational reputation. It comes in many forms, including unfair criticism, stealing credit for work, sarcastic or rude comments, sexual harassment, and outright threats.
Bullying can also come in a more subtle form that, though harder to detect, can be just as detrimental as more overt forms: incivility. Incivility often manifests as condescension, refusal to give credit for collaborative work, and ignoring employees’ input. In short, the toxic boss syndrome.
Surveys show that 75 percent of employees have encountered bullying in their careers, this is clearly no matter to be taken lightly and is a serious symptom of toxic culture as well as toxic bosses. If ignored, bullying behaviors will be seen as acceptable for any emerging leadership in the organization. They’ll become normalized and ingrained in the company culture. Many companies unfortunately turn a blind eye to this issue. However, companies must take a hard line on bullying and incivility. It can never be allowed to become acceptable. Let your employees know they can come to you to discuss inappropriate conduct and be certain you will take action when necessary.
2. Reluctance to Change
Businesses need to be forward-thinking and adaptable. They need to remain up to date with performance management trends to keep their employees engaged, and they need to tweak their workplace processes when the times require it. Tradition is never a good reason to keep doing things as they’ve always been. In fact, 75% of business transformations flat-out fail, resulting in an organization’s decline, failure, or eventual extinction. A big reason for their failure? CEOs and senior leadership teams were not as diligent as they needed to be in creating and transforming their culture in support of their vision and employee well-being. In fact, the biggest reason for their failure? A lack of leadership.
3. Accepting Feedback from Employees
All employees should be encouraged to give feedback on their roles and their work. What processes are difficult to work within the office? How can you adapt things to help improve employee performance? Could you possibly introduce flexible work arrangements or update technology to streamline business?
The best way to do this is through a comprehensive cultural assessment that first determines the senior leadership’s dedication to change, and secondly, allows for the entire organization to provide confidential feedback. This should never be done in-house, but through a qualified organization that can provide accurate accounting and feedback without any organizational prejudice.
Being willing to change will show your employees that you prioritize innovation and efficiency, while a reluctance to adapt will show existing and prospective employees that your business isn’t likely to thrive in the future.
4. Poor Communication
Communication is important to the success of any business. It is extremely important in fostering a world-class company culture. For this reason, businesses worldwide are trading in their annual appraisals for more continuous, regular feedback discussions.
Regular communication encourages employees to be more comfortable and confident in speaking their minds and sharing their concerns without fear of reprisal or termination. Managers should make time for regular, monthly check-ins. These monthly one-on-one discussions prove to employees you are invested in their development and eager to help them succeed. During these performance discussions, cover progress in terms of objectives, concerns, ambitions, and training. Improved communication will improve your company culture and boost employee morale in the long term.
5. A Lack of Transparency
The frequency of communication isn’t enough. Communication must be authentic, transparent, and relevant to the current situation. If managers aren’t open with their employees, employees won’t be eager to engage in meaningful dialogue and will hide issues from their company. To be transparent, communication must flow top-down, bottom-up, and side-to-side in a timely manner. Having parts of the organization hear about important news days, or weeks later, only fuels distrust in the leadership.
The senior leadership team should be discussing company values, goals, directions, and major organizational changes with everyone in the organization. There is no reason to keep important information from your employees, particularly when that information concerns them. Everyone should be viewed as part of a well-functioning team, and improved transparency will solidify this feeling of togetherness.
6. Numbers Based Employee Performance Ratings
Performance ratings are still common, although their popularity has seriously dwindled in recent times. That’s partly because ratings can often be detrimental to employee motivation and performance. And in truth, they are rarely effective in improving performance simply because the person giving the appraisal may not be entirely qualified to assess the employee’s strengths and gaps in a way that truly reflects their past or even future performance. In addition, merit increases based on the score can be viewed as unfair or even favoritism of other employees. In truth, rather than incentivizing employees to improve, a numbers-based method of appraisal can be extremely demoralizing. A focus on employee performance ratings can also create an unhealthy amount of competition in your workforce, which discourages knowledge-sharing and collaboration.
Wrapping Up
A well-developed company culture has the power to positively impact employee productivity, happiness, and absenteeism. Conversely, neglecting culture can allow toxic elements to thrive, leading to negative consequences for employee well-being, performance, and engagement. Organizations must prioritize and nurture a positive and supportive culture to create an environment where employees can thrive and contribute to the company's success.
About the Author
Rich Baron is the Director of Culture Transformation and Training as well as a Master Certified Intelligent Leadership Executive Coach at John Mattone Global. With a wealth of expertise spanning over 25 years, he has excelled in various realms such as cultural transformation, operational leadership, executive positions, and coaching individuals from emerging leaders to CEOs. Rich hosts "Mainline Executive Coaching ACT," a podcast acknowledged by Feedspot in 2023 as the foremost Executive Coaching Podcast worldwide. This recognition is based on an evaluation of numerous podcasts on the internet, taking into account factors such as web traffic, social media followers, and timeliness. The podcast enjoys a substantial following in more than 70 countries and 600 cities across the globe.
If the years since the pandemic are any indication of what we can expect in this ever-changing business world, leadership needs to be stronger than ever. With rapid changes in business worldwide, the leadership skills we need are changing. Strong, versatile leaders are needed to face the challenges we will inevitably see - leaders who can adapt, strategize, and motivate their teams through complex situations. However, studies show that organizations and leaders alike are far from prepared to combat these challenges. What Do The Studies Show According to the Bersin by Deloitte report High-Impact Leadership Development , organizations with stronger “leadership maturity” are 11 times more likely to have a high number of leaders who can build talent for competitive advantage. And they’re 7 times more likely to have a high number of leaders who can inspire people to follow them. Unfortunately, the report also found that capable leadership talent is very rare. Only 60% of leaders in organizations show commercial acumen and business judgment; 48% are seen as driving change and innovation; and only 44% build talent for competitive advantage. Regarding rare leadership talent, in a study conducted by Kaiser Leadership Solutions , using a 360-degree instrument called the Leadership Versatility Index, they assessed over 24,000 senior managers from a variety of industries around the world. The results showed that less than 10% of the leaders in this study had the versatility and timing to be effective leaders. That means that more than 21,000 of the leaders studied do not have the versatility and timing to be truly effective in reading and responding to change with a wide repertoire of complementary skills and behaviors. Despite the studies that show that leadership skills and development are lacking, there has been a disturbing trend in organizations cutting L&D budgets and individual leaders putting the brakes on their own development. Or worse yet, ignoring the importance of leadership development altogether. A Short-Sighted Approach This lack of investment in leadership development is a short-sighted approach that ultimately hurts both the individual leaders and the organization. Effective leadership is crucial for the success of any organization, as leaders set the tone for the rest of the team and drive the company toward its goals. Additionally, in today's rapidly changing business landscape, it is more important than ever for leaders to be adaptable, agile, and able to navigate uncertainty and change. Investing in leadership development is key to ensuring that leaders have the skills and knowledge needed to thrive in this environment. Organizations must prioritize leadership development and allocate the necessary resources to support the growth and success of their leaders. By investing in leadership development, organizations can create a culture of continuous learning and improvement, drive innovation and growth, and ultimately, achieve sustainable success in the long run. Without ongoing development and training, leaders can stagnate in their skills and become less effective in their roles. This can lead to decreased employee engagement, lower productivity, and ultimately, a negative impact on the bottom line. Hitting the Pause Button Simply put, businesses and leaders are falling behind in preparing for the upcoming business challenges they will certainly face. This fact was shown in another leadership development survey of almost 18,000 human resource professionals and business leaders from around the world. The findings showed that 83% believe it is critical to the success of their organizations to develop leaders at all levels. Despite this, less than 5% of businesses have integrated leadership development at all levels. According to the Global Leadership Forecast 2021, “fewer than half of leaders feel they are effective in leadership skills that will be most critical for future success. This means that strong, versatile leaders are not being developed and prepared for future business challenges. As an executive coach, the most disturbing trend that I have seen in organizations, and individual leaders alike, is pumping the brakes on leadership development. Many of the excuses I have heard are that the L&D budget was cut, or we plan on revisiting leadership training next year, or my personal favorites, we are too busy to focus on that right now, or we simply don't have the time. With all the issues in poor employee retention, lack of leadership pipelines, poor talent selection, toxic bosses, and failing organizational culture (which is a direct result of poor leadership), it is no wonder you don't have the time. More than likely your time is now being spent chasing the tiger by the tail, putting out fires, and trying to keep your head above water. So, a quick question, do you think your excuses will help solve the problems? Or perhaps employing the age-old wisdom that if we just ignore it, it will go away. The trend of cutting L&D budgets was a concern even before 2024. In February 2023, we featured an episode on our podcast, Mainline Executive Coaching ACT, entitled, "Dear Employees, Your Budget Has Been Cut." It has been downloaded and listened to in over 70 countries and 750 cities worldwide and is still our top downloaded episode with continued daily downloads to this date. This goes to show that this is not just a concern for organizations in the United States, but globally as well. Quite frankly, this is an urgent situation that needs to change. Versatility Will Be The Key The need for leadership development is greater than ever. Over the past three years, business dynamics have shifted so dramatically, that the moment to maximize the benefits of strong and equipped leaders is now. Versatility in leadership skills is the master capability for leading in a VUCA world — that is, one characterized by volatility, uncertainty, complexity, and ambiguity. Versatility is, "the ability to read and respond to change with a wide repertoire of complementary skills and behaviors." For instance, some circumstances call for leaders to take charge, force difficult issues, and make tough decisions, while others require leaders to enable, support, and include people. Similarly, organizations sometimes need leaders to focus on their future strategic direction and at other times to focus on day-to-day operations and execution. Versatile leaders can seamlessly move between opposing behaviors. They can step up and make a call just as easily as they can bring people together to make group decisions. They can read the room and adjust their behavior accordingly, from asking questions and listening with an open mind to driving the team to achieve success. They can also envision change in big-picture terms and focus on the tactical details of implementing change. Versatile leaders can read the business, from playing out the chessboard five moves ahead to making the next move swiftly and with precision. Focusing on the Future It is time to stop pausing or ignoring leadership development altogether, or worse, simply putting someone in a leadership role because they are strong individual contributors in their jobs. The ripple effects of poor leadership have resulted in skyrocketing turnover rates, poor customer retention, disengaged employees, and high costs associated with replacing the employees who left. To be successful and competitive in the future, developing versatile, strong leaders is imperative. Organizations that value leadership development with a focus on building a strong leadership pipeline full of well-trained, versatile leaders will inevitably see greater innovation, stronger financial performance, highly engaged employees, and strong employee retention. Going forward, organizations and individuals alike need to engage or reengage in leadership development. However, do not make the mistake of bringing back leadership training that the company invested in 10 years ago. Or worse yet, relying on someone in the organization who participated in those programs in the past to take on the task of leadership development today. The days of marathon seminars focused on a particular leadership skill are in the past. Quite frankly, they did not work then, and certainly will not work now. A Training Evolution Leadership training has evolved and executive coaching is the sturdy bridge that connects individual leadership effectiveness with outstanding organizational performance . It can help organizations attract and retain exceptional leaders and help executive teams to improve their performance. In addition, online coaching platforms that feature ongoing, bite-sized, dynamic, and hybrid training sessions with accompanying implementation tools coupled with one-on-one coaching have proved to be very effective. Intelligent Leadership Online Academy (ILOA) which was created during the pandemic by the world's top executive coach, John Mattone is one such platform that is trusted and respected by the top executives and technologists at some of the world's top companies. Wrapping Up Today's leaders need more proficiency than ever before. No one knows what our disruptive world will throw at leaders next. However, if the past three years are any indication of what lies ahead, organizations and individuals must be prepared to face those challenges. Those organizations with strong, versatile leaders who possess a wide and balanced repertoire of complementary competencies, skills, and behaviors, combined with the wisdom to know which one to use in a given situation, are likely to be most effective at leading their people, teams, and organizations through the turbulence. And we know that this meta-competency — versatility — can be learned, coached, and developed. Reach out to me here to find out more about executive coaching, and ILOA. Or schedule time with me here for a discussion on how your future and the future of your organization can look. About the Author Rich Baron holds the esteemed title of Master Certified Intelligent Leadership Executive Coach at John Mattone Global. With a wealth of expertise spanning over 25 years, he has excelled in various realms such as cultural transformation, operational leadership, executive positions, and coaching individuals from emerging leaders to CEOs. Together with his coaching partner, Maikel Bailey, Rich hosts "Mainline Executive Coaching ACT," a podcast acknowledged by Feedspot in 2023, and again in 2024 as the foremost Executive Coaching Podcast worldwide. This recognition is based on an evaluation of numerous podcasts on the internet, taking into account factors such as web traffic, social media followers, and timeliness. The podcast enjoys a substantial following in more than 60 countries and 550 cities across the globe.
With Thanksgiving approaching in the United States, it’s a perfect time to reflect on the values that enrich our lives, no matter where we call home. Leadership, in particular, holds a unique power to shape our communities, organizations, and personal growth. In this blog, I want to celebrate the transformative nature of leadership, express gratitude for its impact, and honor the remarkable leaders who inspire and guide us. Here are a few ways leaders can express gratitude and show appreciation to the people who make a difference in their lives. Visionaries Who Inspire Leadership often begins with a clear vision. We are grateful for the visionary leaders who inspire us to dream big, challenge the status quo, and defy conventional wisdom. These trailblazers ignite passion and propel us toward a future that seemed unreachable before. Their visionary approach gives us hope and motivation to achieve more. Empathetic Guides Possessing empathy and understanding is a hallmark of exceptional leadership. Thanksgiving reminds us to appreciate the leaders who genuinely care about their team members' well-being. They create an environment that fosters collaboration, empathy, and open communication. These leaders go the extra mile to understand the needs of their team and provide the necessary support, enabling individuals to flourish both personally and professionally. Leading by Example Leaders play a crucial role in creating a positive and appreciative culture within their teams. By expressing gratitude, both publicly and privately, towards their employees, leaders can inspire their team members to reciprocate and appreciate one another's efforts as well. This creates a cycle of appreciation and gratitude within the team, which, in turn, creates a sense of trust and loyalty within the team. When employees feel appreciated by their leaders, they trust that their efforts are valued and recognized. This trust fosters a positive work environment where team members feel comfortable and supported. Be Thankful for Your Team As a leader, it is important to recognize and accept that you cannot be an expert at everything. No one can possess all the skills and knowledge required for every task or project. Instead, it is crucial to identify the gaps and seek out individuals who have the talent and passion to excel in those areas. When you surround yourself with talented individuals, each specializing in their respective fields, you create a dynamic team that can tackle challenges effectively and produce exceptional outcomes. Be thankful for those people on your team who bring their best every day. Their expertise and passion will bring new perspectives, innovative ideas, and a high level of proficiency to the table. Be Thankful You are a Leader Being a leader is indeed a privilege, as it allows leaders to have a direct impact on the future and success of their followers. For this reason, we must all learn to be servant leaders. By adopting a servant leadership approach, the leader takes on the responsibilities of a coach, mentor, and enabler. They guide and support their team members, helping them to develop their skills and achieve their goals. The focus is on empowering others and creating an environment where everyone can thrive. The beauty of servant leadership lies in the fact that when leaders prioritize the success of their team, they ultimately find success themselves. By investing in the growth and development of their followers, leaders cultivate a motivated and engaged team that produces outstanding results. This is something that every leader can truly be thankful for. Wrapping Up As leaders, this is a wonderful time of year to be thankful and to begin the habit of saying, "Thank You," so you can say it all year. Saying those two powerful words can mean the world to those on your team who have worked hard and deserve your admiration and sincere gratitude. The simple act of expressing your thankfulness and gratitude with these two simple words will ensure your team feels recognized and appreciated for their work. When we strive to be true servant leaders throughout the year we have the opportunity to instill worth in all those people around us. For this reason, leadership is not just a privilege to be thankful for, but a calling all leaders have the responsibility to live up to. As we celebrate this season of Thanksgiving—a time to express gratitude for the blessings in our lives—let us also extend this spirit of thankfulness to our superiors, colleagues, clients, customers, and all who support our professional journey. As Thanksgiving gives way to the rest of the holiday season, let’s strive to carry this attitude of gratitude into our daily lives, embracing it fully in our roles as leaders and managers. Happy Thanksgiving to all of you who are reading this. I am truly thankful for your support and wish you all the best! About the Author Rich Baron is the Director of Culture Transformation and Certification as well as a Master Certified Intelligent Leadership Executive Coach at John Mattone Global. With a wealth of expertise spanning over 25 years, he has excelled in various realms such as cultural transformation, operational leadership, executive positions, and coaching individuals from emerging leaders to CEOs. Rich hosts "Mainline Executive Coaching ACT," a podcast acknowledged by Feedspot in 2023, and 2024 as the foremost Executive Coaching Podcast worldwide. This recognition is based on an evaluation of numerous podcasts on the internet, taking into account factors such as web traffic, social media followers, and timeliness. The podcast enjoys a substantial following in more than 70 countries and 750 cities across the globe.
