Ian is an entrepreneur, Founder and CEO of Ledgr, a national subscription corporate accounting service and business advisory company.
In the world of organizational growth and leadership, there’s a specific category of employees that can discreetly erode the foundations of your company culture. These individuals, referred to as “toxic employees,” can often go unnoticed until their behaviors significantly impede the positive momentum and values within a team. Addressing them promptly isn’t just a matter of managerial diligence. It’s essential for the very lifeblood of your organization.
Defining Toxic Employees
Toxicity in the workplace isn’t just about overtly negative behaviors. It’s also about subtle, slow-burning actions and attitudes that can detract from a company’s core values and the collective spirit of the team. These behaviors can manifest in various ways.
• Gossip: Spreading rumors or backbiting can erode trust, which is foundational to any successful team.
• Negative attitude and pessimism: While constructive criticism is valuable, relentless negativity can dampen enthusiasm and impede innovative thinking.
• Disrespect: Disrespect toward peers or leadership isn’t just about overt rudeness. It can manifest in passive-aggressive behaviors, constant challenges without constructive solutions or a disregard for others’ time and contributions.
As teams grow and evolve, spotting these behaviors becomes a challenge. In smaller teams, every new recruit significantly influences the team’s dynamic. If one person starts exhibiting toxic behaviors, it’s like introducing a virus into an otherwise healthy body. The ripple effects are immediate and palpable.
For example, when my company had only three employees, I reminded everyone that a new team member would represent 25% of our culture. This made the hire incredibly important but also meant spotting negative behavior would be obvious. I had seen the importance of addressing toxic behavior in one of my previous leadership roles in an organization of 75 employees. It became clear that something was beginning to erode the team’s cohesion. A small group of employees, led by an individual with a toxic influence, organized gatherings called “venting sessions.” Although the intent might have initially been benign, these meetings devolved into unconstructive complaining. To make matters worse, the orchestrators of these gatherings deliberately excluded those with the authority to address their concerns and resolve the issues at hand.
The corrosive effects of these meetings began to ripple through the organization before they could be formally identified and confronted. By the time the issue came to light, a culture of undermining had already taken root, which normalized the toxic behavior. The consequences were immediate: Productivity plummeted, and the collective morale of the team suffered a major hit. What was particularly upsetting was how quickly this atmosphere bled into the broader organization and ultimately impacted operational efficiency and the energy of the entire company.
The Subtle Manifestations Of Toxicity
Not all toxins come with warning labels. Some employees, while not necessarily ill-intentioned, can become productivity black holes who drag their colleagues down through inefficient work styles or indecisiveness. It’s essential to differentiate between someone having a bad day and someone whose consistent behavior saps the vitality and momentum of those around them. In many companies, I find people ignore early warning signs in the hope that the issue is the former. However, the best approach in either case is to confront the issue head-on.
If someone is having a bad day, addressing the issue with them and giving them space is likely to help them shift their attitude. This might possibly alleviate the concerns altogether. Conversely, if this is an issue of ongoing toxicity, it will be easier to address immediately since the severity will likely expose itself once discussed out loud. It is always harder to spot toxicity from a distance. Get in front of your people and help them. Don’t wait for them to come to you.
Keep in mind that toxic employees aren’t bad people. What’s deemed toxic in one environment might be considered acceptable or even productive in another. It’s the context and the cultural nuance of the company that determines toxicity. An employee who challenges the status quo might be a misfit in a hierarchical corporate environment but an asset in a disruptive startup. The label “toxic” isn’t a universal judgment of the individual but a commentary on how they fit within a specific organizational context.
Addressing toxic employees promptly, whether through retraining, repositioning or, in many cases, removal, is imperative. When toxicity is allowed to fester, team members can feel vulnerable, undervalued or sidelined. Protecting their team should be the paramount duty of every leader.
In most of my experiences, toxic behavior doesn’t improve over time, even when addressed. If someone’s behavior is identified clearly as toxic to your company, you might not be able to reshape that person’s approach to work and life in a short enough time to mitigate the damages. When my companies are small, I advise my managers to make these decisions quickly, and when the toxic behavior is severe, I ask them to ask themselves three questions: Do I think this person can change in the next two weeks? Could I identify it if they did in such a short span of time? Do I think they will change? All three questions need to be a yes, or I believe this person is too high-risk and should be dismissed.
The importance of hiring the right fit for your organizational goals and culture cannot be overstated. The adage, “hire slowly, fire quickly,” while sounding harsh, encapsulates the essence of protecting your team and organizational ethos. Your hiring process should be rigorous, deliberate and aligned with the company’s values. On the flip side, when a misalignment becomes evident, leaders should act decisively to prevent the spread of toxicity.
In the end, the collective spirit, energy and values of an organization are its most significant assets. In the quest to protect and nurture these, there can be no compromises. It’s not just about the success of the organization but also about the well-being and growth of every individual within it.
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