MWA - Merlin Wright Associates

Most would agree that workplace culture is a crucial aspect of attracting and retaining exceptional talent and driving productivity – so why do so many companies have a toxic atmosphere?

A negative company culture can undermine employee morale and result in high turnover rates, ultimately diminishing organisational success. For leaders, it’s essential to be vigilant for signs of a toxic culture and take steps to cultivate a positive environment. In this week’s article, we outline the steps you can take to ensure a healthy team atmosphere.

Identifying a Toxic Workplace

Before you can address a toxic culture, you must first recognise the signs of one. There are several key indicators that a workplace might be toxic, including:

• High Turnover Rates: If employees are frequently leaving or becoming disengaged, it may be a sign of a deeper issue within the workplace culture.
• Poor Communication: When communication is sparse, unclear, or deliberately misleading, employees struggle to understand expectations or feel uninformed about key decisions. If you are seeing multiple issues concerning miscommunications from a team, it might be time to look more closely at the problem.
• Excessive Stress and Burnout: A culture that demands long hours without support, fails to recognise achievements, or punishes failure rather than promoting growth can cause widespread burnout.
• Negative Attitudes and Gossip: In toxic workplaces, gossip is rampant, and negativity often prevails over positivity. Employees may be more focused on tearing each other down than collaborating or celebrating successes.
• Lack of Recognition and Development: If employees feel unappreciated or stagnant in their roles, morale will suffer. A toxic culture often fails to prioritise employee growth or acknowledge hard work.

Fixing a Toxic Culture

Once a toxic culture is identified, decisive action is vital. Transforming workplace culture requires time, transparency, and a commitment to change. You might begin with these steps:

• Acknowledge the Issue: It is essential for leaders to recognise the problem and acknowledge it openly. Transparent communication from the top sets a tone of accountability across the company.
• Invite Feedback: Gather input from employees at all levels of the organisation through surveys, interviews, or focus groups. Understanding the root causes of toxicity is crucial to implementing effective solutions. In order to get honest feedback, it’s important to include an anonymous option.
• Implement Clear Communication: Rebuild trust by improving communication. Regular meetings, clear expectations, and open-door policies can help foster an environment where employees feel heard and informed.
• Create Strong Leadership: Toxic cultures often stem from poor leadership. Invest in leadership development programs to equip managers with the skills needed to operate with more empathy and clarity.
• Set Healthy Boundaries and Priorities: Overwork can lead to burnout, so it’s important to establish clear expectations for work-life balance. Ensure employees feel supported and encouraged to set reasonable boundaries for themselves.

Building a Healthy Company Culture

While ‘patching up’ a toxic culture is essential, the ultimate goal is to create a workplace where employees thrive. Establishing a new work environment requires ongoing effort and planning. Here are our tips for building a healthy future atmosphere:

• Define Your Core Values: Strong company cultures are grounded in clear, shared values which guide strategy and day-to-day operations. Ensure that your values are communicated clearly and modelled consistently by leadership.
• Foster Collaboration: A healthy workplace encourages collaboration over competition. Encourage employees to take ownership of projects, share ideas, and work cross-functionally to achieve common goals.
• Offer Development Opportunities: A culture that invests in employees’ growth is much more likely to thrive. Offer professional development programs, mentorship opportunities, and career growth pathways. This both improves morale, and aligns individual growth with the company’s success.
• Celebrate Successes: Recognising and rewarding employees for their hard work reinforces a positive culture. Public recognition, team celebrations, and acknowledgment of milestones help build a sense of pride and ownership over organisational successes.
• Maintain Work-Life Balance: As important as productivity is, employees need time to recharge. Respecting personal time and promoting flexibility can help reduce burnout and foster long-term loyalty. For more tips on promoting strong work-life balance, read our “Busyness Culture” article linked above.
• Ensure Transparency: Regular communication from leadership about company goals, challenges, and performance goes a long way towards building trust, and  employees to contribute to the organisation’s success.
• Nurture Employee Wellbeing: A thriving culture prioritises employee wellbeing—physically, emotionally, and mentally. Offering support for mental health, creating a safe space for feedback, and maintaining a healthy work environment should be at the core of any positive workplace culture.

Toxic workplaces have far-reaching consequences, from decreased employee wellbeing to high turnover. However, by making an intentional effort, leaders can reverse a toxic culture and build a healthier, more supportive environment. Acknowledging the signs of toxicity, taking proactive steps to address them, and building a culture based on trust and respect sets the stage for long-term success. A positive company culture is not just good for employees; it’s a competitive advantage that drives individual and organisational performance.