What is toxic company culture and what can you do about it?

The recent allegations about ITV have put toxic workplace culture back in the headlines. But what does an unhealthy company culture look like? What is the impact and what can you do to turn things around? While a toxic work environment means different things to different people, one thing is clear: it’s never a good thing for them or the business.

The importance of workplace culture

So what is company culture? Think values, behaviour, atmosphere, standards and attitudes. Put simply, it’s how we act and respond to each other at work.

In companies with a positive culture, where staff are valued and respected by management and each other, where they feel trusted and supported, have opportunity for growth, and have a healthy work–life balance, everybody benefits. Productivity and job satisfaction are high, absenteeism/presenteeism and staff turnover are low. But it only takes one of those things to break down for the culture to suffer.

Signs of a bad work culture and how to fix it

When a company environment is dominated by attitudes, practices and management styles that perpetuate harmful habits and engender conflict among staff, the workplace becomes hostile for employees and damaging to the business.

Below are just some of the problems encountered in workplaces where relationships, respect and trust break down, along with the impact they have on the people and business, and a suggestion for how they might be resolved.

High staff turnover

A major warning sign that something is not right with company culture is a high attrition rate. When staff don’t stay in post for long, it leads to unsettled, disjointed teams and a lack of cohesion and team spirit. Recruitment costs go through the roof to try to reverse the talent drain.

Solution: If your company is experiencing high turnover, it’s important to find answers. Why are people leaving? Be sure to set up exit interviews where you can gently elicit the reasons for them moving on. Ask them to identify the problem areas, so that you can target the pain points, but also ask them what works, so that you know what the company can build on.

Bad management

With 43% of workers in a recent poll having resigned from a job due to bad management, it’s clear how important a good working relationship between staff and managers is for a healthy working environment. The same poll cited the top four attributes of a poor management style as failing to listen (49%), being unapproachable (47%), treating members of the team differently (43%) and shouting at co-workers (42%).

Solution: Remember that good company culture starts at the top. Lead by example and make sure your leadership team are following suit. Create opportunities for staff to share any concerns in a safe, private forum, perhaps with regular 1-2-1s or by having an open-door policy for your line managers.

Blame and bullying behaviours 

Mistakes happen. They can’t always be avoided. But what can change is how people respond to them. Bad managers create a toxic workplace environment by calling out their workers in public over errors that have been made, embarrassing them in front of their co-workers. This type of behaviour shows disrespect and perpetuates a culture of blame and shame, which poisons the workplace and the relationships within it.

Solution: Be sure that you and your managers are giving difficult feedback in private and praise in public to encourage good communications. To maintain a healthy working environment, to develop trust and confidence among staff, it is vital to demonstrate that bullying is not tolerated.

Poor work–life balance

Another sign of a toxic workplace is that long hours are not just tolerated but are expected or coercively enforced. This could be a symptom of overworked staff with too much on their plate, line managers setting unrealistic expectations, poor time management or a culture that values long hours as a sign of commitment and dedication.

An Institute for Employment Studies survey found that construction and transport were two of the sectors with the highest incidence of long working hours, and that operative and assembly workers were among the occupations most likely to work for longer.

The reasons for working long hours will differ from person to person, company to company, but common answers might include the pressure to meet a deadline or complete tasks, the need for extra compensation, or the fear of losing a position.

Solution: Whatever the reason, long hours are generally not advised, especially over prolonged periods. Overwork can impact mental health and physical wellbeing, lower job satisfaction, cause depression and put strain on personal relationships. It is also likely to reduce productivity. Line managers can help by supporting staff to manage their time, prioritise tasks and plan for realistic capacity. They can build a culture of self-care by not only making sure they’re seen to take regular breaks and leave on time, but also encourage their staff to do the same.

Leadership shapes and drives company culture.

In conclusion, it is evident that leadership plays a paramount role in shaping and driving company culture. A strong and positive company culture is the result of intentional and effective leadership. It is the key driver of employee engagement, productivity, and overall business success. Organisations that recognise the significance of leadership in shaping culture are more likely to thrive in an increasingly competitive marketplace.

At Key Appointments, we have formed great relationships with HR and Leadership & Management Consultants who work with Business Owners and Senior Leadership Teams to help them create a great company culture. If you are looking for support in this area, please get in touch with Keeley Edge, Managing Director and Keeley will introduce you to one of our contacts keeley@key-appointments.co.uk  / 07943 116559

If you are looking for help with recruitment to ensure that you get the right people on board who have the same values, call us on 0844 504 4666 or drop us a line at info@key-appointments.co.uk.