8 signs of a toxic workplace culture (and how to fix it)

Nobody wants to believe that they are responsible for creating a toxic workplace culture – from leadership down to entry-level employees. No matter the department or the role, the average individual shows up to work intending to do a good job and maintain a friendly, collaborative environment with their peers.

But according to Monster.com‘s October 2025 Mental Health in the Workplace survey, 80% of 1,100 respondents reported working in a toxic environment – up from 67% in 2024.

The repercussions of toxic atmospheres are far-reaching – diminished employee wellbeing, increased turnover and decreased business performance. For HR leaders, recognizing the signs of toxicity early can be crucial in fostering a thriving team. This post explores the key warning signs of a toxic company culture and offers actionable insights to create a healthier, more supportive workplace for everyone.

What is a toxic workplace culture?

A toxic workplace culture is an environment characterized by harmful behaviors, poor communication and a lack of trust among employees and management. You’ll often find persistent negativity, environments where individuals feel undervalued, disrespected or fearful. Common traits include micromanagement, office gossip, cutthroat competition, and a focus on blame, rather than collaboration.

Unlike occasional workplace challenges that arise naturally over time, toxic cultures are marked by systemic issues that consistently undermine employee morale and mental health. This negativity can lead to high turnover rates, decreased productivity and damage to the organization's reputation, ultimately affecting overall business performance.

How does a toxic workplace culture harm an organization?

A toxic work culture can significantly harm an organization in both tangible and cultural ways. The effects ripple throughout the entire organization, impacting individual employees – but also the overall operations and success of the business. These forms of toxicity create an atmosphere of distrust and disengagement, ultimately leading to a decline in both morale and performance across teams.

1. High turnover rates: Employees are more likely to leave a toxic environment, leading to increased recruitment and training costs, as well as the loss of valuable talent.
2. Decreased productivity: Disengaged employees in a negative atmosphere often exhibit lower morale and motivation, resulting in reduced overall productivity and performance.
3. Increased absenteeism: The stress associated with a toxic culture can lead to higher absenteeism as employees take more sick days to escape the hostile environment.
4. Damage to employer brand: A reputation for having a toxic culture can deter potential hires, making it difficult to attract top talent. Negative reviews on platforms like Glassdoor and social media can further harm an organization's image.
5. Poor collaboration and communication: Toxic environments often breed mistrust and poor communication, leading to misunderstandings, conflicts, and a lack of teamwork.
6. Decreased employee wellbeing: The stress and anxiety stemming from a toxic culture can negatively impact employees' mental and physical health, leading to burnout and reduced engagement.
7. Stifled innovation: Fear of criticism or retribution can prevent employees from sharing ideas or taking risks, ultimately stifling innovation and creativity within the organization.

Combined, these factors can translate into significant financial losses and decreased competitiveness in the marketplace. Organizations may find it increasingly difficult to achieve strategic goals, as a disengaged workforce is less likely to contribute to collective objectives. And the long-term repercussions of a toxic culture can lead to a cycle of negativity, making it imperative for leaders to proactively address and rectify cultural issues before they escalate further. By investing in a healthier workplace culture, organizations can unlock the full potential of their employees, enhancing not just individual performance but the overall success of the business.

8 signs of a toxic company culture

Identifying a toxic workplace culture can be crucial for fostering a healthy environment where employees can thrive. Toxic cultures are often marked by specific harmful behaviors and dynamics that make the workplace feel hostile or uncomfortable.

1. Micromanagement

One of the most telling signs of a toxic culture is micromanagement. When leaders constantly oversee and control every detail of their employees' work, it stifles creativity and autonomy. This level of oversight can leave employees feeling undervalued and distrusted, diminishing their motivation and sense of ownership over their tasks.

2. Low trust

A lack of trust among team members can poison the work environment. When employees feel they can’t rely on each other or their leaders, it fosters an atmosphere of suspicion and fear. This low trust can lead to inefficiencies and a reluctance to share ideas or collaborate, ultimately hindering the organization's progress.

3. Office cliques and gossip

If you notice cliques forming and rampant gossip in the workplace, it’s a red flag. These behaviors can create divisions among teams, foster resentment and make certain employees feel excluded. When people focus more on social dynamics than on their work, it can breed an environment of negativity and disengagement.

4. Cutthroat internal competition

While a little competition can drive performance, cutthroat internal competition can be harmful. When employees feel they must undermine or isolate their colleagues to get ahead, it erodes teamwork and cooperation. This relentless pursuit of individual success can lead to burnout and further exacerbate a toxic culture.

5. High turnover rates

Frequent turnover is often a clear indication of deeper cultural issues. If employees are leaving at a rapid pace, it reflects dissatisfaction with the working environment. High turnover not only disrupts team dynamics but also incurs significant costs related to hiring and training new staff.

6. Work-Life imbalance

When an organization does not respect employees' boundaries between work and personal life, it can lead to severe work-life imbalances. Employees who are expected to be available around the clock can experience burnout and stress, which detracts from overall productivity and morale.

7. Communication breakdowns

Effective communication is vital for any organization, and breakdowns can signal underlying toxicity. Poor communication leads to misunderstandings, frustration, and a lack of clarity regarding roles and responsibilities. When team members can’t communicate openly, it creates a barrier to collaboration and innovation.

8. Lack of employee recognition

In a healthy work culture, employees feel acknowledged for their contributions. A lack of recognition can lead to feelings of being undervalued, which can foster disengagement. When employees' efforts go unnoticed, they are less likely to be motivated to perform at their best, diminishing overall morale.

How to address and prevent toxic workplace culture

Identifying toxicity in the workplace is just the beginning; taking decisive action to address and prevent it is what truly protects employees and strengthens the foundation of organizational culture. Leaders at all levels, particularly HR professionals and managers, play a pivotal role in fostering a healthier and more supportive work environment. Here are some effective strategies to combat toxicity and promote a positive workplace:

1. Use surveys and data to diagnose issues

Regularly administering employee surveys can help organizations gauge the health of their culture. Collecting data on employee perceptions and experiences provides valuable insights into potential areas of toxicity. By identifying specific issues, leaders can develop tailored strategies to address concerns and enhance the overall work environment.

2. Invest in leadership development and accountability

Strong leadership is essential for cultivating a positive culture. Investing in leadership development programs equips managers with the skills needed to foster trust and collaboration within their teams. Moreover, holding leaders accountable for their behavior creates a culture of responsibility, ensuring that positive practices are maintained at all levels.

3. Establish clear expectations and policies

Setting clear guidelines and expectations fosters an environment of fairness and consistency. When employees understand the organization’s values and behavioral standards, they are more likely to align with them. Providing transparent policies helps mitigate misunderstandings and promotes a sense of security within the workplace.

4. Foster open communication and psychological safety

Creating an environment where open communication is encouraged is crucial for preventing toxicity. Employees should feel safe expressing their thoughts, ideas, and concerns without fear of retribution. Establishing psychological safety cultivates trust and openness, leading to stronger collaboration and innovation.

5. Prioritize recognition, wellbeing and work-life balance

Recognition plays a key role in enhancing employee morale. By prioritizing employee wellbeing and work-life balance, organizations demonstrate that they value their workforce as individuals, not just as contributors. Implementing wellness programs and initiatives that promote work-life balance can lead to a more engaged and satisfied team.

6. Track progress and stay consistent

Addressing toxic culture is not a one-time effort; it requires ongoing commitment and monitoring. Regularly tracking progress through feedback, metrics, and follow-up surveys can help leaders stay informed on how initiatives are being received. Consistency in applying cultural values and practices ensures that positive changes are reinforced over time.

Strengthen your workplace culture with Reward Gateway | Edenred

Investing in the right tools and resources is essential for cultivating a positive workplace culture. Reward Gateway | Edenred offers innovative solutions that empower organizations to enhance the employee experience through multi-directional recognition and reward, employee wellbeing, internal comms, surveys, commuter benefits and more. Create meaningful experiences that recognize individual contributions and foster a sense of belonging, and host it all on our employee experience platform.

Schedule a demo with one of our employee experience experts and let us help you make your corner of the world a better place to work.