A toxic culture can silently permeate an organization, eroding productivity, creativity, and morale.
A report by SHRM (Society for Human Resource Management) indicated that nearly one in five Americans has left a job in the past five years due to bad company culture. The estimated cost of this turnover is $223 billion.
As an executive leadership coach, I have helped leaders understand that a toxic culture is one of the most significant threats to their organization’s success. Here are 7 reasons why leaders should worry about toxic cultures:
High turnover: Toxic cultures drive away top talent. Employees who feel undervalued, mistreated, or unsupported are more likely to leave.
Low productivity: In a toxic environment, employees are less motivated and engaged. They may do the bare minimum rather than going above and beyond.
Stifled innovation: Fear of failure or criticism in a toxic culture can stifle creativity and risk-taking. Employees are less likely to suggest new ideas.
Reputational damage: Toxic cultures can lead to negative publicity and damage an organization’s reputation. This can impact customer trust and loyalty.
Increased absenteeism: Employees in toxic environments are more likely to experience stress, burnout, and mental health issues, leading to increased absenteeism.
Legal liabilities: Toxic behaviors such as discrimination, harassment, or unethical practices can expose an organization to legal risks and financial penalties.
Negative impact on customers: A toxic internal culture can spill over into interactions with customers, leading to poor service and lost business.
Leaders must actively work to create and maintain a positive, inclusive, and supportive culture. By prioritizing employee well-being, fostering open communication, and addressing toxic behaviors swiftly, leaders can cultivate a culture that drives success.
Lead from Within: Toxic culture is a silent killer of organizations. As a leader, make it your mission to create a culture that brings out the best in your people.
#1 N A T I O N A L B E S T S E L L E R
The Leadership Gap
What Gets Between You and Your Greatness
After decades of coaching powerful executives around the world, Lolly Daskal has observed that leaders rise to their positions relying on a specific set of values and traits. But in time, every executive reaches a point when their performance suffers and failure persists. Very few understand why or how to prevent it.
Additional Reading you might enjoy:
- This is What Happens When You Build a Successful Culture
- How to Be Successful in a Toxic Culture
- The Best Way to Change a Toxic Culture
- In 4 Simple Steps the Best Leaders Improve their Culture
- How to Foster a Culture of Innovation and Creativity in Your Team
- 5 Successful Ways to Build a High-Performance Team Culture
- The Best Way To Improve Your Company’s Culture
Of Lolly’s many awards and accolades, Lolly was designated a Top-50 Leadership and Management Expert by Inc. magazine. Huffington Post honored Lolly with the title of The Most Inspiring Woman in the World. Her writing has appeared in HBR, Inc.com, Fast Company (Ask The Expert), Huffington Post, and Psychology Today, and others. Her newest book, The Leadership Gap: What Gets Between You and Your Greatness has become a national bestseller.