Toxic Culture Is Driving the Great Resignation: How to Fix It

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29 Jun 2023

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Are you losing your best employees to the Great Resignation? Do you wonder why they are leaving and what you can do to retain them? If so, you are not alone. According to a recent Gallup survey, more than 40% of workers in the U.S. are considering quitting their jobs in the next year. The main reason? Toxic culture.

In this article, we will explore what toxic culture is, how it affects employee engagement and performance, and what you can do to create a positive and healthy workplace culture that attracts and retains top talent.

What is Toxic Culture and How It Started

Toxic culture is a term that describes a work environment that is harmful to employees’ well-being, morale, and productivity. It can manifest in various ways, such as:

Lack of trust, respect, and communication among employees and managers
Micromanagement, excessive control, and unrealistic expectations
Bullying, harassment, discrimination, and favoritism
Blame-shifting, scapegoating, and lack of accountability
Burnout, stress, and anxiety
Low engagement, motivation, and creativity

Toxic culture is not a new phenomenon. It has been around for decades, but it has become more prevalent and visible in the wake of the COVID-19 pandemic. The pandemic has exposed many of the flaws and weaknesses of traditional work models and practices, such as:

Rigid hierarchies, silos, and bureaucracy
Inflexible policies, procedures, and rules
Resistance to change, innovation, and diversity
Disregard for employee health, safety, and well-being
Focus on short-term results, profits, and efficiency

These factors have created a disconnect between employees’ needs and expectations and employers’ offerings and values. As a result, many employees have become dissatisfied, disillusioned, and disengaged with their work and their organizations.

How Toxic Culture Works and What Makes It Different

Toxic culture is not just a matter of individual behaviors or incidents. It is a systemic problem that affects the entire organization and its performance. Toxic culture works by creating a vicious cycle that reinforces itself over time. Here is how it works:

Toxic leaders set the tone for the organization by modeling negative attitudes and actions. They create a climate of fear, pressure, and uncertainty that trickles down to all levels of the organization.
Toxic employees follow suit by adopting or adapting to the toxic norms and values. They either become perpetrators or victims of toxic behaviors or both. They also lose their sense of purpose, passion, and pride in their work.
Toxic outcomes emerge as a result of toxic culture. These include high turnover, low retention, poor quality, low customer satisfaction, reduced innovation, increased errors, conflicts, and lawsuits.

Toxic culture is different from other types of organizational problems because it is pervasive, persistent, and pernicious. It affects every aspect of the organization: its vision, mission, goals, strategies, processes, structures, systems, policies, practices, people, and culture. It also resists change because it is deeply ingrained in the organizational DNA.

Why Toxic Culture Matters and What Are Its Implications

Toxic culture matters because it has serious implications for both employees and employers. For employees, toxic culture can lead to:

Physical health problems such as headaches, insomnia, fatigue, and illness
Mental health problems such as depression, anxiety, and PTSD
Emotional health problems such as low self-esteem, anger, and resentment
Career health problems such as reduced performance, productivity, and potential

For employers, toxic culture can lead to:

Financial costs such as increased absenteeism, turnover, recruitment, training, and litigation
Reputation costs such as decreased brand image, loyalty, and trust
Competitive costs such as decreased market share, growth, and innovation

In short, toxic culture can undermine the success and sustainability of any organization.

What Is Its Future and What Are Its Prospects

The future of toxic culture depends on how organizations respond to it. There are two possible scenarios:

Scenario 1: Organizations ignore or deny toxic culture and continue with business as usual. They hope that things will get better on their own or that employees will adapt or leave. They focus on short-term fixes rather than long-term solutions.
Scenario 2: Organizations acknowledge and address toxic culture and commit to creating a positive and healthy workplace culture. They recognize that culture is a strategic asset and a competitive advantage. They focus on long-term changes rather than short-term patches.

The prospects of toxic culture are bleak in scenario 1 and bright in scenario 2. In scenario 1, organizations will struggle to cope with the changing demands and expectations of the post-pandemic world, such as:

More empowered and vocal employees who seek better work conditions and opportunities
More informed and discerning customers who demand higher quality and value
More stringent and transparent social and environmental standards and regulations
More intense and dynamic competition and disruption from new entrants and innovators

In scenario 2, organizations will enjoy more opportunities and benefits in the post-pandemic world, such as:

Increased employee engagement and retention
Increased customer satisfaction and loyalty
Increased social and environmental impact and value
Increased innovation and differentiation

The choice is clear: organizations that want to survive and thrive in the future need to eliminate toxic culture and embrace positive culture.

What Are the Challenges It Faces and How It Addresses Them

Eliminating toxic culture and creating positive culture is not easy. It requires time, effort, and resources. It also faces many challenges, such as:

Resistance from toxic leaders and employees who benefit from or are comfortable with the status quo
Inertia from organizational structures and systems that are designed to maintain stability and continuity
Complexity from organizational diversity and dynamics that create multiple perspectives and interests
Uncertainty from external factors and forces that influence organizational performance and direction

To address these challenges, organizations need to adopt a holistic and systematic approach that involves four steps:

Assess: Conduct a comprehensive diagnosis of the current state of the organizational culture, identify the root causes of toxicity, measure the impact of toxicity, and benchmark the best practices of positive culture.
Align: Create a compelling vision of the desired state of the organizational culture, define the core values and principles of positive culture, communicate the benefits of positive culture, and secure the commitment and support of all stakeholders.
Act: Implement a comprehensive plan of action to transform the organizational culture, design and execute interventions to change behaviors, attitudes, norms, values, processes, structures, systems, policies, practices, etc., monitor and evaluate the progress and outcomes of the interventions, and celebrate the successes and learn from the failures.
Advance: Sustain and enhance the positive organizational culture, embed the positive values and principles into the organizational DNA, reinforce the positive behaviors and outcomes through rewards and recognition, review and revise the interventions as needed, and continuously seek feedback and improvement.

Conclusion

Toxic culture is a serious problem that affects many organizations today. It has negative consequences for both employees and employers. It also threatens the survival and success of organizations in the post-pandemic world.

However, toxic culture is not inevitable or irreversible. It can be eliminated and replaced by positive culture. Positive culture is a powerful solution that can benefit both employees and employers. It also enables organizations to thrive in the post-pandemic world.

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Thank you for reading!