Do You Have a Toxic Workplace: What Can Organizations Do to Fix It?

Introduction

We’ve heard of the phrase “toxic workplace,” but it’s not always obvious when you’re in one—especially if you’ve grown used to daily stress, drama, and dysfunction. A toxic workplace is one where poor leadership, unchecked gossip, bullying, favoritism, often without accountability, becomes the norm.

Based on the 2025 iHire Toxic Workplace Trends Report, nearly 75% of surveyed employees in the U.S. reported experiencing a toxic workplace environment, and 87% said it had a direct impact on their mental health. This report, based on a survey of 2,285 U.S. workers and employers, sheds light on the widespread presence of negative work cultures across the country. 

Toxicity fosters fear, not trust. Employees hesitate to raise concerns or share thoughts, leading to chronic stress, burnout, and disengagement. This type of culture is 10X more likely to drive attrition which translates to nearly $50 billion annually in turnover costs. If left unchecked, it damages the employer’s brand and blocks talent pipelines, as employees share experiences across social media platforms and their networks.

3 Root Causes of a Toxic Workplace

1. Leadership Behaviors that Erode Trust

• Verbal abuse and public shaming by leaders: These behaviors send a dangerous message that disrespect is acceptable if it comes from the top. If leaders want accountability and collaboration, it must start with how they treat their people.

• Micromanagement and lack of autonomy: These behaviors may seem like a way to ensure quality but, they signal a lack of trust. They rob people of the freedom to think, explore, and take ownership for their work.

• Favoritism and nepotism: Favoritism often hides in the form of preferential treatment, protecting “insiders”, or advancing those from similar backgrounds, regardless of competence. Nepotism is more overt, such as hiring a relative instead of a more qualified candidate. These practices send a message that talent and performance don’t matter.

• Refusal to take accountability: Managers who refuse to take ownership when things don’t go as planned demonstrate responsibility is optional at the top. These behaviors build a tone that employees mirror. When leadership sets the wrong example, the rest of the culture follows.

2. Culture that Normalizes Dysfunction

Whether it’s bullying, gossiping or “stirring the pot”, these behaviors create an intimidating workplace and erode psychological safety which creates a toxic culture. Over time, word spreads that the workplace is hostile, which may lead to employment and legal claims from affected employees. If the harassment or discrimination is severe or pervasive enough to create an abusive or offensive atmosphere, employees may have grounds to pursue legal actions against their employer.

3. Gaps that Fuel Disengagement

Internal dysfunction can create systematic gaps in communication, safety, and growth.  If there are no clear communications or expectations, employees don’t know what’s expected of them. They’re left to interpret on their own. 

What Can Leaders Do to Fix Workplace Toxicity?

Toxicity impacts more than your culture – it hits the bottom line. Addressing workplace toxicity requires change management. Leaders must be willing to look in the mirror, accept uncomfortable truths, and follow through with action.

Below is a graph showing some of the ways you can begin fixing workplace toxicity. The sooner you act, the sooner you can replace fear and dysfunction with trust, collaboration, and performance.

Final Thoughts

Organizations can correct workplace toxicity by acknowledging, addressing, and making the changes noted above. This effort will take time and starts at the top with both leading by example and creating a safe and confidential way to get honest employee feedback. The goal is to create and sustain a respectful, inclusive, and supportive work environment.

The Bradley Partnerships (TBP) provides organizational effectiveness (OE) services. Our team of certified SHRM and OE experts can work with you to assess your organization to

determine if toxicity exists. We partner with organizations to address workplace toxicity and put in place a customized approach, including training and coaching that hold managers accountable for creating and sustaining a respectful workplace. You can contact our office at (724) 799-8170 or by emailing us at info@bradleypartnerships.com. Visit our website at www.bradleypartnerships.com for more information.