Unveiling the Hidden Impact of Toxicity on Your Business
According to a study by Dylan Minor, a visiting assistant professor of business administration in the HBS Strategy unit, a company stands to lose $12,489 in costs from replacing one toxic worker, which is almost double the figure a company gains from hiring a “superstar”.1 This figure does not include savings from avoiding litigation, regulatory penalties, or decreased productivity as a result of low morale.2
Toxic employees can drive up employee turnover, diminish the productivity of their colleagues, create a negative work environment, and damage the company’s reputation.
How to deal with toxic employees
How can you be proactive in mitigating the damage of toxic employees? By implementing clear policies and procedures for dealing with toxic behavior, providing training and support for managers to address toxic behavior, and fostering a positive work culture that promotes respect and collaboration. By taking steps to address toxic behavior, businesses can avoid the significant costs associated with toxic employees and create a more productive and positive work environment.
Toxic employees can have a dramatic impact on a business, both financially and in terms of company culture. Here are some solutions for dealing with toxic employees:
1. Address Directly
Engage in a meaningful conversation privately: Address the toxic behavior directly and privately with the employee. Make sure to document everything and explain the consequences of their actions.
2. Transparent Feedback
Provide transparent and straightforward feedback: Make sure the employee understands how their behavior is impacting others and the company as a whole.
3. Minimize Impact
Assign tasks that can be done independently: If possible, assign tasks to the toxic employee that can be done independently to minimize their impact on others.
4. Don't Delay decision-making
Get ready to make hard decisions: If the toxic behavior continues, be prepared to make difficult decisions, such as termination. Our motto is – hire slowly, exit quickly. Don’t let these difficult decisions lag.
5. Eliminate Ambiguity
Call out, define and describe toxic behavior in policies: Make sure there is no ambiguity in the behavioral description. Convey in clear language that the behavior is unacceptable and not aligned with company culture or values. Communicate consequences.
Letting go of difficult employees, particularly when they are high performers, is not an easy task. Leaders fear that they will lose client relationships, that productivity will drop or that in this difficult labor market, it will be tough to fill the role quickly. The opposite is true. By taking these steps, businesses can avoid the significant costs associated with toxic employees and create a more productive, profitable, and positive work environment.
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