Toxic Employees: Why do organizations keep them? (2024)

Toxic Employees: Why do organizations keep them? (1)

When you think of a “toxic” person at work or in an organization you volunteer for, what do you think of?You probably know one (or two).Toxic employees have behaviors that upset and annoy fellow staff members because of their laziness, bullying, lying, constant complaining, gossiping, harassing, and manipulative acts.The toxic employee may not be your most outspoken or aggressive employee. Passive people can be toxic too.In fact, passive toxic people have been called “snipers”.You never know when they are going to strike!

Another word for a toxic employee is: “Hurricane employee”.Dr. Duffy from the Carlson School of Management at the University of Minnesota coined that term.He states, “Hurricane employees have the ability to destroy the social fabric of the organization by creating friction, drama, tension, and hostility among other employees. Their damage extends beyond themselves.”Have you ever witnessed that kind of damage?If so, then you’ve witnessed a toxic person whipping up their hurricane!

Why do companies keep these “hurricane employees”?There are a few reasons.Believe it or not, significant research indicates toxic employees are often retained because they are highly productive.Yes, they may be your hardest worker and even volunteer to do extra work. In fact, in-depth research by Dr. Dylan Minor and Dr. Michael Housman from Harvard University found that toxic employees are often even more productive (working faster and staying on task) than non-toxic employees.

Additionally, toxic workers exhibit valued traits that leaders are looking for:charisma, curiosity, and high self-esteem.It’s possible that these toxic people are faking and posturing themselves as team players in front of their leaders; however, being their “toxic selves” among fellow employees.The faking and posturing is further behavior of a toxic employee. This type of behavior creates a vicious cycle within the organization and can have a detrimental impact on morale and ultimately the corporate culture.When a toxic person is promoted or given accolades for something at work, the rest of the team is confused, angry, and can feel defeated. Once this type of culture is created, it’s difficult to change.

Companies also keep toxic employees because managers fear conflict.They simply don’t want to address the issue.Researcher and author of The Boundaryless Organization and Simply Effective, Dr. Ron Ashkenas found that most managers will not admit that they avoid conflict; they are in complete denial.Rather, managers “rationalize away” why they shouldn’t deal with it.He said, “Avoidance is so common that there’s no panacea for overcoming it.”If a manager avoids a difficult conversation with a toxic employee, there is little hope for the rest of the employees.

Both of these reasons are cause for concern.Toxic people cause stress and emotional discourse at work or in any environment. While this is not calculated on the bottom line of your financial statements, it’s definitely affecting it.Researchers at Concordia University, Dr. Steven H. Appelbaum and Dr. David Roy-Girard discovered that employees who work around toxic people suffer from impaired judgement, irritability, anxiety, anger, and loss of memory/concentration.Furthermore, toxic employees cost over 200 billion dollars each year and are the reason for approximately 30% of all business failures in the United States.

There’s an emotional component and a business component to retaining toxic employees.They may be hard workers, but as a leader, can you really afford them…emotionally…and financially?Is the “contagion” worth it? If you are a manager, what are some goals you can set for yourself that will help you manage toxic employees? You may feel uncomfortable managing these employees at first, that’s normal.It takes courage, resiliency, and confidence to navigate through the turbulence of this treacherous hurricane.

It’s okay to ask for help. If you are able, find a mentor or a coach to help you with skill-building in this area. This is a skill that takes time to develop. If you are comfortable with managing these situations, offer your guidance to others.If you are the leader, people will count on you to help them navigate through the destructiveness of the hurricane.The true “leader in you” emerges during the most difficult of times. It’s important to design a proactive strategy to either preempt this behavior or to react appropriately when it happens. If you’re a leader, your reputation and the health of the company will depend on it.

Toxic Employees:  Why do organizations keep them? (2024)

FAQs

Why do bosses keep toxic employees? ›

It could also be that the bad employee is a good person overall and has a good relationship with the manager. This makes it emotionally difficult to fire them even if they are not performing. The manager might have hopes that the person will change his behavior and with guidance, his performance will improve with time.

Why do companies keep bad employees? ›

The boss may worry that if the bad employee is fired, he or she won't be able to find another job. If the employee needs the money to support a family, has health problems, or has recently experienced another life challenge, the boss may feel it's best to let the employee keep the job.

How do you outsmart a toxic employee? ›

How to steps on managing toxic employees
  1. Don't take their behaviour personally. ...
  2. Try identifying the cause of the problem. ...
  3. Document toxic behaviour. ...
  4. Give them honest and direct feedback. ...
  5. Explain the consequences of their actions. ...
  6. Start assigning them tasks they can complete independently. ...
  7. Try deciding on a compromise.
Jul 2, 2024

How should firms deal with a toxic employee? ›

The employer can help by providing resources such as counseling or coaching, setting regular check-ins, and establishing clear expectations. Additionally, recognizing positive changes in behavior can go a long way in helping the employee reach their goals.

Do toxic bosses know they are toxic? ›

Yet, many toxic bosses are not aware they have achieved that status because employees are afraid to give feedback, and managers often don't seek it.

Why do bad bosses not get fired? ›

In many cases, bad managers continue their tenure simply because their behaviors go unnoticed by upper management. This blindness often stems from a lack of direct interaction between senior leaders and lower-level employees, where most poor management behavior occurs.

Can a toxic employee be fired? ›

There are no hard and fast rules for firing toxic employees. In general, however, you probably want to bring your concerns to their attention before simply hauling off and dropping the axe. Employees who can exhibit a propensity for self-awareness and reflection are more likely to work on their toxicity.

What are the signs of a toxic employee? ›

These are some common signs of toxic employees:
  • Being absent a lot.
  • Making aggressive/harassing comments or actions.
  • Blaming others for their mistakes.
  • Being disengaged or performing poorly.
  • Constantly complaining.
  • Gossiping.
  • Being excessively competitive.
  • Failing to admit wrongdoings.

What is the psyche of a toxic employee? ›

Toxic employees can be identified by their overconfidence, self-centered attitudes, and lack of cooperation. They often disrespect co-workers and prioritize their interests over the team's. Their behavior disrupts team dynamics, lowers morale, and hinders productivity.

How do you prove an employee is toxic? ›

Identifying Toxic Employees
  1. Negativity. Constantly complaining, criticizing, or spreading pessimism among colleagues.
  2. Dishonesty. ...
  3. Bullying and Harassment. ...
  4. Sabotage. ...
  5. Document Behavior. ...
  6. Open Communication. ...
  7. Provide Feedback and Support. ...
  8. Set Clear Expectations.
Jan 19, 2024

How to get a toxic employee to quit? ›

How to flawlessly fire a toxic employee
  1. Be kind, but also direct. ...
  2. Keep track of all misconducts and provide frequent performance-based feedback. ...
  3. Explain why the decision was made thoroughly, but do not go overboard. ...
  4. Be prepared and don't get distracted. ...
  5. Be mindful of mental health. ...
  6. Communicate with your team appropriately.
Feb 22, 2023

How do you expose a toxic person at work? ›

Communicate clearly and assertively without being confrontational. Limit interactions and exposure to their negativity. Seek support from trusted colleagues or a mentor, and if necessary, escalate the issue to HR or management after documenting all instances of toxic behavior.

Why do bosses set employees up to fail? ›

In any case, the syndrome is set in motion when the boss begins to worry that the employee's performance is not up to par. The boss then takes what seems like the obvious action in light of the subordinate's perceived shortcomings: he increases the time and attention he focuses on the employee.

Why do managers sabotage employees? ›

Sabotage is often employed when the saboteur, because of excessive managerial control and lack of autonomy, has found it difficult to use his or her initiative and creativity to further workers′ corporate interests and objectives.

What do you do when your boss creates a toxic work environment? ›

5 Effective Tactics to Handle a Toxic Boss
  1. Do Not Take Their Treatment Personally.
  2. Find Allies and Support.
  3. Take Time Off to Recharge.
  4. Document, Document, Document.
  5. Be Your Own Advocate.
Nov 15, 2023

Why do bosses fire good employees? ›

One of the most common reasons for firing good employees is performance issues. Even top performers can have periods of low productivity, but if the problem persists, it can become a concern for employers. Managers may give feedback and support to help the employee improve their performance.

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