Running a business comes with its own set of challenges, and one critical aspect that should be a top priority is your workplace culture. Toxic workplace culture impacts your and your employees’ well-being and overall job satisfaction.
In 2023, the American Psychology Association (APA) conducted a survey that revealed that 19% of employees found their work environment somewhat or very toxic. Understanding why it’s crucial to address toxicity in the workplace is paramount for small business owners.
What does a toxic work culture look like?
Identifying signs of a toxic workplace is vital for your enterprise to maintain a healthy work environment. Here are key indicators that may suggest toxicity among your employees:
- Excessive negativity: Constant complaining, blaming or a pervasive attitude among employees.
- Poor communication: Lack of transparency, rumours or deliberately withholding information, creating uncertainty.
- High turnover: Frequent departures of employees without apparent reasons or consistent patterns of leaving. Companies with poor workplace culture are 10 times more likely to see employees quitting.
- Bullying or harassment: Instances of verbal abuse, bullying or harassment among employees. Increased complaints or grievances among employees, either formally or informally.
- Decreased productivity: A noticeable decline in overall productivity and work quality.
- Absenteeism and lateness: Consistent absenteeism or frequent tardiness without valid reasons. In the United Kingdom, almost one-third of employees reported taking time off work due to a toxic environment.
- Increased conflict: Rise in interpersonal conflicts, whether mild disagreements or more serious confrontations.
- Lack of initiative: Employees showing a lack of initiative or engagement in their roles.
- Elevated stress levels: Observing signs of stress, anxiety or burnout among team members.
- Cliques and division: Formation of cliques or divisions within the team, hindering effective collaboration.
Recognising these signs allows you to proactively address and rectify issues before they escalate. Regularly assessing the workplace dynamics and fostering open communication can help create a positive and productive business environment.
Why should you recognise toxic workplace culture?
Before the detrimental effects of a toxic workplace culture take a toll on your small business, it’s crucial to recognize the warning signs. Identifying these issues early empowers you as a business owner to proactively address concerns and cultivate a healthier work environment.
Negative impact on employee wellbeing
Recognising that toxic workplace culture directly affects your employees’ wellbeing – emotionally, mentally and even physically – is key. Unhealthy work environments can lead to stress, anxiety and a decline in overall job satisfaction. In a separate survey conducted by the APA, 40% of workers reported feeling stressed the previous day and more than one-fifth reported feeling angry or sad due to their workplace. Employees who feel valued and supported are more likely to contribute positively to the success of your business.
Productivity and performance
Workplace toxicity can directly impact your business’s productivity and performance, especially in a small business setting. When team members are disengaged or facing constant negativity, it hampers their ability to focus on tasks and deliver optimal results. Addressing toxic elements can contribute to a more efficient and effective work environment.
Team dynamics and collaboration
In a small business, the dynamics among team members play a vital role in the success of the enterprise. Toxicity can strain relationships, leading to conflicts that hinder collaboration. Nurturing a positive workplace culture fosters teamwork, enhancing the ability of employees to work together harmoniously toward shared goals.
Retention
Your business likely relies on a close-knit team. A negative workplace culture can result in a high turnover rate, disrupting the stability of your company. Between July and November 2022, more than four million Americans resigned each month, and 57% of these resignations were due to feeling disrespected at work. Addressing these issues helps retain valuable employees and contribute to a positive reputation, making it easier to attract top talent.
The ripple effect on business growth
Recognizing that a toxic workplace culture can have a ripple effect on the growth of small businesses is essential. Unresolved issues can impede innovation, hinder creativity and limit the potential for expansion. Investing in a healthy workplace is an investment in the long-term success and sustainability of the business.
Companies with outstanding workplace culture
Certain companies stand out for their exceptional commitment to emphasising positive, inclusive and innovative workplaces. These organisations go beyond the traditional norms, prioritizing employee wellbeing and development. Here are some companies with excellent workplace culture:
Google is renowned for its exceptional workplace culture, setting a high standard in the tech industry. Google’s success lies in a commitment to creating a positive and inclusive environment. The company’s unique perks, like on-site fitness centres, gourmet cafeterias and flexible work schedules, create a holistic work-life balance, leaving 85% of employees satisfied with their jobs. Google encourages open and collaborative office spaces that promote communication and idea sharing.
Intuitive
Intuitive, a minimally invasive care company, has similar stories of employee satisfaction. Managers encourage continuous learning and are supportive of their employees and support their desires to advance their careers. These factors contribute to a vibrant and dynamic culture where employees feel empowered, valued and motivated to bring their best selves to work each day.
Airbnb
Airbnb, one of the biggest names in the travel industry, focuses on community and belonging. At the core of Airbnb’s success is a result of promoting a work environment that mirrors the diversity and inclusivity of the global community. The company places a premium on creativity, encouraging employees to think outside the box through unique office designs, collaborative spaces and the ability to work and live anywhere.
With a strong focus on employee wellbeing, Airbnb offers benefits like flexible work arrangements and wellness programs, fostering a culture where employees feel supported and valued. This culture is what led to Airbnb being rated the best place to work in 2016, dethroning Google.
Creating a healthy workplace culture
Recognising red flags and addressing toxic workplace culture is non-negotiable for the long-term success of your business. By promoting a healthier workplace, you contribute to a more productive, innovative, welcoming and fulfilling work environment for everyone.
