Nine subtle signs that your organisation is becoming toxic

Image courtesy of Mikael Seegen on Unsplash

This is the first in a three-part series focusing on organisational toxicity. The second in the series will address the ‘eight most dangerous signs of toxic leaders’, whilst the third will cover ‘eight ways to survive toxic leadership’.

When the phrase ‘toxic organisation’ is mentioned, what sort of workplace comes to your mind? Presumably one where there is a rampant culture of bullying, back-stabbing and lying? Perhaps it is one where grievances proliferate or where levels of sickness or staff turnover are unacceptably high? These are amongst the most serious signs of organisational toxicity and thankfully, ones that are easily recognisable.

However, what is often unappreciated is that toxicity starts as a soft whisper, not a loud bang. A bit like a person who contracts a serious illness, without immediately presenting with any symptoms, so it is with an organisation that has become toxic. The most dangerous symptoms of toxicity are not those that have reached an advanced stage, but those that can easily be confused with other things and are therefore overlooked.

This blog highlights the nine subtle signs of toxic organisations and explains not just what they are, but more importantly how they lead to more advanced and destructive symptoms of organisational toxicity. To learn more, read on.

1. Leadership shoulder shrugging

The phrase “the fish rots from the head” aptly describes how leadership ineptitude can contribute to organisational toxicity. When leaders are more concerned about their job prospects and avoiding anything that could be mildly contentious, than doing what they know to be right, then toxicity has already set in. The worst form of organisational toxicity is leadership indifference. The casual shrug of the shoulder from those who should be setting the right example, is perhaps the most common expression. To get a feel for the likely scale of leadership delinquency on the big issues, just watch how passive and indifferent it is on small matters.

2. The culture of mediation

This may come as a surprise to some, but a culture of mediation can be one of the surest signs that an organisation is becoming toxic. Let’s be clear, mediation is one of the most effective and successful tools for resolving conflict, within an organisation. However, when it becomes a means to avoid accountability for egregious malpractice (especially on the part of management), then it simply serves as a free pass to abusers. Quickly, the word spreads that those engaged in misconduct will not be held to account and will instead be invited to participate in a ‘group hug’. Whether or not it is intended, mediation cannot and should never be used as a form of accountability avoidance.

3. The parallel universe effect

The noise of discontent is quite clear. Complaints, grievances and declining productivity are just some examples of what it sounds like. But what about the noise of unease? How does that sound? At any time, an organisation ought to know the top three or four issues that its employees are most concerned about. Remember, concern is not the same at discontent, but if employee concerns are not addressed, then unease could morph into discontent and discontent could rapidly mature into serious disruption. When organisations are no longer operating on the same wavelength as their employees, they will be seen as lacking credibility. When credibility is lacking, then confidence, trust and influence will rapidly drain away.

4. Coded and loaded messaging

Often the most insidious sign of organisational toxicity can be the most inadvertent. Management appeals such as “I know you will not let me down” or “I know I can rely on you” seem, on the face of it, to be innocuous forms of affirmation and motivation. However, they are also subtle forms of psychological manipulation that can place unnecessary pressure on employees, who may already be at or near breaking point. Not only that, but such utterances can unwittingly pit one colleague or group of colleagues against another, resulting in workplace tension and rivalry.

5. Whispering and gossip merchants

Every organisation has its fair share of gossip merchants and whisperers. But in strong and resilient organisations ‘spot fires’ of gossip quickly burn themselves out and rarely become full-fledged conflagrations — even when there is truth to them. However, in less mature organisations that is not necessarily the case. Whispering is damaging because it can de-motivate a workforce, undermine reputations and destroy careers. Those who whisper know this all too well. With whispering, it is not just the frequency with which it occurs, or even the speed with which rumours take hold that matters. Rather, it is the willingness of people to believe whatever negative message they hear, that counts. When employees are prepared to believe the worst about their workplace, that is a strong indicator of subtle toxicity.

6. The perceived power of the in-crowd

Call them cliques or the in-crowd, anyone who works in a medium to large-size organisation will know exactly what they are. For different reasons, colleagues will form mutually supportive networks that can be incredibly positive for employee and employer alike. However, there is a flip side. Specifically, where these groups are perceived as being socially exclusive. Whether or not any effort is made to assert such a status, the mere perception of such can create a chilling effect in the wider workplace. For those who are not members of these groups, the perception of exclusion could lead to feelings of intimidation and resentment.

7. The presence of absence

Organisations correctly point to increasing levels of sickness absence as a sign that things are going awry. Especially when these indicators are prevalent in areas where employees are already known to be disaffected. However, an even more powerful form of employee disaffection is presenteeism. This is where employees turn up for work but perform little by way of any productive function, whilst they are there. This may be due to passive protest, poor supervision or laziness. Notwithstanding, a workplace that struggles to generate productive hours from employees who are physically present is just as toxic as one that cannot generate productivity from those who are physically absent.

8. Tolerance of uneven performance

The phenomenon of uneven performance is a common characteristic of any workplace. But does that mean that every organisation is at risk of becoming toxic? Not necessarily. The point about uneven performance is that it can lead to toxicity if the scale of unevenness is so wide and if it has been left unchallenged for too long, that it leads to rumblings of discontent. When performance becomes and is allowed to remain inequitable, it presents an organisation as inert, uncaring and unjust. This in turn undermines management authority and could lead to falling levels of productivity or increased sickness absence.

9. A malfunctioning ‘internal compass’ and the danger of drift

Mature organisations possess an ‘internal compass’. It is not a tangible mechanism but rather a ‘knowing’ that enables the organisation to right itself if it drifts off course. For the most part, this ‘knowing’ is exemplified by deeply held values or principles that are reflected at every hierarchical layer. In organisations that are immature, this ‘internal compass’ has malfunctioned to the extent that they struggle to find their bearings and stay on course. When organisations drift, it is not because they choose to, but rather because they tolerate attitudes or embrace behaviours that make it impossible not to.

The culture of organisational toxicity is seldom attributable to one factor. Often, it is a combination of characteristics that creates the picture of toxicity. But here’s the rub: if you assume that organisational toxicity is a product of design, then you are fundamentally incorrect. It does not have to be intentional, in fact when organisations become toxic, it is rarely due to an act of sabotage and much more likely to be the result of carelessness and incompetence. The key for every organisation is to be able to detect the subtle signs and discern their likely impact on organisational wellbeing, before lasting and irreparable damage is done.

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The eight most dangerous signs of toxic ‘leaders’

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