Toxic Employees Increase Staff Turnover By 54%: How to Handle Negativity At Work

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According to MIT Sloan’s study of 1.4 million employee reviews from the top 500 US companies, a toxic work environment is a whopping 10 times more likely to lead to dismissal than dissatisfaction with salary. 

Additionally, a study by Harvard Business School found that when a team has just 1 toxic colleague for every 20 others, the chances of losing valuable employees shoot up by 54%! What’s more, even if it’s just one toxic person, productivity can plummet by 30–40% for the rest of the team.

The good news? You can spot warning signs early, even during interviews. Plus, there is a whole typology of toxic traits out there. We’ve rounded up the main signs to watch for in toxic specialists, along with tips on how to spot and handle them if they are already on your team.

How toxic employees affect teams and corporate culture

Here is the lowdown on toxic individuals: they are not just unpleasant and costly for the company, but they’re also contagious, spreading their negativity to other employees:

• 80% of employees find themselves mulling over the behavior and words of a toxic coworker instead of focusing on their tasks.

• 78% claim their loyalty to a company takes a hit when there is a toxic person in the mix, leading to more negative reviews about the employer.

• 73% of specialists are thinking about leaving the company and almost as many are feeling burnout symptoms.

• In a toxic work setting, productivity takes a nosedive for 66% of workers, while 48% lose their mojo for taking initiative and showing enthusiasm.

• The negativity doesn’t just stay in the office — 25% of professionals end up taking it out on clients when they are dealing with toxic colleagues.

• Only 6% of situations involving toxic behavior end on a positive note.

• Just 3% of specialists manage to stay satisfied with their work despite the toxic vibes.

Negativity spreads faster than wildfire. In 2015, Harvard Business School’s Dylan Minor and Cornerstone OnDemand’s Michael Houseman delved into the impact of toxic coworkers. Their study spanned 11 organizations, 2.8 thousand working groups, and a whopping 58.5 thousand employees.

Their findings were pretty telling: over a year, the most productive team member can rake in $5 thousand in profit for the company, while the toxic one? Well, they manage to rack up a hefty $12.5 thousand in losses. Yep, you read that right — twice the cost of hiring a top-performing specialist.

“Saboteurs”, “Victims”, “Gossipers”, “Aggressors”: 7 types of toxic employees

In nearly every company, you’ll notice some toxic employee behaviors. They are the ones who dampen the vibe, spread gossip about coworkers and management, radiate negativity toward clients, sabotage innovation, or simply procrastinate, leaving their colleagues demotivated. We call them toxic — and this label fits because they truly poison the team.

However, toxic behavior isn’t one-size-fits-all. It comes in different flavors. That is why we categorize these toxic individuals into different types.

1. Saboteurs/Whiners

Meet the perpetual dissatisfied: these toxic colleagues are never happy with anything — their tasks, clients, salary, management, you name it. They’ll criticize every idea and go to great lengths to sabotage innovations. 

Criticism? Forget about it — they don’t recognize authority simply because they are perpetually dissatisfied with managers and colleagues alike. They’re the ones who could easily throw a wrench into contract signings, drain the customer base, or postpone deadlines just to stall innovations.

2. Fake workaholics

These specialists are perpetually in work mode, round the clock. They’ll pull overtime, tackle tasks on weekends, skip vacations (even when they are sick), and their work talk dominates even during lunch breaks. However, this behavior might just be a cover-up for poor time management and an inability to focus during regular working hours.

What is more, these tricky colleagues aren’t shy about publicly criticizing those who don’t match their overtime hustle. They’ll drop lines like “No one can do what I do” and boast with overblown self-branding to catch the eye of employers.

3. Hyper-perfectionists

Hyper-perfectionists spend an incredible amount of time at work striving for impeccable standards. Delegation? Not their thing — they struggle to trust others to meet their sky-high expectations, and they are quick to lash out at anyone who falls short.

But here is the kicker: excessive perfectionism doesn’t necessarily mean better performance. In fact, this fixation on quality often leads to completing fewer tasks compared to colleagues who aren’t burdened with such rigid thinking.

Teams under their management suffer from poor organization, as everything must go through them for approval. Spotting this type of toxic employee early is crucial since they can stifle team dynamics with their rigid standards and constant dissatisfaction.

4. Victims

These specialists always feel undervalued, mistreated, and convinced that life is just not fair. They’ll gripe about their health, consistently miss deadlines, pass off their work to colleagues, and never run short on excuses for their inefficiency.

5. Gossipers

These employees constantly thrive on drama and intrigue. They are the office’s walking news hub, whether they know the facts or just make them up as they go. You’ll often find them lingering around the water cooler, spinning tales with a negative twist, or taking leisurely lunchtime strolls in search of juicy stories to share. Stirring conflicts, deceiving, and weaving intrigues is their idea of a hobby.

6. Mini-chiefs/Critics

They’re notorious for being overly critical of their colleagues, constantly nitpicking and giving unsolicited feedback. They downplay or ignore others’ achievements and have a knack for complaining to managers about their teammates.

They’ve built a persona around being the company’s most indispensable asset, despite their professional growth hitting a plateau. Often, they believe their tenure with the company makes them more important than others.

7. Aggressors

Enter the passive-aggressives: masters of expressing hostility in subtle, sneaky ways. They’ll throw out veiled insults, manipulate situations, or resort to outright aggression — like raising their voices — to make their coworkers feel downright miserable.

Interesting to know: In his book “The No Asshole Rule. Building a Civilised Workplace and Surviving One That Isn’t,” Stanford University lecturer Robert Sutton emphasizes the importance of distinguishing between individuals you simply don’t get along with and truly toxic employees.

We all have our moments of temporary toxicity — for instance, when a challenging client throws off our mood with yet another change in the scope of work, or personal issues at home collide with a disagreement with a close colleague. However, when it comes to those who consistently radiate negativity, it’s crucial to set boundaries and limit communication with them.

How to recognize toxicity in candidates

When recruiters and HR managers scout for candidates, they tend to focus heavily on hard skills. At the same time, soft skills often get overlooked. Yet, it’s these soft skills that give you insight into the person you are dealing with. So, take a step back, look at the big picture, and pay close attention to the details during interviews.

• candidate’s punctuality;
• how he/she communicates with the office manager and other employees during the interview;
• how he/she speaks about former employees and managers;
• whether the candidate’s behavior changes after the meeting ends.

What should you be especially concerned about:

• Spreading gossip about current or former colleagues. During interviews, candidates should steer clear of criticizing past employers. Instead, they should focus on the specifics of their previous roles and responsibilities.

• Lying during an interview. According to Checkster, 78% of candidates try to pull a fast one during the hiring process. Here is the breakdown of what they fib about:

— Skills: 60% exaggerate their skills, whether it’s their English proficiency or their coding prowess.

— Job Titles: about 41% fib about holding managerial positions when they were low-level specialists.

— Education: close to 40% stretch the truth about attending prestigious universities or completing popular courses.

— Achievements: approximately 33% fabricate stories about their accomplishments and experiences.

Moreover, 66% of employers buy into these tall tales, failing to spot the lies during interviews. That’s where recommendations from previous employers and STAR interviews come in handy — they help sift fact from fiction. Plus, keep an eye out for nonverbal cues: truth-tellers usually maintain an open posture, display natural emotions, and make direct eye contact. On the flip side, if a candidate seems tense, avoids eye contact, and adopts a closed-off posture (like crossing arms and legs), he/she might just be spinning a yarn.

• Inability to recognize gaps in knowledge and aversion to criticism. Toxic colleagues tend to believe they are flawless and hide their failures. This kind of communication style can wreak havoc in any company, impacting all levels of operation.

When evaluating candidates, delve into their job history, paying attention to job-hopping tendencies. Additionally, keep an eye on their social media activity to gauge their interpersonal skills. If you’re still unsure after the interview, reaching out to their previous employer can provide valuable insights.

During the probationary period, observe how the candidate interacts with colleagues and handles criticism. Toxic communication becomes apparent quickly. Keep in mind the five pillars of toxicity at work: disrespect, lack of inclusion (like age discrimination or sexism), unethical behavior, cruelty, and abuse. Identifying these traits early on can prevent hiring a toxic employee.

MIT Sloan Research

In order to always be aware of climate changes in the company, regularly conduct 180 and 360-degree assessments, as well as one-to-one meetings.

Maryna Kosich

Recruitment Team Lead at ITExpert

“Navigating the concept of “toxicity” at work requires careful consideration, as it can be subjective and heavily influenced by team dynamics. What may be acceptable banter in one workplace might be seen as a red flag in another. Likewise, conservative communication styles may clash with more casual environments, leading to perceptions of toxicity.

It’s also important to recognize that labeling someone as “toxic” can sometimes be unfair. For example:

• Feeling demotivated in an environment where top performers excel might lead some to perceive the culture as toxic, despite it being focused on achievement.

• Assertive behavior, such as constructive criticizing ideas, shouldn’t automatically be labeled as toxic. It’s essential to differentiate between constructive feedback and toxic behavior.

• Expectations around job responsibilities can vary greatly. What may be normal in a startup environment might feel boundary-crossing to someone accustomed to more rigid roles.

To navigate these complexities, managers, HR professionals, and recruiters should thoroughly understand the corporate culture and values of the team. When conflicts arise, acting as mediators and clarifying intentions can help resolve misunderstandings and adjust expectations.

Above all, it’s important not to indiscriminately label others as “toxic.” Understanding each individual’s perspective and fostering open communication is key to maintaining a healthy work environment.”

How how to handle toxic employees if you are HR, manager or colleague

Dealing with toxic colleagues can be challenging, but it’s important to exhaust all options before considering dismissal. Here are some steps to consider.

If you are HR or manager

Toxic behavior is often a sign that an employee is dissatisfied with certain areas of his life or career, a kind of request for help. Engaging in informal one-on-one conversations with the employee can provide valuable insights into their thoughts and feelings. Here is a list of questions to help facilitate dealing with negative employees:

• How have you been feeling lately?
• What recent accomplishments are you most proud of, and why?
• What career milestones are you aiming to achieve this year?
• What aspect of your job motivates you the most, and why?
• Do you feel that your current role aligns with your career goals?
• What challenges do you perceive as barriers to reaching your goals?
• Do you feel that anything within the company is hindering your productivity?
• Are there personal matters affecting your focus at work?
• On a scale of 1 to 10, how satisfied are you with your job, responsibilities, and the company culture?
• Do you feel you receive sufficient feedback on your performance?
• What suggestions do you have for improving our company culture or operations?
• How can I support you better moving forward?
• Is there anything else you’d like to discuss that we haven’t covered?

Encourage open-ended responses and pay attention not only to what the employee says but also to their body language and tone. By understanding the employee’s true motivations and addressing any underlying issues, you can work towards fostering a healthier and more productive work environment.

If you are a colleague

How to deal with toxic co-workers? Establishing personal boundaries is key to effectively dealing with toxic colleagues. Here’s how you can do it:

• Communicate your boundaries: let toxic colleagues know how they can and cannot communicate with you, and what topics are off-limits. If they violate these boundaries, assertively remind them of your preferences.

• Seek support: reach out to trusted coworkers or a manager for support when dealing with toxic behavior. Sometimes nobody can say how to avoid toxic coworkers. At the same time sharing your experiences can help reduce the negative impact of toxic colleagues.

• Maintain self-control: toxic individuals may try to provoke emotional reactions from you. By staying calm and composed, you can deprive them of the satisfaction they seek from your response.

Anna Krasilnik

HRD, soft skills trainer, and executive coach at Savvy L&D Solutions Company

“Understanding that toxic behavior often stems from internal pain is an important first step in dealing with it. While we can’t change or “cure” a toxic colleague, there are steps we can take to protect ourselves and promote healthier interactions:

• Prioritize your emotional well-being: find strategies to stabilize your emotions after interacting with a toxic colleague, and limit communication with them if possible.

• Establish clear boundaries: set guidelines for communication, including permitted topics of discussion and preferred mannerisms.

• Communicate openly and respectfully: suggest mutually beneficial ways of communication, demonstrating kindness, sincerity, and respect in all interactions. Everyone you meet along the way is fighting a battle you know nothing about. 

Once, I was working on a new project and received a comment from a colleague that I obviously didn’t yet understand how everything worked on the project. This kind of feedback was unpleasant for me, so I frankly answered: “Yes, I’m just taking my first steps on the project, so your support would be very valuable to me now. If you notice any successes on my part, please highlight this. And on the contrary: if there are areas for improvement, I will be glad to hear them with specifics and examples.” After my reply, we adhere to this approach in communication.”

Can toxic employees change?

Some toxic employees can indeed change their behavior with the right support and training. However, it’s also true that not everyone is willing or open to change. Some individuals may persist in negative behaviors like gossiping, bullying, or even pilfering lunches from the office fridge.

While ignoring the impact of toxic colleagues is not an option, neither is abrupt termination without attempting to address the situation. It is crucial to approach each case individually and make efforts to work with the colleague in question before resorting to drastic measures. Communication, support, and clear expectations can sometimes facilitate positive changes in behavior.