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8 Warning Signs That Your Workplace Is Becoming Toxic

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By YEC

A toxic workplace can lead to lower-quality work, a decrease in productivity, and employee dissatisfaction—all of which may lead to staff turnover. When you’re a leader, it's important to address the signs of a toxic workplace as soon as you notice them in order to avoid cultivating a negative company culture.

To help you deal with a toxic work environment, a panel of Young Entrepreneur Council members explain what signs to watch out for and how to address issues head-on before they spiral into a bigger problem.

What's one sign that a workplace is becoming toxic and what should a business leader do?

1. Inexplicable turnover

The most obvious sign of toxicity is inexplicable turnover. If you aren't giving your departing employees an opportunity to speak fearlessly in a one-on-one exit interview, chances are they will be reluctant to share important, less-positive information. There are many reasons for this, but the two most common are not wanting to “throw shade” or drag unhealthy dynamics into their new job. —John Hall, Calendar

2. Lack of transparency

Low transparency is an important early sign of toxicity in the workplace. Look for supervisors and managers withholding information, providing misleading information, or using back channels to give information to favored employees. In low-transparency environments, employees are more likely to be blindsided by negative information, which harms morale and can increase turnover. —Andrew Schrage, Money Crashers Personal Finance

3. Gossip among employees

Gossip is often closely linked with a workplace becoming toxic. It is important for leaders to catch and correct it early because few things are as draining on morale and productivity as gossip. Lots of things can cause the issue, such as a bad hire; a weak manager; a lack of clarity about vision, goals, or strategy; and more. How you solve the problem depends on the root cause, so figure that out first! —Ben Landers, Blue Corona

4. People pointing fingers at others

When people start pointing fingers whenever there's a problem or something doesn't work properly, when no one is willing to admit they were wrong, when people are afraid of telling the truth—those are all signs that something is off with the company culture. You can start to fix it by conducting an anonymous survey with a bunch of open-ended questions to try to get to the root of the issue. —Samuel Thimothy, OneIMS

5. Passive-aggressive behavior

Toxic workplaces can be difficult for managers to identify. Toxic environments are often characterized by passive-aggressive behavior and verbal attacks from higher-ups. Managers must be aware of these signs and act swiftly. They should also keep a keen eye on the well-being of their employees in order to lessen the damage that can be done by toxic work environments. —Kristin Kimberly Marquet, Marquet Media, LLC

6. Unmotivated workers

Unmotivated workers who only want to do the bare minimum are a telltale sign that things have turned toxic. If a business leader sees this, get employees to start talking and sharing their ideas; this can be in writing to start. Reward the employees who exemplify the company’s core values. Create more positivity in the workplace by making workers happy. —Jared Weitz, United Capital Source Inc.

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7. Low team morale

One red flag is low morale during work hours. Employees may be less enthusiastic and focus more on individual tasks than on completing a project. They may also not engage in team-building exercises. Leaders should first identify the cause of this lower morale by creating a safe space for employees to talk about their concerns. Ensure complaints are confidential, and then you can brainstorm solutions. —Duran Inci, Optimum7

8. Division among departments

A sign of toxicity in the workplace is people divided into hostile factions. These factions may be defined by department (such as marketing vs. IT), personality, or power struggles. If people who should be working together see each other as opponents, it creates tension. Leaders need to be wary of this and work toward a cooperative atmosphere. —Kalin Kassabov, ProTexting

About the Author

Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most successful young entrepreneurs.