Managing Toxic Employees: A Quick Guide to Building a Positive Workplace Culture

Allen Abbott
Nov 10, 2023
6 min read

Managing toxic employees is one of the most challenging tasks for any leader. Toxic behaviors—such as negativity, conflict, and lack of accountability—can disrupt team morale, reduce productivity, and lead to high turnover rates. However, by implementing structured strategies—including conflict resolution, employee support, and clear expectations—leaders can transform the workplace into a positive and productive environment. In this article, we’ll explore effective strategies for handling difficult employees, boosting team morale, and building a supportive workplace culture.

Recognizing Toxic Behavior in the Workplace

The first step in managing toxic employees is understanding what toxicity looks like and its impact on the broader team. Toxicity can appear in various forms: constant negativity, lack of accountability, manipulation, passive resistance, or gossip. For instance, imagine an employee who subtly undermines colleagues by spreading rumors, taking credit for someone else's work, or positioning themselves as the “victim.” These actions don’t just disrupt individual relationships; they erode trust and create an environment where everyone feels on edge—a workplace “contamination” that can quickly lower engagement and morale.

According to research from the American Psychological Association, toxic workplaces often lead to increased stress and decreased job satisfaction, creating a cycle of disengagement and lower productivity (APA, 2022). As leadership expert Marshall Goldsmith emphasizes, “Leaders must confront toxic behaviors head-on to protect the integrity and morale of their teams.” Ignoring these behaviors can stall or even reverse a team’s progress, regardless of the skills or talents of individual team members.

Recognizing and understanding these signs early is essential. One effective approach is regular check-ins that allow you to observe team dynamics and catch subtle but telling interactions. Toxicity often festers when it’s not acknowledged, so identifying and addressing these behaviors swiftly is key to preventing their spread and protecting team cohesion. In today’s hybrid work culture, where collaboration, trust, and shared goals are essential, tolerating even small amounts of toxic behavior can undermine these values.

Addressing Toxic Behavior Directly and Promptly

Once you spot toxic behavior, it’s important to address it directly and quickly, but with care and precision in how you communicate. Set up a private meeting with the employee to go over specific behaviors and their impact on the team. For example, if an employee often speaks over others in meetings, you might start by saying, “I’ve noticed that during discussions, you sometimes speak over others, which can make it harder for everyone to feel heard.” Here, stick to observations without assigning motives—recognizing that what you observe may not reflect the full story. Encourage them to share their perspective to ensure you’re not missing any critical context.

A woman and a man having a conversation.

Framing feedback constructively is key. Instead of just highlighting issues, suggest solutions together by saying something like, “Let’s work together to create a space where everyone feels comfortable contributing.” Thoughtful phrasing can help prevent defensiveness and show that you’re invested in supporting their growth. Simon Sinek captures this well: “Leadership is not about being in charge. It’s about taking care of those in your charge” (Sinek, 2019) and that is exactly what you are doing with this effort! By approaching the conversation with respect and openness, you help build a culture of trust and accountability. And, remember to document these conversations to keep both of you aligned on expectations and progress as you move forward.

Creating a Positive Work Environment through Meaningful Recognition and Collaboration

Building a positive work environment today is about recognizing and valuing each employee’s unique contributions in ways that genuinely resonate. Shift from traditional “Employee of the Month” programs to more personalized, ongoing recognition efforts that highlight specific achievements, such as “Spotlight Success” emails or team shout-outs on project milestones. Encouraging open dialogue is crucial too, but instead of the standard team meetings, try introducing monthly “Innovation Huddles,” where team members can share ideas for improving work processes or suggest creative solutions for challenges.

Additionally, consider pairing up employees for collaborative projects that cross departmental lines, enabling them to learn from one another and contribute to a shared goal. Studies by Gallup show that people who have close work friendships are not only more engaged but also more productive and resilient (Gallup, 2023). By fostering these connections and spotlighting individual contributions, you create a workplace culture that emphasizes respect, mutual support, and continuous growth. Investing in unique professional development options—such as mentorship programs or skill-sharing workshops—also strengthens bonds and creates an environment where everyone feels valued and motivated.

Providing Resources and Support for Toxic Employees

According to Forbes, providing support can lead to significant improvements in employee behavior and overall team dynamics (Forbes, 2023). Remember that your efforts are focused on fostering development and establishing trust. Offering resources and support to toxic employees can facilitate positive change. As a coach, naturally, I recommend providing coaching services to help them understand and address their behavior. For instance, if an employee struggles with time management, enrolling them in a time management workshop or working can be beneficial. Following up with them after is even more powerful! Clearly outlining expectations and consequences for continued toxic behavior while providing opportunities for improvement is a powerful combo. Encouraging open dialogue can also help identify underlying issues contributing to their behavior.

Establish Clear Consequences for Continued Toxic Behavior

When dealing with toxic behavior, setting clear consequences and following through consistently can make all the difference. Start by being upfront about your company’s standards for acceptable behavior so everyone knows the expectations and what happens if those aren’t met. Let’s say you have an employee who keeps missing deadlines despite a few warnings—at that point, you might consider putting a performance improvement plan in place to formally address the issue. The key here is consistency; when you follow through on consequences, it sends a message that respect and accountability are essential parts of your team culture. As the Harvard Business Review points out, "...holding employees accountable doesn’t just address individual issues—it sets the tone for a healthy, productive workplace where everyone knows they can do their best work." (HBR, 2022)

Call On Outside Help Early In Your Efforts

Seeking help early IS the right thing to do! Sometimes, tackling toxic behavior requires a fresh perspective, and this is where HR professionals or workplace coaches can make a real difference. These experts bring objectivity and specialized knowledge, helping you navigate complex situations that may feel too close to handle alone. HR can ensure that any actions you take align with company policies and legal requirements, protecting both your team and your organization. Additionally, workplace coaches can offer tailored strategies to help the employee address their behavior in a constructive way. As McKinsey & Company highlights, bringing in HR early in these cases often leads to faster, more effective resolutions, creating a safer and more supportive environment for everyone involved (McKinsey, 2023).

Monitoring Progress and Reevaluating Your Approach

Monitoring progress and reevaluating strategies are crucial to ensure that interventions are effective. Regularly assess the impact of the measures taken and adjust strategies as needed. For example, if an employee shows improvement after coaching sessions, be on the lookout for how they apply what they have learned. When you see them acting in positive ways, recognize it in the moment (if possible) to reinforce positive behavior. If no improvement is observed, consider alternative approaches or additional resources. According to the Society for Human Resource Management, continuous monitoring and flexibility in strategies are key to effectively managing toxic behavior (SHRM, 2022).

Conclusion: Lean Into Actively Addressing Toxic Behaviors

Ignoring or dismissing these negative behaviors can create lasting damage to your team. Effectively managing toxic employees is crucial for fostering a positive work environment. By recognizing and addressing toxic behavior promptly, providing support, and establishing clear consequences, leaders can promote a culture of respect and accountability. Embracing open communication and investing in employee development further enhances team morale and productivity. Implementing these strategies not only improves the work environment but also contributes to the overall success of the organization.