Signs of a Toxic Workplace: 7 Red Flags to Look Out For

A toxic workplace can significantly impact employees' well-being, productivity, and job satisfaction. While bullying or harassment are obvious signs of a toxic work culture, other subtle signs can be just as damaging. Recognising these signs early on can prevent negative consequences, such as decreased productivity, high turnover rates, and reputational damage.

Signs of a toxic workplace: red flags to look out for

Red flag 1: Poor communication and lack of transparency

Poor communication and lack of transparency are common signs of a toxic workplace. When employees are unclear about expectations, lack feedback, or have unresponsive management, they quickly become frustrated and mistrustful. According to a Gallup study, only 13% of employees strongly agree that their organisation does a great job of sharing information with them.

Poor communication leads to misunderstandings, errors, and conflicts, all contributing to a toxic environment. Clear communication and transparency are essential for building trust and fostering a positive, productive workplace culture.

Regular pulse surveys, like those offered by Elker, can help organisations gauge employee sentiment and identify areas for improvement in communication. Actively seeking feedback and addressing communication issues can create more open, collaborative, and productive work environments.

Red flag 2: Unfair treatment and favouritism

Unequal opportunities, biased decision-making, or preferential treatment leads to demotivation and decreased morale. According to the Australian Human Rights Commission, 23% of Australian workers have experienced discrimination in the workplace. This includes 49% of mothers and 27% of Australians aged 50 years and older who reported negative attitudes, decreased pay, hours changed against their wishes, missed growth opportunities, denied leave and job loss.

Unfair treatment creates a sense of injustice and discrimination, eroding trust and undermining employee engagement. Many employees who experience unfair treatment look for another job or resign.

Organisations can implement fair and transparent practices, such as anonymous reporting and case management systems like those provided by Elker, to combat these issues. Ensuring all employees are treated equitably creates a more inclusive and supportive workplace.

Red flag 3: Lack of accountability and blame-shifting

A lack of accountability and blame-shifting are common signs of a toxic workplace. When individuals deny responsibility for their actions, blame others for their mistakes, or face no consequences for misconduct, it creates a culture of mistrust and decreased motivation. According to the Ethics & Compliance Initiative, 41% of employees have observed misconduct in the workplace, but only 63% reported it.

When accountability is absent, employees feel their efforts go unrecognised or their concerns are not taken seriously. This leads to a culture of blame-shifting, where individuals prioritise protecting themselves over working towards common goals. Promoting accountability is essential for fostering a culture of responsibility and respect.

Implementing a robust case management system, like the one offered by Elker, helps organisations track and investigate misconduct, ensuring all employees are held to the same standards and maintaining transparency throughout the process.

Red flag 4: High turnover rates and burnout

When employees frequently resign, struggle to be retained, or experience burnout, it signals underlying issues such as poor management, lack of opportunities, excessive stress, or an unsatisfying work environment.

In Australia, the average employee turnover rate is 15% according to the Australian Bureau of Statistics. Gallup reports that burned-out employees are 63% more likely to take a sick day and 23% more likely to visit the emergency room. High turnover rates are costly for organisations in recruiting and training new employees.

Burnout, characterised by exhaustion, cynicism, and decreased efficacy, leads to physical and mental health problems, decreased productivity, and increased absenteeism. Organisations can conduct regular pulse surveys and provide anonymous reporting channels to identify and address the root causes of high turnover and burnout.

Red flag 5: Gossip and rumours

Gossip and rumours are signs of a toxic workplace culture. When employees engage in spreading misinformation, negativity, or speculation, it erodes trust, decreases morale, and damages relationships. Gossip creates an atmosphere of discomfort and mistrust, where employees feel unable to communicate or collaborate effectively.

To combat office gossip and rumours, organisations must address these behaviours and promote a positive, respectful work culture. This involves setting clear expectations for professional conduct, providing training on effective communication and conflict resolution, and modelling appropriate behaviour at all levels.

Anonymous reporting systems, like those provided by Elker, provide employees with a safe, confidential channel to raise concerns or report misconduct. Fostering a culture of open, honest communication and addressing negative behaviours proactively creates more positive, productive work environments.

Red flag 6: Lack of diversity, equity, and inclusion

A lack of diversity, equity, and inclusion (DEI) is a significant red flag of a toxic workplace. When an organisation exhibits discriminatory practices, unequal opportunities, or a lack of representation, it creates an environment where certain groups feel undervalued and marginalised. The Australian Human Rights Commission reports that 25% of Australian workers have experienced racial discrimination at work. McKinsey found that companies with diverse workforces are 35% more likely to outperform their less diverse peers.

A lack of DEI contributes to toxic work environments. Employees who feel excluded or discriminated against experience decreased job satisfaction, engagement, and motivation. This leads to higher turnover rates, reduced productivity, and a negative impact on overall company culture. A homogeneous workforce limits the range of perspectives, ideas, and innovations that a diverse team can bring.

Organisations must actively promote DEI in hiring practices, employee development, and day-to-day operations. This involves setting diversity goals, providing unconscious bias training, and regularly reviewing policies and procedures for fairness and inclusivity. Implementing anonymous reporting and case management systems, like those offered by Elker, helps prevent discriminatory practices and promote inclusion by providing employees with a safe, confidential channel to raise concerns or report misconduct.

Red flag 7: Inadequate reporting and whistleblower protection

When employees fear retaliation for speaking up, lack trust in their organisation's reporting processes, or believe their concerns will not be adequately investigated, it creates a culture of silence and enables misconduct to go unchecked.

According to the Ethics & Compliance Initiative, 62% of employees believe their organisation does not have an effective system for reporting misconduct. At the same time, the Australian Securities and Investments Commission found that 30% of whistleblowers experience retaliation after reporting misconduct.

When employees feel unable to report misconduct or raise concerns safely, it leads to a toxic environment where problems fester and escalate. This results in decreased trust, reduced employee engagement, workplace dysfunction, and a higher likelihood of legal and reputational risks for the organisation. Implementing a robust reporting system and strong whistleblower protections promotes a culture of transparency, accountability, and psychological safety.

Elker's reporting and case management platform offers features to address these challenges. With end-to-end encryption, anonymous reporting options, and third-party legal assistance, Elker provides employees with a secure, confidential way to report misconduct or raise concerns. Investing in effective reporting and whistleblower protection measures fosters a speak-up culture, identifies and addresses problems early, and creates a more positive, ethical, and compliant workplace.

Strategies to combat toxic work environments

As employers, it's our ethical and legal duty to create a safe work environment free of psychosocial hazards. Creating a mentally healthy workplace also makes good business sense as it increases productivity, and reduces absenteeism and turnover costs.

Combating a toxic work environment requires a proactive and multifaceted approach. Organisations must be committed to fostering a culture of respect, inclusivity, and accountability at all levels. Here are some strategies that organisations can adopt to combat a toxic work environment and promote a positive, productive, and inclusive workplace culture:

Communicate company policies clearly

Clearly communicating company policies and applying them consistently is essential. Organisations should ensure that all employees understand the policies and expectations and that they are regularly reviewed and updated. This can be achieved through regular training sessions, workshops, and awareness programs. By integrating company policies into Elker's reporting pathways, organisations can make it easy for employees to report policy violations and for managers to address them in a timely, consistent manner.

Conduct regular employee pulse surveys

Conducting regular employee pulse surveys is another important strategy for combating a toxic work environment. These surveys can help gauge employee sentiment, measure engagement and morale, and identify areas for improvement in the workplace culture. By actively seeking feedback and acting on the results of these surveys, organisations can demonstrate their commitment to creating a positive, responsive workplace. Elker's pulse survey feature allows organisations to easily and regularly audit their company's culture and gain insights into employee engagement and safety concerns.

Address toxic behaviours early on

Addressing toxic behaviours early on is crucial for preventing them from becoming entrenched in the workplace culture. Organisations should encourage employees to report toxic behaviours early on, before they escalate, and provide training to managers on how to identify and address these behaviours effectively. Elker's real-time analytics can help organisations identify trends and areas for early intervention, allowing them to address potential problems before they escalate.

Foster a culture of psychological safety

Fostering a culture of psychological safety is essential for combating a toxic workplace. When employees feel safe to speak up, ask questions, and challenge the status quo, they are more likely to engage in open, honest communication and collaborate effectively. Organisations should encourage this type of communication at all levels and provide training to managers on how to create a psychologically safe work environment. Elker's anonymous reporting feature can help create a safe space for employees to raise concerns without fear of retaliation.

Promote a healthy work-life balance

Promoting a healthy work-life balance is another key strategy for combating a toxic work environment. Organisations should encourage employees to take breaks, use their vacation time, and disconnect from work outside of business hours. Providing flexible work arrangements, such as remote work or flexible schedules, can also help employees better manage their personal and professional responsibilities. Elker's pulse surveys can help organisations gauge employee perceptions of work-life balance and identify areas for improvement.

Prioritise employee growth and development

Prioritising employee growth and development is another important strategy for combating a toxic work environment. When employees feel that their organisation is invested in their professional growth and success, they are more likely to be engaged, motivated, and committed to their company's work culture. Organisations should provide opportunities for employees to learn new skills, take on new challenges, and advance their careers. Elker's pulse surveys can help organisations identify employee development needs and preferences, allowing them to tailor their offerings to the unique needs of their workforce.

Implement anonymous reporting and case management

Implementing an anonymous reporting and case management system is a critical strategy for combating a toxic work environment. By providing a safe, confidential way for employees to report misconduct and raise concerns, organisations can foster a speak-up culture and ensure that important issues are addressed in a timely, effective manner. Elker's anonymous reporting feature provides a safe, secure way for employees to report misconduct, while its customisable case management feature allows organisations to tailor their processes to their specific needs and workflows.

Promote bystander awareness

Promoting bystander awareness is another important strategy for combating a toxic work environment. Organisations should encourage employees to speak up when they witness toxic behaviors or misconduct and provide training on how to be an effective bystander and intervene safely. Elker's pulse surveys can help organisations gauge employee awareness and willingness to intervene as bystanders, while its customisable reporting pathways make it easy for employees to report witnessed misconduct.

Regular check-ins

Conducting regular check-ins with employees is another important strategy for combating a toxic work environment. These check-ins provide an opportunity for managers to connect with their team members, discuss progress and challenges, and identify any concerns or issues that may be contributing to a negative workplace culture. Elker's case management feature can be a valuable tool for tracking and documenting these check-ins, ensuring that any concerns or action items are properly addressed and followed up on.

Hybrid working options

Offering hybrid working options, such as a combination of in-office and remote work, can be another effective strategy for combating toxic or hostile work environments and environment. Hybrid work arrangements provide employees with greater flexibility and autonomy, allowing them to better manage their work-life balance and reduce stress and burnout. Elker's pulse surveys can be a valuable tool for gauging employee preferences and experiences with hybrid work arrangements, allowing organisations to continuously improve and refine their approach.

How Elker can transform your workplace toxic environment with anonymous reporting tools

Find out how Elker can transform your company culture

Creating a positive and inclusive workplace culture requires effort, commitment, and the right tools. At Elker, we believe that a fostering positive workplace culture is not only the right thing to do, but it's also good for business.

Elker is designed to help organisations create a safe, supportive, and inclusive work environment where employees can thrive. With anonymous reporting tools, pulse surveys and efficient case management, Elker allows for the early detection and proactive response to address workplace issues.

Want to learn more about how Elker can transform your company culture? Book a demo of the platform today.

Frequently asked questions

What qualifies as a toxic work environment?

A toxic work environment is characterised by negative behaviours, poor communication, and a culture of fear that harms employee morale and well-being. Common signs of a toxic workplace environment include office gossip, blame-heavy attitudes, role confusion, and a lack of work-life balance. In toxic work environments, employees may experience physical symptoms like sleep problems and body aches due to high levels of work stress.

Toxic workplaces often have disengaged employees, high turnover rates, and a general atmosphere of negativity that stifles productivity and innovation. Toxic behaviours such as bullying, sexual harassment, and discrimination can also contribute to a hostile work environment. Ultimately, a toxic work culture prioritises short-term gains over the long-term well-being of employees, leading to a mass exodus of top performers during events like the Great Resignation.

When to leave a toxic work environment?

It's important to recognise the signs of a toxic workplace and know when it's time to leave for the sake of your mental health and career growth. If you're experiencing chronic work stress, physical symptoms like sleep problems or body aches, or feel disconnected from your co-workers, it may be time to consider a change. Other red flags include a lack of opportunities to learn skills, unclear expectations or role confusion, and a blame-heavy culture where employees are constantly criticised.

If you've tried to address issues with your manager or HR department without success, or if the toxic culture seems to permeate the entire organisation, it's probably best to start looking for a new job. Life is too short to stay in a work environment that makes you miserable, so prioritise your well-being and start planning your exit strategy. Remember, there are plenty of companies out there that offer a better work-life balance and a more positive workplace culture.

How to find out if a company is toxic?

Job seekers can look for warning signs of a toxic work culture during the interview process and through research. Pay attention to how the interviewer speaks about the company culture, co-workers, and work-life balance. You can also ask about employee turnover rates, opportunities for growth and development, and how the company handles conflicts or mistakes. Outside of the interview, research the company on sites like Glassdoor or Indeed to see what current and former employees have to say about their experiences.

If you notice patterns of complaints about toxic behaviours, poor management, or high levels of stress, it's probably best to steer clear. You can also reach out to people in your network who have worked at the company to get their honest opinions. Remember, a toxic workplace can have serious consequences for your mental health and career growth, so it's important to do your due diligence before accepting a job offer.