Are you feeling burned out? It’s easy to blame a heavy workload, personal stress, or the general sense of overwhelm. But have you stopped to consider that it might be your company’s culture at the root of the problem? 

Culture isn’t just a ‘nice-to-have’ – it’s a crucial element that directly impacts team performance, employee engagement, productivity, and satisfaction. 

So, how can you spot the signs of a toxic workplace? 

Workplace culture affects both productivity and our daily sense of wellbeing. A positive workplace culture creates a sense of belonging, encourages open communication, creates meaningful work, and recognises everyone’s contributions. A toxic environment, on the other hand, decreases energy, lowers morale, and often leads to high turnover. 

But what exactly causes a toxic work culture? 

A toxic workplace typically arises when team members disengage and stop striving for a positive atmosphere. However, as we know, leaders are responsible for team engagement, so when leaders fail to address issues head-on, this disengagement increases, increasing the severity of the challenges. Stress becomes the norm, expectations are set unreasonably high, and team members no longer feel valued. When leaders appear indifferent or fail to listen, the team switches off. 

Constant exposure to a toxic culture leads to more than just poor performance – it can be the undoing of an organisation. According to a study by Beyond Blue on workplace mental health in Australia, “One in five Australians have taken time off work in the past 12 months due to stress, anxiety, or mental health concerns.” 

Toxic cultures can either be glaringly obvious or more subtle, making it essential for leaders to stay attuned to evolving dynamics. So how can you spot and address these red flags before they cause serious damage? 

The 5 Signs of a Toxic Culture 

1. Lack of Enthusiasm to Get Work Done 

If the energy in the team feels perpetually flat, and everyone seems drained or disinterested consistently, it’s more than just a case of ‘Monday blues.’ Low morale can quickly lead to unmotivated and restless employees. If the entire team feels burnt out, disengaged and deflated, it’s likely a symptom of a toxic culture. 

Innovation halts, ideas stop being presented, and the team stagnates at a BAU level. People leave, relationships breakdown and feedback stops being given. 

2. Poor Leadership 

Leadership sets the tone for culture. Leaders who dismiss concerns, belittle others, or fail to support their teams create an environment of fear and frustration. When employees feel intimidated or devalued, it stifles creativity, innovation, and growth. 

3. Lack of Trust and Communication 

Trust is the bedrock of any successful business. If trust has to be ‘earned’ rather than being built openly and collaboratively, employees will hold back, reducing their willingness to contribute fully. When communication is lacking or fragmented, it fuels distrust and dysfunction. Communication goes two ways. 

4. Fear of Failure 

We all make mistakes, but if the workplace culture punishes failures instead of viewing them as learning opportunities, people will hesitate to take risks or share new ideas. A lack of psychological safety – where people feel comfortable stepping outside their comfort zones – is a hallmark of a toxic culture and a significant obstacle to growth. 

5. High Absenteeism and Turnover 

When skilled and passionate team members start leaving in droves, it’s a clear indicator of a deeper issue. People move on for various reasons, but when your office feels like a revolving door, it’s a red flag that the culture might be pushing people out. 

What should you do as a leader? 

“Customers will never love a company until the employees love it first.”

Simon Sinek 

A toxic culture often stems from leadership behaviours. Leaders need to reflect on their own actions and create a plan to foster respect, trust, empathy, and open communication. Reaffirm the organisation’s values, demonstrate your commitment to cultural improvement, and ensure your team feels heard and supported. These steps are essential to building a healthier work environment. 

Are you looking to improve your workplace culture? At Corporate Edge, we’re experts in creating positive and sustainable organisational cultures. Our mission is to help leaders and teams reach their full potential, creating lasting success and growth. 

Want to learn how we can support your leadership and culture alignment efforts? Get in touch at hello@corporate-edge.com.au or give us a call on +61 2 9566 1422.