How to Deal with Toxic Employees in the Workplace

A “toxic workplace” is often characterised by significant personal conflicts and disruptions, frequently stemming from toxic employees. These individuals not only damage team dynamics but can also severely harm productivity and the overall work environment. This blog explores practical strategies for dealing with toxic employees effectively, ensuring a healthier work environment for everyone.

Understanding the impact of toxic employees

Toxic employees contribute to a negative atmosphere where challenges and conflicts seem to persist. The ripple effect of their behaviour can lead to low morale, high employee turnover, and increased stress across teams. In some cases, toxic behaviours may even manifest as bullying, causing more severe consequences like burnout, anxiety, depression, or damage to individuals’ self-esteem. Toxicity within a team can also lead to a culture of mistrust and poor communication, which undermines the cohesion necessary for a productive workplace.

For businesses, addressing these behaviours promptly is essential, not only to protect other employees but to safeguard the company’s overall success and reputation. Failure to act can result in higher absenteeism, decreased engagement, and ultimately, a decline in overall company performance.

Identifying toxic behaviour

Not all problematic behaviour is immediately identifiable, but some common signs of a toxic employee include:

• Constantly undermining colleagues or managers
• Gossiping, spreading negativity, or creating cliques
• Refusing to accept responsibility or deflecting blame onto others
• Displaying aggressive or bullying behaviours
• Frequent complaints without constructive solutions

Understanding these signs can help HR professionals and managers intervene early before the toxicity spreads.

Step 1: Provide direct, constructive feedback

Once a toxic employee has been identified, the first step is to provide them with direct, constructive feedback. Clarity is key: during the discussion, be tactful but clear about the specific behaviours that are problematic, supporting your feedback with concrete examples of how their actions are negatively impacting the team.

Frame the conversation with the intent to help them improve, highlighting what is expected moving forward. Some toxic behaviour stems from a lack of self-awareness, so providing feedback in a way that encourages self-reflection and change can be an effective starting point. However, avoid ambiguity and ensure that you outline the consequences if these behaviours continue.

Step 2: Create a structured improvement plan

Providing feedback alone may not be enough. To effectively manage toxic employees, consider establishing a performance improvement plan (PIP) or an equivalent structured approach. This plan should outline:

• Clear behavioural expectations
• A timeline for expected improvements
• Resources or support available to help the employee meet these expectations
• A schedule for regular check-ins or reviews

The goal is to give the employee an opportunity to rectify their behaviour while holding them accountable for making real changes. Documenting these steps is crucial to ensure there is a clear record of the company’s efforts to support the employee.

Step 3: Schedule regular follow-up meetings

After providing initial feedback and creating a plan, it’s essential to regularly monitor progress. Scheduling follow-up meetings allows you to track improvements—or the lack thereof—over time. During these meetings, provide additional feedback, acknowledge any positive changes, and reiterate the importance of continued progress.

If little to no progress is made, document this lack of improvement. Having detailed records of these conversations and actions is crucial if the situation escalates. It also ensures fairness in the process, which is critical for both legal reasons and employee relations.

Step 4: Address team dynamics

Toxic employees don’t just affect themselves—they often disrupt the wider team. If a toxic employee’s behaviour has impacted others, it’s important to rebuild trust and morale within the team. Consider running team-building sessions or open discussions to allow employees to express concerns, reflect on improvements, and re-establish a positive team dynamic. Reinforcing your company’s commitment to a healthy, supportive workplace can also help alleviate any lingering negative effects of the toxic behaviour.

Step 5: Consider termination as a last resort

If, despite structured interventions, the toxic behaviour continues, it may be necessary to consider termination. While this should always be the final step, it is essential for the well-being of the team and the business overall. Handling terminations properly is critical to avoid claims of unfair dismissal, so always follow the appropriate legal and HR processes.

In some cases, removing a toxic individual can lead to a positive shift in workplace culture, boosting team morale and productivity. It also sends a clear message that disruptive behaviours will not be tolerated, reinforcing a culture of accountability and respect.

Preventing Toxic Behaviour in the Future

Dealing with a toxic employee is a reactive measure, but prevention is always better than cure. Establishing a workplace culture where feedback is encouraged, performance is regularly reviewed, and communication is transparent can help prevent toxic behaviours from taking root.

• Recruitment – hire for both skills and cultural fit to ensure new hires align with your company’s values.
• Onboarding – ensure new employees understand the company’s expectations around behaviour and teamwork.
• Training – provide leadership training and employee well-being programs to support a healthy, respectful workplace.
• Communication – keep communication channels open and encourage employees to report concerns early.

Conclusion

Dealing with toxic employees is a challenging but essential task for any business. By taking a structured and empathetic approach, companies can manage toxic behaviours effectively, leading to a healthier, more productive work environment. Remember, addressing toxic behaviours early is key to preventing wider disruption, and creating a positive workplace culture will benefit both employees and the business in the long term.

If you would like further insights on managing employee relations or need support in handling complex employee issues, feel free to explore our Employee Relations page.