What is a Toxic Work Environment Costing Your Organization?

Your Company Culture is the Ticket

A recent SHRM survey of 1,014 individuals asked participants to look back five years (2014-2019) to evaluate who sets the culture and how they feel about their workplace. Here is a summary of their responses:

  • 76% said their manager sets the cultural tone of the organization
  • 49% have thought about leaving their present company due to its culture
  • Only 44% feel extremely or very fulfilled in their current job
  • 41% said they believe their age has affected their career path
  • 25% dread going to work
  • 20% have left a company due to a problematic company culture
  • 10% experienced bias because of their political views (i.e., corporate activism)

The net results? An estimated loss of $223 Billion of revenue for companies large and small.

Source: The High Cost of a Toxic Workplace Culture: How Culture Impacts the Workforce – and the Bottom Line.

The key is to create a positive company environment, in the first place to avoid these types of problems.

Five Ways to Avoid a Toxic Work Environment

Develop, Post, and Train Managers on Your Core Values.

Here are three great examples:

Adidas: Through sport, we have the power to change lives. Our mission is to be the best sports company in the world.

Ben & Jerry’s: Our Product Mission drives us to make fantastic ice cream—for its own sake. Our Economic Mission asks us to manage our company for sustainable financial growth. Our Social Mission compels us to use our company in innovative ways to make the world a better place.

Starbuck’s: “With our partners, our coffee and our customers at our core, we live these values: Creating a culture of warmth and belonging, where everyone is welcome. We are acting with courage, challenging the status quo, and finding new ways to grow our company and each other. Being present, connecting with transparency, dignity, and respect, delivering our very best in all we do, holding ourselves accountable for results.

Be sure to lead by example and hold teammates accountable if they deviate from this policy.


Have a “No Bullying, No Gossip” Zero-Tolerance Policy.

toxic, bullying, workplace bullying

Workplace bullying and gossiping about others can quickly lead to a toxic environment, causing employees to leave as soon as possible.

Consider training new and existing employees at least once a year about your policy and the ramifications of breaking it.


Address Toxic Turnover Rates.

According to the U.S. Bureau of Labor Statistics, the average turnover rate in the U.S. is 12-15% annually. According to LinkedIn, an average annual worldwide employee turnover rate is 11 percent.

If one of your departments or managers has a turnover rate much higher than these averages, now is a perfect time to investigate the problem and replace your “bad apples.”

Look at Tardy and Absenteeism Reports.

If employees are supposed to be at their desks at 8 am but are showing up ten or fifteen minutes late, or are frequently calling in sick, you may have a disengaged workforce. Also, please remember their managers set the tone. So if they are often late or take off without telling others, the managers are letting others know it’s okay to be late.

Remember, Above All, it starts at the Top.

Jamie Dimon, Chairman of JPMorgan Chase & Co., said, “Employers are investing in their workers and communities because they know it is the only way to be successful over the long term. These modernized principles reflect the business community’s unwavering commitment to continue to push for an economy that serves all Americans.”

Alex Gorsky, Chairman of the Board and Chief Executive Officer of Johnson & Johnson, added, “It affirms the essential role corporations can play in improving our society when CEOs are truly committed to meeting the needs of all stakeholders.”

Three Key Benefits of Having a Positive Culture

  • Higher retention rates because people want to come to work
  • Higher productivity rates because the company has invested in the technology each employee requires
  • Improved employee engagement due to better physical work settings

SACS Consulting and Investigative Services is Here to Help

Contact us at 330-255-1101 or 888-722-7937 for assistance on setting a positive work environment through training and procedures. Our experts are waiting for your call!