How to Handle Toxic Employees

Introduction

The workforce forms the foundation upon which organizational success is built. However, not all employees contribute positively. Some may exhibit behaviors that hinder an organization's performance, a phenomenon known as "toxic behavior" (Housman & Minor, 2015). This guide delves into the intricacies of identifying and managing toxic employees, drawing upon empirical research conducted by Michael Housman, Dylan Minor, and Kylie Ora Lobell from the Society for Human Resource Management (SHRM). 

What is meant by Toxic Employees

Workplace toxicity, characterized by negative or harmful behaviors, can significantly impact an organization's operations and financial well-being (Housman & Minor, 2015). These detrimental behaviors, ranging from poor performance to misconduct, can hinder productivity, escalate regulatory scrutiny, and incur substantial legal liabilities. Consequently, organizations must effectively identify, manage, and mitigate these toxic elements to foster a healthy and productive work environment. 

What are the characteristics of a Toxic Employee

Identifying toxic employees can be a daunting task, as their behaviors may not always be overtly apparent. However, understanding the underlying characteristics and circumstances that contribute to toxic behavior can provide valuable insights for early detection and intervention. One such factor is excessive self-confidence (Housman & Minor, 2015). Overconfident individuals may tend to overestimate their abilities, disregard the contributions of others, and engage in behaviors that undermine team dynamics and overall productivity. Recognizing these traits can serve as red flags, prompting further investigation and appropriate measures to address potential toxicity. 

What is the impact to the organization from a toxic employee

The presence of toxic employees can have a profound and detrimental impact on an organization's overall health and success. Their negative behaviors can permeate the workplace, leading to a decline in team morale, increased employee turnover, and even reduced performance among unaffected colleagues (Housman & Minor, 2015). Furthermore, toxic employees can expose the organization to substantial legal and regulatory costs, arising from potential lawsuits, investigations, and corrective actions. 

How can toxic employees affect an organization’s performance

Toxic employees can have a significant detrimental impact on an organization's performance. Their negative behaviors can erode team morale, increase employee turnover, and hinder collaboration, ultimately leading to decreased productivity and profitability (Housman & Minor, 2015). 

The study by Housman & Minor (2015) found that addressing toxic employees can yield substantial performance gains. They observed that replacing a toxic worker with an average worker resulted in a 12% increase in performance. However, replacing an average worker with a superstar worker only led to a 9% increase. This highlights the importance of prioritizing the management of toxic behavior rather than solely focusing on nurturing top performers. 

Effectively managing toxic employees requires a multi-pronged approach that involves: 

• Identification: Recognizing the signs of toxic behavior, such as consistent negativity, blaming others, and taking credit for others' work.
• Intervention: Addressing toxic behavior directly and promptly through performance management, counseling, or, in severe cases, termination.
• Prevention: Fostering a positive and inclusive work environment that emphasizes teamwork, respect, and open communication. 

By proactively addressing toxic behavior, organizations can create a healthier and more productive work environment, leading to improved employee morale, reduced turnover, and enhanced overall performance. 

How can an organization address the problem faced by a toxic employee

Addressing the issue of toxic employees necessitates a strategic approach that encompasses comprehensive HR policies, targeted training, and, when necessary, disciplinary measures (Lobell, 2023). 

Early Identification: 

• Policy Development: Implement clear HR policies that explicitly define and prohibit toxic behaviors, ensuring that all employees are aware of the organization's expectations and the potential consequences of non-compliance.
• Employee Feedback: Establish mechanisms for employees to anonymously report toxic behavior without fear of retaliation. This could include an online reporting system, designated HR representatives, or employee surveys.
• Manager Training: Equip managers with the skills to recognize and address early signs of toxic behavior, providing them with the knowledge and tools to intervene effectively. 
  

Training and Support: 

• Behavior Modification: Offer training programs focused on behavior modification, helping employees develop emotional intelligence, conflict resolution skills, and empathy.
• Mentorship: Provide mentorship opportunities for toxic employees to connect with experienced and positive colleagues who can model appropriate workplace behavior.
• Employee Assistance Programs (EAPs): Utilize EAPs to provide confidential counseling and support services to help employees address underlying personal or professional issues that may be contributing to toxic behavior. 

Disciplinary Actions:

• Progressive Discipline: Implement a progressive discipline policy that outlines a clear sequence of actions in response to toxic behavior, starting with verbal warnings and escalating to formal written warnings, probation, and, in extreme cases, termination.
• Documentation: Thoroughly document all instances of toxic behavior, including dates, specific incidents, and witness statements, to provide a clear and objective record for any potential disciplinary proceedings.
• Fair and Consistent Enforcement: Ensure that disciplinary actions are applied fairly and consistently across all employees to maintain a sense of equity and reinforce the organization's commitment to a positive work environment.

By implementing these strategies, organizations can effectively address the issue of toxic employees, fostering a healthier, more productive, and more inclusive workplace.

What remedial actions can an organization undertake to mitigate such recruitment

To mitigate the recruitment of toxic employees, organizations can incorporate personality tests and other screening methods in their hiring process. Moreover, fostering a positive work culture and setting clear expectations can also help prevent the development of toxic behaviors (Lobell, 2023).

Fostering a positive work culture can also help prevent the development of toxic behaviors. This can be done by creating a work environment that is supportive, respectful, and inclusive. Organizations should also have clear expectations for employee behavior and communicate these expectations to all employees.

Here are some specific steps that organizations can take to mitigate the recruitment of toxic employees:

• Use personality tests and other screening methods to identify candidates who are likely to be good fits for the organization's culture.
• Conduct thorough reference checks and background checks on all candidates.
• Clearly communicate the organization's expectations for employee behavior.
• Provide employees with training on how to identify and deal with toxic behavior.
• Create a work environment that is supportive, respectful, and inclusive.

By taking these steps, organizations can create a more positive and productive work environment for all employees.

Conclusion

Handling toxic employees is a critical aspect of human resource management. By understanding the characteristics of toxic workers and implementing strategies to manage them, organizations can significantly enhance their overall performance. Remember, a harmonious workplace is key to achieving organizational success. 

References:

Housman, M., & Minor, D., 2015. Toxic Workers. Harvard Business School. [Online]

Available at: https://www.hbs.edu/ris/Publication%20Files/16-057_d45c0b4f-fa19-49de-8f1b-4b12fe054fea.pdf

[Accessed 26 November 2023].

Lobell, K. O., 2023. Dealing with Toxic Employees. Society for Human Resource Management. [Online]

Available at: https://www.shrm.org/resourcesandtools/hr-topics/people-managers/pages/managing-toxic-employees.aspx

[Accessed 26 November 2023].