Toxic Work Environments: How to Improve Workspace Dynamics?

Enduringly dysfunctional work environments can lead to corrupt cultures that are harmful to employees' well-being and, ultimately, the company's long-term viability. While pinpointing a direct causal relationship can be difficult, Chief Human Resource Officers (CHROs) play a vital role in supporting the development of a respectful, purpose-driven culture. To address symptoms of workplace dysfunction, industry leaders highlight the importance of having prepared team managers to identify risks and tackle problematic symptoms before they metastasize into a substantial problems. 

“People do not leave companies, they leave experiences,” Blanca Ruth Ortuño, Sales HRBP Senior, Nestlé, told MBN. If a company experiences an unusually high turnover rate, it may be time to reassess the work environment, she said. Aspects that are important to pay attention to are usually associated with burnout, like excessive workload, not respecting employees' personal time and a lack of trust. “The COVID-19 pandemic changed company and employee relationships. Now, people value more flexibility and prioritize spending time with their family as well as other activities that create value for them. Organizations should not make them feel bad for being at the gym at 8 p.m. instead of being online to attend company matters,” said Verónica Muñoz, HRBP and Talent Director LATAM, the Estée Lauder Companies.

When finding a job, people are now looking for companies that are conscious and contribute to society, according to Muñoz. The working culture therefore plays an important role when people decide where to work and leaders are the main factor contributing to this culture. "Developing proper infrastructure, processes and tools is important. However, it would be worth nothing if you do not have good management. An indicator of a toxic environment is the kind of leader the organization has. If you do not have a good leader, you may have a toxic environment,” José Guerrero, HR Director, Alpura, commented. 

Defining the symptoms of a dysfunctional work environment can be challenging because there are often many contributors that affect employees in different capacities. Nevertheless, possible early warning signs include high turnover rates, climbing stress levels, diminishing transparency, normalization of aggressive language and behaviors, favoritism and receding advancement opportunities. Altogether, if ignored, these manifestations can have a detrimental effect on employee morale, productivity and the company’s long-term viability. As such, companies need to be aware of the signs of a toxic workplace and take steps to address any issues before they have a lasting impact on the company's culture, performance, and bottom line. Organizations should aim to generate engagement with employees by both listening to them and addressing their complaints. “When people are engaged and working in a healthy working environment, they perform over 300% above the average,” said Salvador Ortega, HR Sr. Director LATAM, Newell Brands. 

Ortega highlighted the importance of inclusion in the workplace to construct healthier working environments and stressed that companies must start asking themselves “How many spaces are we opening up to allow employees to be themselves?” Experts say that working spaces should aim to find a common ground for every worker to coexist but always consider that every employee is different in aspects like gender or sexual orientation, among other important factors. “If you need to force yourself to belong to an organization, you will drain yourself. Not allowing people to be themselves will lead to toxic working environments,” added Badía Rebolledo, CPO, Krispy Kreme. 

According to Badía, companies need to identify the factors that could lead to a toxic environment and address them promptly to prevent any negative impact on productivity. She emphasized the importance of HR departments being prepared to remove "toxic elements," even if those individuals are seen as important for delivering a project on time. While acknowledging that there may never be a "good time" to remove employees, she stressed that it is sometimes better to act quickly. By doing so, companies can prevent further damage and create a healthier, more productive workplace for all.