05/12/2023
Why is tackling toxicity in the workplace important?
A 2022 article by MIT Sloan Management Review discusses the effect of workplace toxicity on employee turnover.
Nicknamed “The Great Resignation,” the mass attrition of workers between April and September of 2021 very clearly affected workplaces with a reputation for having a healthier culture much less than those that did not. There are several predictors of employee resignation that rate higher than how employees view their compensation, including a failure to recognize employee performance, a poor response to COVID-19, and most notably a “toxic corporate culture.”
A toxic workplace is “10.4 times more likely to contribute to attrition than compensation” and is the highest predictor of attrition measured in the 2018 research article by Rubenstein et. al (linked in the attached article). In the analysis by MIT Sloan, elements considered to be contributors to toxic cultures include “failure to promote [DE&I]” and unethical behaviour.
As an aside, it could be said that another high-ranking predictor of employee attrition, “a failure to recognize employee performance”, can be considered to be an active contributor to a toxic organisational culture.
Workplace toxicity leads the pack in being the primary cause of employee turnover, and it has several other lasting effects including a reduction in productivity and high absenteeism.
In short, a toxic work environment is very much like a cancer that will grow out of control and leech on various areas of your business until it is almost too late to stop. Making a change as soon as you understand that there is a problem (and know, there is always a problem) can allow you to limit, and even reverse, the effects of workplace toxicity on your employees and the success of your organisation.
Check out the article by Sloan Management Review below!
Data analysis reveals the top reasons behind the Great Resignation and actions managers can take to reduce attrition.