A positive company culture has been shown to increase productivity, improve business agility, offer better employee engagement, drive organizational purpose and improve results, which combine to deliver a clear competitive advantage. But, workplace culture has a much wider remit than that, with the potential to impact positively on local communities and beyond.
What’s the definition of negative workplace culture?
A negative workplace culture generally consists of poor communication, an unsupportive environment, a competitive ‘everyone for themselves’ mindset (the opposite of a people-first approach).
Toxic environments foster & encourage unhealthy working practices, (such as working through lunch, or working long hours to be seen to be efficient – even when research shows it’s not productive).
A negative work environment is one where bullying and harassment behaviours can thrive.
What are the causes of a negative company culture?
Poor company culture can be caused by a number of factors. It usually happens because leaders have created an environment where communication is poor, there is a focus on profit (not on employees) and hyper-competition, micromanagement or bullying behavior exist.
Consequences of negative culture include gossiping, lack of trust, low employee engagement & morale, as well as higher rates of absenteeism. Businesses that operate in this way are likely to have a high employee turnover rate, little awareness of inclusivity or DEI practices, and are less likely to listen to feedback from their team.
Negative workplace culture isn’t something that’s easily contained. It spills out into employee’s lives, with a much wider impact. Here’s how:
Economic & environmental costs
Poor economic performance has huge implications for everyone. In an increasingly competitive global market, businesses not fulfilling their potential are in danger of going to the wall. This has an effect on jobs and consumer spending. A downward spiral of poor economic performance can end in recession. It’s a problem that goes further than the businesses it closes.
On the plus side, corporate social responsibility (CSR) and environmental, social and governance (ESG) policies are examples of growing aspect of positive company culture, which has far-reaching effects on the world around us.When businesses nurture a culture that supports responsibility and care, it’s easier to embed environmental considerations into everyday ways of working. That might mean cutting unnecessary waste, reducing energy use or making more conscious choices as a team.
Contagion
Toxic cultures infect others. When a toxic culture causes a business to close (or lose customers/staff/clients), this has ramifications for other businesses in the supply chain. People that work in a toxic environment often carry this with them – or sadly, in some cases, this might be the only work culture they’ve ever known. This can often manifest as micromanagement, or poor leadership behavior (that then perpetuates more negative culture filtering down- sigh).
Trust
Poor company culture promotes unethical behavior both inside and out of the workplace. Unethical behavior destroys trust. Disengaged employees also develop a lack of trust. When this behavior spills into life outside of work it has implications for the kind of community we live in. A lack of empathy and trust in society fuels a culture of division and fear. A decade ago, former US President, Barack Obama, said “The biggest deficit we have in our society and world right now is an empathy deficit. We are in great need of people being able to stand in somebody else’s shoes and see the world through their eyes.”
It is positive company culture that will help us to do this, not negative. Businesses have a responsibility, just like individuals, to pursue the best for the society and environment we live in. A lack of trust creates barriers within a business and beyond it.
Wellbeing & health costs
Employee health is probably one of the most concerning aspects of a negative company culture. A negative vibe in the workplace can lead to poor mental health outcomes. In fact, harassment and conflict at work can have a detrimental effect on our physical and emotional wellbeing, as well as our mental health. This has implications for business productivity, employee relations, family dynamics and society as a whole.
