This is How You Stop Your Culture from Turning Toxic

by Greg Harris, president and CEO of Quantum Workplace

Having a strong and positive organizational culture solves many of the problems that companies face. Everything from recruiting issues to low employee engagement can be avoided when the right culture is in place. On the flip-side, having a toxic culture can be devastating.

In hindsight, it’s easy to look at a failed organization and identify all the aspects of its culture that led to its demise. The early stages of negative culture change, however, are not as easy to see. But as with most problems, early detection is key to avoiding or fixing any fallout from an issue. So what are the first red flags that pop up when a company’s culture is about to turn toxic? And more importantly, how can they be corrected?

Here are four early warning signs that an organizational culture is becoming toxic:

1. Trust Is Declining

Trust doesn’t get enough credit when it comes to the success of an organization. It’s taken for granted and assumed that confidence between team members just happens. But in reality, there needs to be a concerted effort to develop and maintain trust in a company.

A great way to gauge the level of trust is to find out employees’ feelings on company communication. Unfortunately, a 2016 report from Quantum Workplace, found that 21.1% of employees lack confidence in how open and honest the communication in their company is.

Begin to rebuild failing trust by asking for and valuing employee feedback. Whether it’s formally or informally, asking employees for their input and their opinions gives leaders the chance to show they value what employees have to say. Then, provide employees with honest answers to their suggestions and concerns.

Regular interactions like this keeps trust alive and well. And trust and happy employees go hand-in-hand. The 10 Company Culture Insights From Seriously Awesome Workplaces report from Quantum Workplace, found 79% of employees who work at the most engaged company believe their leaders are honest and trustworthy. Of employees who work at the least engaged companies, only 54% say the same. So the moment trust falters in a company, take steps to begin to rebuild it before it destroys engagement.

2. It’s Impossible to Attract Young Talent

As Millennials continue to take over the workforce, it becomes more and more vital that an organization is able to attract that talent. However, this is near impossible for a company with a weak or toxic culture. A 2015 Virgin Pulse survey found that for 77% of Millennials, organizational culture is just as or even more important to them as base salary and benefits.

If Millennial recruiting efforts are failing, chances are they are smelling out problems with the culture. In order to turn things around, try incorporating factors that young employees value, like meaningful work they can form a connection with. The Virgin Pulse survey found that 73% of Millennials want to know the mission of a company is something they can get behind.

That doesn’t mean an organization’s mission statement and values should be changed to fit the expectations of Millennials. Rather, leaders need to find a better way to make the mission clear and a part of every single day in the office.

Tying the company mission to the ways decisions are made or the actions that are taken leaves no room for doubt about what the company stands for. That level of clarity means Millennials whose values align with the organization can easily forge a connection with the organizational culture.

3. Lack of Consistency In What Defines The Company

At its core, the company culture is what defines the organization. It’s what makes it unique and what unites the team together. However, when a culture is inconsistent or weak, it’s difficult to keep it from morphing into something toxic.

Consider this: say a company hires a new employee, but doesn’t clearly communicate the organizational culture to him. Within a week, he’s faced with a situation with a client and unsure how to react. Without a thorough understanding of the culture, what are the chances his actions align with the company’s expectation? Now, based on his incorrect actions, the client’s view of the company changes. Over time, enough of these culture inconsistencies leads to a complete change in what defines the company.

Unfortunately, most companies have employees who don’t have a firm grasp of the culture. A 2015 ALEX survey found that 18.5% of new employees didn’t gain an understanding of the culture until after 90 days of employment. Furthermore, 11.3% never gained a good understanding.

Keep things from getting out of hand by constantly reinforcing what the company is and what it stands for. That way, there will be no doubt about how employees are supposed to act and represent the company. That consistency makes it less likely the culture will devolve to the point of toxicity.

4. Nobody Is Asking Questions

The aforementioned Quantum Workplace survey found that one of cultural engagement factors that dropped the most significantly in 2015 was manager effectiveness. That means the day-to-day support employees need to succeed is declining. The biggest sign that this is occurring in an organization: a lack of questions.

When communication between employees and their managers breaks down, it means one of several things, and none of them are good. Perhaps employees feel uncomfortable approaching their managers or voicing their concerns. Or they might think their supervisors aren’t equipped to answer their questions. Or that asking questions will be seen as a sign of weakness in the culture. No matter what the reason, closed-mouth employees are blind employees trying to make it through without any guidance.

Make sure that managers are not only trained and capable of addressing employees’ questions, but also that they actively encourage them. Having open-door management policies shows employees that they aren’t alone. It gives them confidence that they are part of a supportive culture.

Fixing a toxic organizational culture is difficult. But not addressing the issue can lead to a slew of greater problems. Avoid the effects of a negative culture as soon as possible by being able to recognize the early warning signs that things are beginning to go downhill.

What are some other signs that an organizational culture is taking a turn for the worst? Share in the comments below!