Toxic Employees in the Workplace: Hidden Costs and How to Spot Them
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This document outlines the impact of toxic employees on organizational performance, highlighting their detrimental effects on productivity, turnover, and workplace culture. It provides strategies for identifying, addressing, and preventing toxic behaviors, emphasizing the importance of effective management and recruitment practices to foster a healthy work environment. The document concludes with actionable steps for addressing toxic behavior and improving employee relations.
Toxic Employees in the Workplace: Hidden Costs and How to Spot Them
- 1. Brought to you by HOW TO AVOID, DETECT, & CORRECT TOXIC EMPLOYEES
- 2. Meet your presenter A San Francisco native, Mike first came to Australia in 1986, returning with his Australian family to permanently reside in Sydney in 2005. Over the course of the past 25 years, ‘shared-technology’ solutions have underscored his career. In the late 90’s, Mike was introduced to the Talent sector, quickly developing a passion for applying Saas solutions to develop, empower and align people to realise their potential and the objectives of the company in which they work. Mike joined Cornerstone OnDemand in 2014 to lead the company's efforts in the Australia and New Zealand region and is part of an amazing team who are passionate about using technology to engage people and drive business performance. Mike Erlin Managing Director, Australia & New Zealand
- 4. What Does Toxic Mean? Definition: Acting as or having the effect of a poison; poisonous:
- 5. We are not talking about specific PEOPLE, but rather the BEHAVIOURS they are exhibiting.
- 6. Evidence suggests that toxic employees are more focused on the quantity of the work produced than the quality.
- 7. Toxic behaviour is contagious! The presence of a single toxic employee can increase the turnover of good team members up to 54%. Higher attrition rate due to toxic employees can cost up to $8,800 per year – and per toxic employee.
- 8. So first let’s try to understand the WHY?
- 9. Reasons for TOXIC Behaviour Vary: Does not understand the company’s vision Is disconnected from the company’s mission Is not in the right role Is not being managed properly Suffers from poor emotional or social skills Is experiencing problems at home Feels underappreciated
- 10. But one thing is very clear: SOMETHING Must Change
- 11. What DAMAGE can be done? Toxic employees have a remarkably strong impact on voluntary attrition (more so than on day-to-day workplace performance) They ‘destroy the social fabric of the organisation by creating friction, drama, tension and hostility among other employees’
- 12. Can We Quantify the Effects of Toxic Employees?
- 13. Wharton 2013, Careerbuilder 2012 Lower Productivity 30% drop in team performance due to one bad apple 69% of employers report being adversely affected by a bad hire 41% estimated the cost to be more than $25,000 24% said a bad hire cost more than $50,000
- 14. Increased Turnover 54% increase in the likelihood of losing a good employee due to the presence of just ONE toxic employee Decreased Revenue $$ loss of revenue due to client dissatisfaction after exposure to a toxic employee Cornerstone/Kellogg 2014
- 15. It is CRITICAL that employers focus their attention on avoiding toxic employees in the first place. Alternatively, the responsibility lies with the employer to IDENTIFY and ERADICATE toxic behaviour as quickly as possible.
- 16. Successful business depends on successful people. Therefore, it only makes sense to put effort into finding those who’ll help you succeed.
- 17. How to Avoid Hiring Toxic Employees
- 18. It is harder than ever to predict a good hire: Recruiters spend an average of five to seven seconds looking at resumes – focusing mainly on previous experience and salary requirements Job seekers have learned to game the online application system by using key ‘buzz’ words Candid reference checks are rare
- 19. Assessments to identify toxicity: Cognitive Ability Tests o Mentally can’t perform tasks Personality Tests o Socially aren’t suited to the tasks or team Motivation Assessments o Motivationally challenged
- 20. • My SUPERVISOR will reward successful performance • I have a relationship with my SUPERVISOR which would be difficult to break • My SUPERVISOR treats me with fairness and respect • My SUPERVISOR is committed to excellent customer service • I am inspired by my SUPERVISOR to do my best Non-Toxic Leadership: • I am inspired by my ORGANISATION to do my best • I will be fairly rewarded for achieving my objectives • I feel safe to share my ideas with my ORGANISATION • I speak highly of my TEAM when talking to others • I enjoy working with my TEAM Non-Toxic Employees: Wonderlic (2015) Positive perceptions decrease toxic behaviors:
- 21. What If You Already Have Toxic Employees?
- 22. Why do most managers avoid dealing with Toxic behaviour? • Too busy with more urgent matters • They are uncomfortable “Confronting” the behaviour directly • Lack talent management skills to deal with the behaviour effectively
- 23. Identify who is the toxic employee: • Unreliable • Unlikely to help others • Change in behaviour • Vocal on their negativity • Claim to follow the rules
- 24. Toxic employees speak loud and take credit Janet Britcher’s* advice Turn down the volume on charm Listen to the words Watch the action Note some of these common behaviours: • Are they great in a group but critical one-on-one? • Do they manage up well, but throw peers under the bus? • Do they take all the credit? • Do you find yourself defending them because they are so insightful, despite repeated reports from reliable co- workers about the damage they leave in their wake? *President of Transformation Management
- 25. Do You Help Them or Weed Them Out?
- 26. How Do You Correct Toxic Behaviours?
- 27. How to address the problem – 5 steps discussion STEP 1: Opening: say something positive, but explain the issue STEP 2: Getting agreement: cite examples of toxic behavior, ask for fact-based agreements STEP 3: Alternatives: make and ask for suggestions, discuss benefits and drawbacks STEP 4: Getting a commitment to act: encourage employee to talk, agree and praise to reinforce what employee says STEP 5: Closing: consolidate, thank employee and let him/her know the follow up Edward R. Mitnick, Esq., Just Training Solutions, LLC
- 28. Understand what the employee really wants or needs: Interesting work Challenging work To feel value in what they’re doing Feeling ‘In’ on the ‘bigger picture’ Appreciation for work well done Good wages Good working conditions Job security Deserved promotions/growth opportunities Tactful disciplining Sympathetic help with personal problems
- 29. What can help here? Training/Coaching Performance Evaluations
- 30. Transforming the Toxic behaviour through coaching and training Coaching • Developing managers' skills in this area • One-on-one coaching • Regular feedback Training • Look for creative development opportunities • Learning new skills • Being challenged • Adding to self-worth • Being ‘invested in’
- 31. Transforming the Toxic behaviour through effective performance management Identify the problem Engage in an interactive dialogue with employee Listen to employee’s reasons for poor performance Constructive coaching Identify manager’s responsibilities for addressing the performance problem. Recognising efforts and work done well Collect and prepare the 3 D’s: • Data • Document • Details
- 32. Avoid toxic employees in the first place and do your best to identify and eradicate poisonous behaviour quickly.
- 33. Visit our webpage at https://www.cornerstoneondemand.com.au/ Join us at twitter @CSOD_ANZ Blog https://www.cornerstoneondemand.com.au/blog For more information, or to schedule a demo, contact: E: [email protected]
- 34. Thank You