A toxic work culture is the biggest reason why people quit, and it's 10 times even more important than pay, according to research published in the MIT Sloan Management Review. But what exactly does a toxic workplace actually look like?
Researchers analyzed 1.4 million Glassdoor reviews from nearly 600 major U.S. companies and found employees describe toxic workplaces in five main ways: non-inclusive, disrespectful, unethical, cutthroat and abusive.
"Employees can have hundreds of different criticisms about their organization that they discuss>What toxic work culture looks like
Based>Toxic workplaces are a billion-dollar problem
When people quit due to a toxic work culture, it's as much of a human cost as it is a business one.
Employees who work in toxic environments have higher levels of stress, burnout, mental health issues and other stressors that can lead to poor physical health.
The Society of Human Resources Management estimates that 1 in 5 employees have left a job at some point in their career because of a toxic culture, which cost businesses more than $44 billion per year prior to the Great Resignation.
Disengaged and job-searching employees means lower productivity, and replacing an employee can cost up to twice the employee's annual salary, according to Gallup.
With the business world focused on retention and hiring these days, researchers on the MIT analysis say organizations must set up and model a supportive, inclusive culture as the pandemic reshapes how we work.
They also recommend leaders break down how people rate company culture, like by geographic region, department, function or level of seniority, to find "microcultures" where employees don't feel psychologically safe and supported. "Even in relatively healthy organizational cultures, even a small share of people who describe the culture as toxic can drive attrition," Sull says.
