Toxic Leaders Are A Huge Liability To Your Organization!
Toxic leaders are a huge liability to their employers! News flash, right? The theme of toxic leadership has gained significant traction in recent years, with countless professionals, writers, podcast hosts, and others sharing stories about their encounters with toxic leaders and unhealthy work environments. Microaggressive, overtly aggressive, racist, sexist, ableist, homophobic, abusive leaders cause severe damage to people and culture...and to the businesses they run. Regrettably, these behaviors have become prevalent across all tiers of management. While I've experienced the effects of toxic leadership, a recent incident concerning other injured parties has prompted me to delve deeper into this problem. Recently, I was hired to investigate a leader whose severe misconduct adversely affected multiple employees, office morale, organizational culture, and overall company operations. The company and its employees had been forced into a crisis…a self-induced one.
I will not discuss that investigation here but I will talk about the negative impacts of toxic leadership in general from a risk perspective. My intention is to speak the language and grab the attention of HR professionals and company executives; to frame this issue in a way that HR and business leaders might better appreciate. While I prioritize the human and cultural implications of toxic leadership above all else, it's crucial to acknowledge that this perspective might not always resonate with HR and company leaders; and managers frequently get slaps on the wrists after committing certain offenses. Therefore, rather than highlight the obvious human impact, I think it's essential to point out the fact that toxic leaders pose substantial risk to the business. Full stop!
In light of this risk, toxic leaders should be viewed as liabilities to the company (versus assets), irrespective of their stellar revenue generation capabilities or technical performance. As leaders, they carry the responsibility of fostering trust and providing support to their direct reports in pursuit of the company's mission. At times, they need to be reminded of this crucial aspect. Unfortunately, some behaviors, including microaggressions and harassment, have been tolerated for far too long, leaving employees drained. For those unfamiliar with microaggressions in 2023, it's time to familiarize yourselves. We're beyond DEI 101 here; willful ignorance on this topic is no longer acceptable.
Numerous individuals have encountered microaggressions and even overt aggression throughout their careers due to their employers' failure to address the issue of toxic leadership, even when such leaders occupy the highest positions. These incidents, whether reported or not, expose companies to a variety of risks, some of which remain unidentified or deliberately overlooked. Operationally, they are disruptive as day-to-day activities and morale tends to decline following an incident. Employees impacted by a reported incident anxiously await clear communication about its resolution during the investigation phase. Peer pressure to ignore or downplay the incident can lead to feelings of intimidation, guilt, avoidance, and even strained professional relationships. Frequently, injured employees ultimately decide to leave the company, resulting in the loss of valuable assets. Hello, Great Resignation!
Furthermore, such incidents put the company at risk of scandal, often through leaks that spread via social media. This can result in reputational damage, impacting company profitability due to severed strategic partnerships and supplier relationships, reduced customer loyalty and shareholder trust, negative publicity, and overall lack of confidence in the business. In the most severe cases, legal actions, including lawsuits filed by affected employees and other injured parties, may be pursued. We’re seeing the effects of leaked incidents play out real time in college athletics and the very public reports of hazing have been quite telling…and sickening! But corporate incidents don’t always get public attention…they are handled quietly or not resolved at all.
It's imperative to recognize that employers and organizational leaders bear the responsibility of establishing safe work environments for their staff. Leaders who downplay the seriousness of reported incidents may fail to grasp the extent of the harm caused and should be provided with thorough education. Instances like these have led to hostile work environments for affected employees, and just one employee's suffering can cause substantial harm. It's important to note that dismissing an injured employee as "sensitive" downplays their experience, undermines the impact of the offense, and creates an unsafe work environment.
When employees report incidents to leadership, there's an ethical obligation to address them promptly and effectively. Neglecting to follow up, delaying a response, or sweeping matters under the rug—due to lack of understanding or a reluctance to involve HR—constitutes misconduct. The absence of clear policies and incident reporting procedures, or ignorance surrounding the existence of policies and procedures, further compounds the problem.
In conclusion, the detrimental effects of toxic leadership within organizations cannot be underestimated. It's imperative for companies to address this issue head-on, focusing on the well-being of their employees and the overall health of their organizational culture. Recognizing toxic leaders as a liability rather than an asset is the first step toward fostering a healthier and more productive workplace.
“Evil Boss”
Courtesy of SNL and NBC