How to Address Problematic Employees and the Impact on Workplace Culture

First let me state for the record, that I did not come up with the term “Staff Infection.” My amazing client mentioned it during our session in describing the infectious energy and deterioration of standards, morale and motivation from one or two employees.

What a perfect way to describe the impacts of mis-fit employees and cultures! This infection does not clear up on its own and if ignored it will only flare up and show more damaging symptoms.

Before we dive into the costs, impacts and what you can do about it, let us first be clear that employees are not “toxic”. That label is damaging and does not provide a way forward to be anything but what they’ve been assigned. Instead, we like to use problematic, misaligned, or mis-fit to describe a situation where expectations, roles, and/deliver is not in flow.

In all companies employees contribute to workplace culture and overall productivity. Their effect, whether positive or negative, ripples like in a pond and can extend far beyond their immediate sphere,impacting team dynamics and employee morale.

The 5:1 Ratio

Did you know that for every negative experience a person encounters, they need five positive experiences to balance out. In areas of high conflict, that ratio increases to 12. So imagine the amount of negative ripples and how they can in turn compound into additional negative experiences.

While it's easy to overlook or understate their impact, the costs of not addressing these issues can be substantial. Let's dive into the effects of problematic employees, the costs of inaction, and the steps managers can take to mitigate these issues.

Costs and Statistics:

According to a study by the Society for Human Resource Management (SHRM), the cost of a bad hire can go up to five times the bad hire's annual salary. So if an employee has a $100,000 salary, you now have a $500,000 problem. This cost arises from various factors such as decreased productivity, overworking of other employees, and potentially, recruitment and training costs to replace those who leave due to the toxic environment.

Moreover, a survey conducted by Cornerstone OnDemand found that good employees are 54% more likely to quit when they work with a toxic employee. This indicates that the presence of problematic employees not only decreases productivity but can also lead to an exodus of valuable employees. And the cost to replace those employees can range from 50-250% of their salary!

Now that we’re aware of how expensive and damaging this issue is, here’s what you can do about it.

Five Steps Managers Should Take:

Identify it Early:
Spotting signs of problematic behavior early on is crucial. Managers should be observant of their team dynamics and be vigilant of any potential disruptors. This includes consistently late submissions, disregard for company rules, or patterns of negative interactions. We believe in micro-conversations that provide immediate insight and information on progress and competence.
Clear Communication:
Open dialogue about the issue at hand is essential. Managers should have a private, candid conversation with the employee, providing clear examples of the concerning behavior and its impact on the team. Remember: Ambiguity is a clear sign of avoidance. If something doesn’t feel clear, follow up with curious questions, ask for specific examples, and have the employee create clear next steps.
Set Expectations and Follow Up:
Once the issue has been discussed, managers should ask the employee to define the expected changes in behavior and set up a cadence to follow up. This is against status quo leadership advice as it requires the employee to take ownership of their behavior change rather than the manager following up and babysitting.
Involve HR and Document Everything:
If behavior doesn't improve, it's essential to involve Human Resources for their expertise and to ensure procedural correctness. Documenting all communications and actions related to the problematic behavior is also vital in case of potential disputes or legal implications.
Consider Termination:
If there is not a clear way forward with the employee and your organization,, termination might be the best option for the overall health of the team. This decision should be made in consultation with HR and should always be the last resort.

Problematic employees pose a significant challenge to workplace culture and productivity. The costs of overlooking their impact can be high, affecting not just team morale but also the bottom line. However, through early identification, clear communication, setting expectations, involving HR, and, if necessary, termination, managers can mitigate these issues and work towards maintaining a healthy, productive workplace environment. Remember, the goal is to foster a culture where all employees can thrive.

At Spitfire Coach we work with all levels of organizations to provide a way forward into creating a psychologically safe environment that inspires and supports positive disruption and innovation.

If this topic resonated with you, we’d love to help. Schedule a time here and we’ll walk you through our process.