With more and more reports surfacing about toxic workplace cultures, there is more at stake than employee retention. Companies need to consider their reputations and take action to nip toxic behaviour in the bud, advises Jonathan Maude.
Never has the subject of toxic workplace culture come under the spotlight as it has in recent months. It must be time for business to take giant, and perhaps previously unthought of, steps to ensure the business culture stands scrutiny in practice, not just through lip service.
The ongoing tsunami of examples of toxic workplace cultures, from various police forces, the army, the BBC, financial institutions as well as private sector companies, suggests the message is not getting through.
The same also seems to be the case in the sporting world, where we see cricket being pulled apart at the seams over the Azeem Rafiq revelations.
As we know, the main avenue of complaints in this area is down the employment tribunal route where damages in connection with discrimination claims are uncapped and as such can lead to considerable financial awards being made, in particular where the tribunal may consider the employer to have been at extreme fault.
Workplace culture
Implementing effective whistleblowing procedures
However, as if this is were not enough, employers also bear the significant risk of a tarnished reputation in addition to other, more tangential, ramifications.
It can take years to build a reputation, seconds to destroy it – perhaps for good?
Cultures of fear
The toxicity does not always need to be of unfair treatment or discrimination. The recent example of Brewdog, the “out there” brewer, bears testament to that.
There was a well-documented “culture of fear” complained of by employees who banded together to make their views known.
This resulted in statements being made by the company promising to deal with things better in the future. However, the company subsequently delayed its float on the stock exchange.
At the time it was denied this was, in any way, due to the employee revolt, and we may well never know, but the fact remains business often do not consider the very far-reaching effects an adverse culture may have.
In most corporate transactions any potential investor or purchaser will be well advised to undertake some form of diligence on the asset they are buying.
As a part of these enquires, questions around recent tribunal claims, grievances and the like should be asked.
In the current climate, questions in this area may become more far reaching and companies need to have safeguards in place to ensure the value of the business itself is not affected by workplace culture issues.
It seems potential social media exposure and HR policies just aren’t cutting through, whether through lack of awareness about what actually takes places below the directors’ floor, a deaf ear to what some consider to be “woke” concerns, inertia and passivity, or because management has simply become inured to toxic cultures.
It seems the time has come to take a far more proactive approach to tackling the issue.
How to respond
There are a number of internal steps businesses should take in this respect. These may include drawing up codes of conduct which set out a business’s core values and set standards on the type of behaviour it expects within its workplace and the implications for those who breach the code.
In most corporate transactions any potential investor or purchaser will be well advised to undertake some form of diligence on the asset they are buying.
Equally, businesses should not shy away from being open to criticism and acknowledge there will always be ways to improve and build a better business.
Carrying out staff surveys (or soliciting informal feedback) can help a business understand whether there are issues within pockets of the business or if they are more widespread.
Also, front and centre at the moment, is the emphasis on whistleblowing. The whistleblowing landscape in the UK is developing fast, and many employers are looking for ways to drive more effective reporting, and to signpost this effectively internally.
A well drafted procedure, accompanied by regular trainings to managers, will help enable employers to investigate and deal properly and sensitively with allegations of wrongdoing.
Audit your culture
However, if a business really wants to be seen to be trying to eradicate unwelcome behaviours, there must also be the case for them to take external steps or for companies to submit to external workplace audits, in the same way they are subject to financial audits.
This will ensure a degree of rigour is introduced to take the toxicity temperature of organisations and weed-out woeful behaviour.
Interestingly, it has recently been reported that the army is to introduce culture audits to address toxic behaviour, so this appears to be a way forward.
A survey by Culture Shift found that two in five employees have experienced problematic behaviour, such as bullying, harassment or discrimination at work, with 42% confirming that this type of toxic culture has affected their mental health.
The economic impact of presiding over poor mental health has been reported to cost UK businesses up to £45 billion a year – this includes absenteeism and presenteeism issues which arise through an unchecked toxic culture.
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How can employers allow these behaviours to go unchecked? It is costing the economy, employees and ultimately the businesses themselves.
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