What to do when the leader is a hazard

Long hours, unrealistic expectations, favouritism, poor communication, blame culture.    

Most of us have known a leader who delivers results but creates a toxic and unhealthy work environment, creating a situation where people dread coming to work.  

There are many factors that can lead to an unhealthy work environment, but one of the most challenging situations arises when the leader themselves is the cause.  

While effective leadership can inspire, motivate, and drive success, a toxic leader can have the opposite effect, negatively impacting employees’ mental health and wellbeing.    

When leaders engage in bullying, harassment, or discrimination, it can lead to a climate of fear, intimidation, and mistrust. Employees may feel unsafe, undervalued, and isolated, leading to decreased job satisfaction, increased stress, and even potentially exacerbate a mental health condition.  

Recognising a toxic leader  

The first step in addressing this issue is to recognise that a problem exists. This can be difficult, as leaders often hold significant power and influence. However, there are several key signs that a leader might be creating a toxic environment: 

• Bullying and harassment: Verbal abuse, isolation, discrimination. 

• Micromanagement and control: Excessive monitoring, blame culture, lack of recognition. 

• Poor communication: Lack of clarity, frequent changes, favouritism. 

• Unrealistic expectations: Excessive workload, unrealistic deadlines, lack of support. 

• Hostile environment: Negative atmosphere, lack of respect, stifling creativity. 

• Lack of trust and support: Breaching trust, lack of support, culture of fear. 

Furthermore, toxic leaders often engage in micromanagement, which can stifle creativity, limit autonomy, and erode culture. When employees feel constantly monitored and controlled, they may become demotivated, disengaged, and less likely to take initiative. 

In addition to its negative impact on individual employees, toxic leadership can also have detrimental effects on organisations as a whole. High turnover rates, decreased productivity, diminished organisational trust and a damaged reputation are just some of the potential outcomes.  Toxic work environments can also contribute to a decline in mental health, increased healthcare costs, and a loss of productivity on a national level. 

Untreated mental health issues cost Australian businesses an estimated $10.9 billion annually in lost productivity alone. That’s $4.7 billion in absenteeism, $6.1 billion in presenteeism and $146 million in compensation claims, according to a PwC and Beyond Blue report on mental health in the workplace. 

Leaders can’t be solely to blame for creating toxic environments. In the corporate world, it’s often assumed if you are good at your job, you’ll be good at leading a team too. Individuals are given more responsibility and a team to lead with little to no training on how to do it well. 

To create a healthy and supportive work environment, it’s essential for organisations to build strong leadership capability and hold leaders accountable for their actions. This includes providing training and development opportunities for leaders to help them develop the skills and competencies needed to create an inclusive and mentally healthy workplace. 

There are now legal implications for organisations that fail to mitigate psychosocial hazards.  As such, organisations should have clear policies and procedures to address bullying, harassment, and other psychosocial hazards. These policies should be enforced consistently and transparently to ensure employees feel safe and protected. 

Of course, addressing toxic leaders shouldn’t be up to individuals to fix it. On an organisational level, it’s essential to address the underlying causes of harmful behaviour, but employees also have a role to play. By speaking up about toxic behaviour, seeking support, and advocating for a healthier workplace, employees can help to address the issue and create a more positive culture. 

We know that good leadership is very protective and can shape the experiences and outcomes of their people. So, it’s essential for organisations to prioritise strong leadership capability, ensure they are accountable, and create a culture that values wellbeing. By investing in these areas, organisations can create a positive, productive work environment that benefits everyone. 

Are you investing in your leaders?

Support for your people

We offer support for your leaders across all stages of their journey – whether it’s stepping into their first leadership role, progressing through subsequent leadership roles, or transitioning into the complexities of leading at an executive level. Our coaching is tailored to help leaders navigate the complexities of leadership, ensuring your people maximise their potential and succeed in their new role.

We collaborate closely with your organisation to align with its needs, goals and outcomes, and provide your leaders with the frameworks, tools, and strategies they need to grow and succeed, while navigating the demands that come with life and work. 

To find out more about how Transitioning Well can help your organisation, see our Learning Catalogue.