Understanding the Toxic Turnover Cycle

The concept of a toxic workplace culture was first introduced in 1975 by psychologist Herbert Freudenberger. He described environments plagued by abusive relationships, bullying and harassment from senior staff, narcissistic leadership, aggressive behaviours, and widespread cynicism.

Breaking free from toxic workplace culture to reduce high employee turnover and encourage a healthier environment.

Freudenberger highlighted the risks such cultures pose to organisations, including emotional exhaustion, low motivation, and diminished productivity.

High employee turnover is a significant contributor to this toxic culture. Recent research indicates that toxic culture is a primary reason employees choose to leave their jobs, creating a vicious turnover cycle in many organisations.

According to a survey by Wiley Edge formerly mthree , 63% of businesses reported negative impacts on company culture directly attributed to high staff turnover.

The report further illustrates how poor retention rates can spiral into a vicious cycle: as culture deteriorates, more employees leave, exacerbating recruitment and onboarding costs. Survey responses from over 500 UK business leaders and 1,000 full-time employees aged 21-28 revealed:

• 23% received complaints from remaining team members about cultural changes.
• 22% encountered issues among team members due to a developing toxic culture.
• 21% observed a decline in employee engagement.
• 22% noted long-standing employees leaving because of cultural shifts.

Lack of opportunities for advancement, insufficient management support, and toxic company culture were identified as key reasons for leaving jobs, with 40% of respondents citing these factors.

Additional Findings:

• 72% of businesses needed to provide extra training for junior employees.
• 78% faced challenges in recruiting replacement staff.
• 16% reported that over half of graduates left within the first 24 months.
• 10% did not promote their company culture to potential employees.
• 54% had senior executives conduct graduate interviews.
• 50% of younger workers prioritized company culture when considering new job offers.
• 52% of businesses conducted multiple interviews for junior roles.

Insights from Younger Employees:

• 70% regretted joining an organisation after discovering the true company culture.
• 29% left their jobs within the first year due to cultural dissatisfaction.
• 26% departed within six months for similar reasons.
• 26% remained unhappy with the culture but chose to stay.

Final Thoughts:

Identifying the primary causes of employee turnover can help organisations reduce turnover costs and retain talent. Understanding why employees leave makes it easier to address gaps and improve retention. For further information on identifying and improving organisational culture, please contact us.