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10 Warning Signs of a Toxic Workplace and How to Address Them

BY
Andrew Langat
May 13, 2025
Stressed employee at desk, showing signs of a toxic workplace environment.
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A toxic workplace is like a garden choked by weeds. What could be a vibrant, flourishing space becomes stifling, draining the life of those who tend it. The signs are often subtle: a seed of negativity here, a thorn of disrespect there, until the whole environment feels suffocating. Left unchecked, these issues can poison morale, stunt growth, and drive away talent.

In this article, we’ll unearth ten warning signs of a toxic workplace, from creeping cliques to relentless micromanagement, and share practical ways to clear the weeds, nurture trust, and cultivate a culture where everyone can thrive.

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What’s a Toxic Work Environment?

A toxic work environment is a workplace characterized by persistent negativity, harmful behaviors, or dysfunctional dynamics, such as bullying, micromanagement, or lack of respect, that create a stifling, unhealthy atmosphere.

It leads to chronic stress, anxiety, and depression, undermining mental and physical health, increasing turnover, and reducing productivity. Recognizing signs like unfair compensation or cliques is essential to address issues, build a supportive, thriving workplace, and prevent low morale.

According to the American Psychological Association’s Work in America Survey (2023), 19% of workers reported that their workplace is very or somewhat toxic, and 22% said they experienced harm to their mental health at work. These numbers are not just statistics—they’re a call to action, especially for mistreated people. Environments marked by unfair compensation, exclusionary cliques, or a lack of recognition are more than unpleasant—they’re damaging.

Recognizing the warning signs of a toxic workplace is crucial for prioritizing mental health and well-being. With two in five workers (41%) saying their workplace harms their mental health, fostering a culture of respect, fairness, open communication, and work-life balance isn’t just good practice—it’s essential for a thriving workforce.

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Characteristics of a Toxic Workplace

A toxic workplace is a breeding ground for dysfunction, where harmful behaviors and poor practices drain employee morale and well-being. Below are key characteristics that define such environments, their impacts, and additional insights to help identify and address them.

Characteristics of Toxic workplace

1. Poor Communication

What it looks like: Information is withheld, vague, or inconsistent. Feedback is either absent or delivered harshly and non-constructively. Employees feel left in the dark or afraid to speak up.

Misunderstandings, mistrust, and disengagement flourish, leading to constant stress, inefficiencies, and a fractured team dynamic. A survey revealed that 38% of employees report experiencing toxic communications at work, with people of color reporting even higher rates (43%) compared to white colleagues (26%)

Example: A manager who dismisses questions or only communicates through criticism leaves employees confused and undervalued.

2. Lack of Healthy Boundaries

What it looks like: Personal and professional lines blur, with leaders or colleagues overstepping through intrusive demands or inappropriate behavior. Employees may feel pressured to respond to work requests at all hours.

Why it’s bad: This erodes trust, increases stress, and makes employees feel unsafe or disrespected. A survey by Sci-tech revealed that high stress levels cause 76% of employees to experience burnout at least sometimes, with 28% feeling burned out “very often” or “always”

Example: A boss texting employees late at night about non-urgent tasks, ignoring their need for personal time.

3. Unrealistic Expectations

What it looks like: Employees are burdened with impossible deadlines, excessive workloads, or goals that defy reason, often without adequate resources or support.

Why it’s bad: Burnout, anxiety, and a sense of failure set in, lowering morale and productivity.

Example: Assigning a single employee a project requiring a team effort, with no deadline flexibility.

Related: Managing Expectations At Work: Its Importance & How To Do It

4. Micromanagement

What it looks like: Managers hover over every detail, undermining autonomy and second-guessing decisions, leaving no room for creativity or trust.

Why it's bad: Employees feel infantilized, lose confidence, and disengage, stifling innovation and initiative.

Example: A supervisor requiring constant updates on minor tasks, criticizing small choices without offering guidance.

Related: How to Tell Your Boss To Stop Micromanaging

5. Unfair Compensation

What it looks like: Pay is below industry standards, raises or bonuses are nonexistent or unequally distributed, impacting employees' physical health. Employees are expected to work overtime without reward.

Why it’s bad: Feelings of resentment and being undervalued grow, leading to high turnover and low job satisfaction.

Example: Two employees with similar roles and experience receive vastly different salaries without transparent justification.

6. Disregard for Work-Life Balance

What it looks like: Employees are expected to prioritize work over personal life, with no flexibility for family needs, health, or rest. Overwork is normalized or glorified.

Why it’s bad: Chronic stress and burnout harm physical and mental health, reducing overall quality of life.

Example: A company culture that praises employees for working weekends while ignoring those who set boundaries.

Related: What are the Qualities of a Good Workplace?

7. Limited Growth Opportunities

What it looks like: There’s no clear path for career advancement or a detailed job description, training is scarce, or promotions are based on favoritism rather than merit.

Why it’s bad: Employees feel stagnant and unmotivated, leading to disengagement and a lack of organizational loyalty.

Example: Talented employees are overlooked for promotions because they don’t socialize with the “right” people.

8. Neglect of Employee Well-Being

What it looks like: Mental health resources, reasonable workloads, or basic support systems are absent. Employees’ struggles are ignored or stigmatized.

Why it’s bad: Anxiety, depression, and low self-worth become common, as employees feel like their needs don’t matter.

Example: A workplace that offers no mental health support and expects employees to “tough it out” during high-stress periods.

9. Cliquish or Exclusionary Culture

What it looks like: Factions or “in-groups” dominate, leaving others marginalized. Nepotism or favoritism creates an unfair playing field.

Why it’s bad: Employees feel isolated or undervalued, which stifles collaboration and breeds resentment.

Example: A team where only certain members are invited to key meetings or social events, creating an “us vs. them” dynamic.

10. Tolerance of Toxic Behaviors

What it looks like: Bullying, gossip, or passive-aggressive behavior goes unchecked, which is a deal breaker for a healthy workplace. Leadership either ignores or enables these issues.

Why it’s bad: A culture of fear and mistrust takes root, making it hard for employees to feel safe or respected.

Example: A coworker’s constant belittling comments are dismissed as “just their personality,” leaving others to endure the hostility.

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Impact on Employee Health

1. Chronic Stress: Anxiety, Depression, and Burnout

Toxic workplaces chronically activate the body’s stress response, flooding the brain with “fight-or-flight” hormones like cortisol and adrenaline. Over time, this dysregulates mood and cognition, contributing to anxiety disorders, clinical depression, and burnout.

For example, one CDC survey found that workplace harassment raised the odds of anxiety by a factor of 5% and depression by 3.4%. Left unchecked, these mental health conditions impair concentration, motivation, and overall well-being.

2. Metabolic Disorders (Obesity and Diabetes)

The same stress pathways affect metabolism. High cortisol from chronic stress promotes fat storage and excessive eating, often leading to weight gain and obesity. Mayo Clinic explicitly lists “weight gain” as a consequence of long-term stress.

WebMD reports that chronic workplace stress is associated with obesity and elevated blood sugar. Over time, this raises the risk of type 2 diabetes and metabolic syndrome. (In practice, workers under severe stress often report unhealthy coping behaviors like stress-eating that compound these effects.)

3. Sleep Disorders and Fatigue

Toxic stress also wreaks havoc on sleep. High cortisol and constant worry make it hard to fall asleep or stay asleep. Mayo Clinic identifies “sleep problems” as a typical result of chronic Insomnia and non-restorative sleep, which are frequently reported by employees in toxic settings.

Poor sleep impairs memory, mood, and immune function, causing daytime fatigue. Workers who cannot detach mentally from stress “do not suffer as much sleep disruption,” underscoring how hyperarousal from workplace toxicity directly causes insomnia.

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Effects on Mental Wellbeing

Toxic work environments do more than create discomfort—they can cause lasting damage to employees’ mental health. Here are five clear ways toxic workplaces harm mental well-being:

  • Chronic Stress and Anxiety
    Constant pressure, unrealistic deadlines, and fear-based leadership activate a long-term stress response. This can lead to anxiety disorders, panic attacks, and difficulty concentrating.
  • Depression and Emotional Exhaustion
    Environments where employees feel ignored, dismissed, or disrespected can trigger feelings of worthlessness, sadness, and hopelessness—typical signs of clinical depression and burnout.
  • Loss of Self-Worth and Confidence
    When contributions are overlooked or unfair criticism is the norm, employees begin to doubt their skills and value, leading to impostor syndrome and low self-esteem.
  • Workplace Isolation and Loneliness
    Poor communication, favoritism, and gossip can fracture team dynamics and make employees feel isolated, even in group settings.
  • Burnout and Mental Fatigue
    The constant need to “watch your back” in toxic environments leads to emotional fatigue, disengagement, and a lack of motivation or creativity.

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Creating a Positive Work Environment

Creating a positive work environment isn’t just good for morale—it’s essential for long-term success. Employees who feel respected, supported, and valued are more engaged, productive, and loyal. But building a healthy workplace takes intention. It goes beyond perks and surface-level culture; it’s about how people communicate, grow, and treat one another day-to-day.

Here are 17 practical ways to build a work environment where people—and performance—thrive:

  • Prioritize Mental Health with Action: Go beyond lip service for well-being. Offer dedicated mental health days, promote regular breaks, and provide access to professional counseling or wellness apps. Normalize conversations about stress and model healthy boundaries from leadership to empower employees to show up fully.
  • Foster Transparent, Two-Way Communication: Encourage open dialogue where leadership communicates clearly and listens actively. Create channels for employees to share ideas and concerns, ensuring feedback flows freely in all directions to build trust and alignment.
  • Fuel Professional Growth: Invest in employees’ ambitions with tailored development opportunities—think workshops, mentorship programs, or stretch projects. A workplace that supports growth keeps talent motivated and prevents stagnation.
  • Respect Work-Life Boundaries: Honor personal time by enforcing clear policies around PTO, discouraging after-hours emails, and rejecting the "always-on" culture. A workplace that values balance reduces burnout and boosts long-term performance.
  • Recognize Effort Consistently: Authentic, timely recognition amplifies morale, whether a shoutout in a team meeting or a personal note. Make it specific, tied to impact, and inclusive of all roles to reinforce a culture of appreciation.
  • Celebrate All Milestones:  Mark achievements, from major project completions to small wins like navigating a tough week. Celebrations, like team lunches or public kudos, sustain momentum and remind everyone that their work matters.
  • Be Open About Decisions: Decision transparency builds trust, even during tough times. Share the reasoning behind changes, strategies, or challenges to align teams and curb uncertainty or mistrust.
  • Promote Cross-Team Synergy: Dismantle silos by encouraging collaboration across departments. Shared goals, joint projects, or cross-functional workshops foster camaraderie and a unified culture while sparking innovation.
  • Confront Toxic Behavior Swiftly: Address negativity, such as bullying, gossip, or undermining actions, promptly and decisively—clear policies and consistent enforcement signal that toxic behavior has no place, protecting team morale.
  • Empower Autonomy: Trust employees with ownership over their work. Allow them to make decisions, experiment, and learn from failures without excessive oversight, fostering confidence and accountability.
  • Check-In with Empathy: Regular one-on-ones should go beyond task updates and include genuine questions about well-being. Showing care for employees as individuals strengthens connection and loyalty.
  • Develop Emotionally Intelligent Leaders: Equip managers with empathy, conflict resolution, and inclusive leadership training. Strong leaders set the tone for culture, ensuring teams feel supported and valued.
  • Create Safe Feedback Channels: Enable all voices to be heard through anonymous surveys, suggestion platforms, or facilitated discussions. Safe feedback mechanisms ensure inclusivity and uncover insights for improvement.
  • Embrace Flexible Work Models: Offer flexible hours, remote work, or compressed schedules to accommodate diverse needs. Flexibility enhances satisfaction and productivity while maintaining accountability.
  • Connect Work to Purpose: Help employees see how their contributions matter. Link daily tasks to the organization’s mission or impact on customers and society, inspiring motivation and a sense of belonging.
  • Encourage Constructive Feedback: Promote a culture where feedback is specific, actionable, and delivered with respect. Train teams to give and receive constructive feedback regularly, fostering growth and collaboration without fear of judgment.
  • Invest in Ongoing Professional Development: Provide continuous learning opportunities, such as certifications, skill-building courses, or leadership tracks. Supporting professional development shows a commitment to employees’ long-term success and keeps skills relevant.
Inspiring, isn’t it ? Want to learn more about connecting self-awareness to professional development? Get in touch today.
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Let Highrise Teach You How to Create a Better Workplace

Creating a better workplace doesn’t happen overnight, but it starts with small, intentional changes that put people first. From open communication to fair policies and meaningful recognition, these strategies can transform how your team works and how they feel about work.

At Highrise, we believe great cultures are built, not born. Whether you're leading a growing startup or managing a large team, we're here to help you shape a workplace where people feel heard, supported, and inspired to do their best work.

Let Highrise show you how to build a better workplace—one habit, one conversation, one day at a time.

Give us a call today to get started.

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AUTHOR
Andrew Langat
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Andrew Langat is an experienced content specialist in Leadership, Productivity, Education, Fintech, and Research. He is an avid reader and loves swimming as a hobby. He believes that quality content should be actionable and helpful.