Is Toxic Leadership the silent killer of Business Success?
Toxic leadership is one of the most damaging yet under-discussed issues in business today. Too many organisations tolerate or even reward leaders who systematically harm individuals, teams and overall company performance. The impact is profound, not just on the people directly affected but on the long-term success of the business. Yet, despite the clear evidence, many companies fail to address the problem. Middle and senior leaders have a critical role to play in recognising and challenging toxic leadership before it destroys productivity, morale and trust.
A toxic leader is not simply a tough boss with high standards. They are individuals who create a harmful environment through bullying, intimidation, manipulation, misinformation and control or power issues. They tend to take credit for success but shift blame when things go wrong. They micromanage, erode confidence and create a culture of fear and confusion rather than empowerment and clarity. Instead of developing talent, they suppress and sabotage others to protect their own position. Toxic leadership doesn’t just impact those who work directly with these individuals, it seeps into the entire organisational culture, turning the workplace into a battleground of self-preservation and protectionism rather than collaboration and innovation.
There are many reasons why toxic leaders emerge. Often, businesses promote individuals based on technical ability, past successes or long tenure rather than leadership capability. Someone might be a top performer in sales, finance or operations, but that does not mean they have the emotional intelligence or interpersonal skills to lead effectively. Without proper leadership development, these individuals default to behaviours that may have worked for them personally but can be destructive when applied to managing others. Another key factor is a lack of accountability. When senior leaders fail to address toxic behaviours, they send a clear message to the organisation that short term results matter more than how people are treated. This not only enables poor leadership but can actively encourage it. In high pressure environments where performance is everything, leaders may resort to toxic behaviours as a means of maintaining control, particularly if they feel insecure in their role. A culture that tolerates or ignores toxicity is often one that rewards short term success over long-term sustainability.
The cost of toxic leadership can be truly enormous. Research shows that poor management and toxic workplace cultures result in significant losses in productivity, engagement and retention. A Gallup study estimated that disengagement costs businesses billions in lost productivity every year. Employees who work for toxic leaders are far more likely to leave, with studies showing they are nearly 50% more likely to quit than those working in healthy environments. The impact on mental health is severe, with stress, burnout, and anxiety becoming the norm in toxic workplaces. Businesses also suffer in terms of innovation and competitiveness. When employees operate in a fear-driven environment, they avoid risk, stop contributing new ideas and simply do the bare minimum to survive, keep their jobs and keep off the radar. The result is almost certainly stagnation, an inability to adapt and thus be less relevant, and ultimately, failure in the face of more dynamic competitors.
British businesses should be deeply concerned about this issue. The UK already struggles with low productivity, poor engagement and talent retention challenges. Employee engagement levels in Britain are among the lowest in Europe, and the rise of ‘quiet quitting’—where employees disengage but remain in their jobs—suggests that too many workplaces are failing to inspire their people. Businesses frequently complain about talent shortages, yet many are actively driving their best employees away by tolerating toxic leadership. The issue is further compounded by a corporate culture that often avoids difficult conversations. Too many British companies prioritise financial performance over people, allowing damaging leaders to remain in place as long as they ‘get results.’ In some cases, toxic leaders are thought to be too difficult to train, coach or exit the business, and so they remain, causing far more damage and losses. In reality, the short-term wins that may come from ‘results’ come at a significant long-term cost, yet few organisations take the necessary steps to confront and remove toxic leadership.
The responsibility for fixing this lies with those in positions of power and influence. CEOs, boards, and senior leaders set the tone for the entire organisation. If they ignore toxic behaviours or fail to challenge poor leadership, they are complicit in the damage being done. HR departments must also step up. Too often, HR is seen as protecting toxic leaders rather than holding them accountable. Leadership teams must recognise that their culture is a direct result of the behaviours they allow to continue. Middle leaders also have a crucial role. Many experience toxic leadership from above but feel powerless to challenge it. However, by pushing for greater accountability, advocating for leadership development, and leading by example, they can begin to shift the culture from within.
Leading business change is not just necessary, it is urgent. British businesses are already falling behind in terms of productivity, innovation and employee engagement. Allowing toxic leadership to continue unchecked will only accelerate that decline. The organisations that thrive in the future will be those that recognise leadership is about enabling and empowering, not controlling and undermining. Removing toxic leaders and developing strong, emotionally intelligent, people-focused leadership is not a ‘nice to have’, it is, in my view, a fundamental requirement for business success.
The real question is whether businesses have the courage to (really) act. It is easy to talk about leadership development, employee engagement and cultural transformation. The harder part is making the tough decisions, holding toxic leaders accountable, confronting damaging behaviours and prioritising long-term success over short-term results. Those who are serious about fixing this problem need to stop making excuses and start making changes. The choice is clear—either address toxic leadership now or pay the price later when the best people leave, innovation dries up and performance collapses.
For middle and senior leaders, the challenge is personal. What kind of leader do you want to be?
What kind of workplace do you want to create?
The legacy of leadership is not measured by financial results alone but by the impact left on people and culture. Those who tolerate or ignore toxicity are just as responsible as those who create it. The best leaders deliver results, they build teams, inspire trust and create environments where people thrive. That is the standard all leaders should hold themselves to.
Blog by PJ Stevens
Would you like to chat about your leadership, any projects that are a bit stuck, or maybe your culture isn't what it was?
Call me or email and we can book in a time together. pj@pjstevens.co.uk
-------------------------
For reference, information from:
Gallup – Research on employee engagement, the impact of poor management, and the financial cost of disengagement.
MIT Sloan Management Review – Studies on toxic leadership and its effects on employee turnover and culture.
CIPD (Chartered Institute of Personnel and Development) – Reports on workplace well-being, burnout, and the impact of leadership on mental health.
Harvard Business Review – Insights on leadership behaviours, toxic culture, and organisational performance.
UK Government and Productivity Reports – Data on Britain’s productivity challenges and the role of workplace culture.
Commentaires