Axcet HR Solutions Blog│Human Resources Trends, News and Insights

The Toxic Boss: Recognizing, Understanding and Taking Action

Written by Jeanette Coleman, SPHR & SHRM-SCP | Oct 31, 2023 2:00:00 PM

There's a saying that goes, "People don't leave jobs; they leave managers." This couldn't be truer than in the case of the toxic boss. As a Kansas City HR company, we've seen firsthand the damaging effects that toxic bosses, including managers and supervisors, can have on the work environment, employee morale and the overall success of a small business. 

And unfortunately, they're more common than you may think. In fact, a 2023 Fortune poll found that 64% of employees have experienced a toxic work environment–and 44% blamed the leadership team, not just their direct supervisor or manager.

Let’s take a deeper look into defining what is a toxic boss, identifying the signs of a toxic boss, recognizing the ill effects on employees and understanding corrective actions you, as a small business owner, can take to remedy the situation.

What Is a Toxic Boss?

A toxic boss refers to a supervisor or manager at your small business who creates a hostile, unhealthy or counterproductive work environment due to their behavior, decisions or management style. 

They consistently undermine the mental and emotional well-being, job satisfaction and professional growth of the employees who work under them. Instead of leading employees (and your company) to success, they often push all of the right buttons leading employees straight into a state of burnout.   

While all leaders can have an off day here and there, the behaviors displayed by toxic bosses are habitual, making the workplace unbearable for those around them, and decreasing morale and productivity at your small business.

RELATED: A 4-Step Blueprint for Resolving Employee Complaints Against a Manager >>

Signs of a Toxic Boss

Recognizing a toxic boss is the first step in addressing the issue. Their detrimental actions might be subtle at times, but they leave unmistakable patterns. Here are some prominent signs to watch out for:

  • Micromanagement

They often scrutinize every tiny detail, making employees feel like they are not trusted.

  • Public humiliation

Rather than addressing concerns privately, they call out and embarrass employees in front of others.

  • Never accepting responsibility 

They are quick to blame others and rarely, if ever, acknowledge their mistakes.

  • Lack of communication 

They might withhold vital information or give vague instructions, setting employees up for failure.

  • Playing favorites

They treat some employees better than others, leading to a divisive work environment.

  • Taking credit for others’ work

They don't acknowledge the hard work of their team and present it as their own.

Additionally, toxic bosses may be rude, discriminatory, hateful, dismissive and undermining. It’s also common for many toxic bosses to lack emotional intelligence (EI).

EI comprises the ability to:

  • Perceive accurately, appraise and express emotions;
  • Access and generate feelings when they facilitate thought;
  • Understand emotions and emotional knowledge; and
  • Regulate emotions to promote emotional and intellectual growth.

RELATED: What Is Emotional Intelligence and Why Foster It Among Your Team >> 

Things Toxic Bosses Say

A clear indication of a toxic boss often lies in their choice of words. Communication or, more aptly, miscommunication reveals their mindset. Here are some commonly heard phrases from such leaders:

  • "That's not my problem"
  • "You should be grateful you even have this job"
  • "I don’t pay you to think, just do"
  • "Why can’t you be more like [other employee]?"

The Toxic Manager’s Negative Impact on Your Employees

Toxic bosses and good bosses differ immensely. A good boss fosters feelings of trust, empowerment, safety and respect. They value open communication, teamwork and professional development. These are all feelings and values that allow your business and its employees to grow and thrive. But a 2022 Gallup report found that only 33% of employees feel engaged, a “good bosses'' feeling. So, what about the rest of the surveyed employees?

Many reported experiencing negative emotions during the workday. These included worry (41%), stress (50%), sadness (22%) and anger (18%)—all feelings that typically result from working with a toxic boss and lead to burnout.

The ripple effect of a toxic boss's behavior stretches far beyond individual interactions. Their continuous negative actions can lead to broader organizational consequences. Here’s how they impact the core pillars of your company's workforce:

  • Decreased morale

A toxic boss can make employees dread coming to work, affecting their overall job satisfaction.

  • Reduced productivity 

Constant criticism, lack of clear direction and the stress of walking on eggshells can drastically reduce an employee's output.

  • High turnover rates 

Faced with a hostile work environment, employees often choose to leave rather than deal with the daily stress, leading to high recruitment and training costs for the company.

  • Increase employee burnout

The same 2022 Gallup report identified five sources that lead to burnout. These included unfair treatment at work, an unmanageable workload, unclear communication from managers, lack of manager support and unreasonable time pressure. Of those five burnout factors, all of them have a toxic boss in common, drawing a strong link between bad bosses and employee burnout.

RELATED: Employee Burnout Strategies for Prevention >>

How to Deal with a Toxic Boss at Your Small Business

If you believe you have a toxic boss at your business, such as a manager or supervisor, there are things you can do to minimize damage and turn the ship around. The key is to act swiftly. Here’s what to consider:

  • Be observant 

Regularly check in with your teams and be aware of any sudden changes in group dynamics, morale or productivity.

  • Use anonymous feedback

Implement an anonymous feedback system where employees can voice their concerns without fear of retaliation.

  • Provide training

Provide leadership training for all managerial roles. Often, toxic behaviors can be corrected with proper guidance.

  • Consider third-party mediation

If you suspect you have a toxic boss in your company, consider hiring a third-party mediator to assess the situation and provide unbiased solutions.

  • Act swiftly

If you determine that you do have a toxic manager, take corrective action immediately. This could range from counseling and training to, in extreme cases, termination.

Summary

While every business may face challenges with management styles, it's crucial to distinguish between an occasional misstep and consistent toxic behavior. Addressing the issue promptly not only aids in the well-being of your employees but also in the long-term success of your business. 

If you need help navigating what to do with a toxic boss at your business, including management training, employee discipline procedures and/or termination guidance, reach out to the experienced team at Axcet HR Solutions today