There's a saying that goes, "People don't leave jobs; they leave managers." That truth is never more evident than when a toxic boss is at the helm.
As a Kansas City HR company, we’ve seen firsthand how toxic leadership can infect a company’s culture, tank morale and drive away top performers. Small and mid-sized businesses are especially vulnerable—with fewer layers of oversight, one toxic manager can impact an entire team or department quickly.
According to 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.
In this post, we’ll define what makes a boss toxic, explore signs of toxic leadership, and show small business owners how to recognize and address the damage before it spreads.
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.
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Toxic bosses don’t always shout or storm through hallways. Often, their harmful behavior hides behind micromanagement, passive aggression or selective praise. Watch for these red flags:
They control every detail, leaving employees feeling distrusted and disempowered.
Instead of providing feedback in private, they call out employees in front of others—damaging confidence and creating fear.
They’re quick to point fingers when something goes wrong, but rarely (if ever) take responsibility for their own actions.
Important details are left out, or instructions are deliberately vague—setting employees up to fail.
The toxic boss shows clear favoritism toward certain employees, which divides teams and kills morale.
They present team efforts as their own while failing to acknowledge individual contributions.
They cut off ideas, ignore employee feedback or say things like, “I don’t pay you to think.”
Phrases like “That’s not my problem” reveal an unwillingness to lead with integrity.
Mood swings, outbursts and retaliatory behavior keep teams on edge and erode psychological safety.
A common thread? These managers lack emotional intelligence (EI)—the ability to recognize, understand and manage their own emotions while empathizing with others. Toxic bosses often fail on all counts.
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Toxic leadership often reveals itself through everyday language. When a manager consistently uses demeaning, dismissive or manipulative phrases, it creates a hostile work environment that damages morale, productivity and employee retention.
If you’re hearing things like this at work, it may be a sign of a toxic boss:
"That’s not my problem."
This phrase signals a lack of accountability and support. Good leaders take ownership, even when the issue isn’t directly theirs to solve.
"You should be grateful you even have this job."
This guilt-driven statement attempts to suppress valid concerns and discourage employees from speaking up about mistreatment or unrealistic demands.
"I don’t pay you to think."
Dismissing employee input undermines innovation and shows a clear disregard for team members' ideas and intelligence.
"Why can’t you be more like [other employee]?"
Comparisons create division and insecurity. Instead of motivating, this kind of comment fuels resentment and lowers morale.
If these phrases sound familiar, it’s worth assessing the broader workplace culture. While no boss is perfect, patterns of toxic communication are a red flag that shouldn’t be ignored.
Not every frustrating manager is truly toxic. Here's how they differ:
| Bad Boss | Toxic Boss |
| Occasionally disorganized or curt | Consistently undermines or manipulates |
| Open to feedback (even if defensive) | Dismisses concerns or retaliates |
| May improve with coaching | Rarely improves without intervention |
| Unintentional harm | Habitual, damaging patterns |
A 2022 Gallup report found that only 33% of U.S. employees feel engaged at work. The rest often report negative feelings: stress (50%), worry (41%), sadness (22%) and anger (18%). Many of these symptoms trace back to poor management.
Toxic bosses:
Drain morale
Undermine productivity
Drive up turnover
Fuel burnout
According to Gallup, five factors most strongly correlate with burnout—and all are linked to bad management:
Unfair treatment at work
Unmanageable workloads
Lack of communication from managers
Lack of manager support
Unreasonable time pressure
In short: a toxic boss isn’t just a personality clash. It’s a liability.
If you suspect a toxic manager is harming your team, act quickly. Here are steps small business owners can take:
Regularly check in with your teams and be aware of any sudden changes in group dynamics, morale or productivity.
Implement an anonymous feedback system where employees can voice their concerns without fear of retaliation.
Provide leadership training for all managerial roles. Often, toxic behaviors can be corrected with proper guidance.
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.
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.
Not every bad boss is toxic. But when the behavior becomes chronic, it’s time to intervene. Protecting your team and your business means addressing toxic leadership directly and swiftly.
If you need support navigating how to handle a toxic boss at your company—from coaching and documentation to disciplinary action—Axcet HR Solutions can help. Reach out today >>