At some point in your career, you're bound to run into a toxic employee. If you're super unlucky, you'll run into several at one time. And when you do, you'll need to prepare yourself and your team with prevention and management strategies.
Toxic employees eat away at team morale, they drain your focus, and slowly but surely, they push your best people to the brink of burnout. But the most infuriating part is that toxic behaviour rarely just shows up all at once. It starts gradually and develops over time, where signs are given off through behavioral patterns. And before you know it, your whole team is walking around under a weight of stress, packed with tension.
If you don't learn how to spot these toxic behaviours and get a handle on them ASAP, they'll just continue to build and damage both the well-being of your team and the performance of your company. This guide is going to walk you through the exact steps you need to take to stop these problems in their tracks. No beating around the bush – just straight up advice to help you keep your team away from toxicity and in tip-top shape!
Identifying toxic employee behaviors in the workplace
The one thing that makes ordinary employees different from toxic employees is their continued and persistent pattern of bad behavior. It's this consistency that turns the wheel and creates a hostile work environment that's hard to endure – for the entire team.
But how do you know what to look out for? What negative behaviors are tell-tale signs of a toxic coworker?
Warning signs of toxic behavior
- Complaining and blame-shifting are two of the most common toxic behaviors. These employees always find fault with processes, colleagues, or company decisions, and they never take responsibility for their own actions. They refuse to believe they take any part in a problem.
- Gossiping and spreading rumors create tension and break trust between team members. Toxic workers love drama. They deliberately share confidential information and use disruptive behaviour to create conflict between team members.
- Not collaborating and undermining authority is something you can spot through a passive-aggressive approach. It's a disruptive behaviour that can take the form of resistance to team projects, dismissing others' ideas in meetings, or openly questioning management decisions in front of the whole team.
- Intimidating colleagues through aggressive communication, such as interrupting others, raising their voice, using aggressive body language, or making threats. This behavior creates a toxic work environment that affects everyone’s well-being and drives workplace tension. Learning how to improve interdepartmental communication might reduce chances of this happening in the future.
- Last but not least, deviating from team values your company shares is one of the biggest signs that behavior is about to become toxic if it hasn't already.
The impact on team performance
There's a bunch of research out there on the impact of toxic employees in the workplace. Studies have proven that having a toxic employee on your team is a total drag on multiple levels.
#1 Employees with a toxic colleague are 54% more likely to quit.
#2 To avoid dealing with toxic team members, 20% of employees call in sick. This contributes to an estimated $86 billion in lost productivity (annually).
#3 Toxic leaders have a disastrous impact on team morale and productivity. Teams led by toxic leaders report higher stress levels and worse job satisfaction because they undermine employees' morale, confidence, and performance.
Toxic employees tend to make overall team productivity drop. They also make other team members avoid work, give up, and stop caring. That, or they spend all their time talking about how much they dislike the toxic person.
Five common types of toxic employees
If you learn to identify the type of toxic employee you have on your hands, you'll be in a much better place to manage them early. That way, you can tailor your approach to cut through the disruptive behavior quickly.
The workplace bully
You'll spot this toxic team member by the aggressive way they push others around and position themselves first. They walk around taking credit for the good work of their teammates, and they turn the whole place into a hostile environment. They often use their seniority to dominate meetings and override codes of acceptable behavior, making other employees feel like they're walking on eggshells.
Bullies often target new hires. They also have a nasty impact on your best people by driving them off or turning them into disengaged zombies who just want to avoid any more conflicts.
The chronic complainer
This toxic employee is the constant complainer. They find fault with everything (literally), and they're always pessimistic. Their negativity pulls the morale of the entire team down. Forever whinging and moaning, they drain your energy levels. Another thing they also tend to do really well is push back on change, and any new ideas get scraped before they're even considered.
As chronic naysayers, they affect the whole team by spreading their sour vibes and making the positive thinkers wonder if they're just being too optimistic. Their negativity can also completely undermine all the efforts the leadership team and founders put into keeping things upbeat during tough times.
The slacker
This difficult employee is a bit like a wasted resource. They're always missing deadlines, showing up late, and leaving others to pick up the slack. Even though they seem engaged in meetings, in reality, they're not following through on any of the commitments they make. The result? Everyone else has to shoulder the extra load.
When you have this type of toxic employee on your hands, resentment builds among the high-performers in your team. Having to step in and cover for this slacker on top of their own work is usually what leads to burnout and, in the worst-case scenario, a resignation.
If you learn how to improve employee engagement, that might reduce the chances of having the slacker in your team.
The drama creator
These toxic workers are masters of creating conflict, spreading rumors, and they're the ultimate gossipers. Manipulation is one of their main weapons of choice. They're masterminds at getting people to start a fight or manufacture some crisis that'll get everyone talking. If they can get the manager to step in and sort out the mess they've created, it's like a cherry on top for their ego.
These drama queens (and kings) are a huge distraction from the actual work at hand, and they force managers to spend their time putting out fires instead of leading and innovating the business.
The know-it-all
This toxic team member is the person who talks down to everyone else, refusing to listen to any ideas that aren't theirs, and insisting on being right all the time. They might interrupt people in meetings, offer unsolicited feedback and advice, or refuse to go with the approved procedures just because they have a different take on things.
Despite your best efforts as a leader, know-it-alls don't understand boundaries, have zero tolerance for creativity, and collaboration is nonexistent in their dictionary. All this makes them a major roadblock to innovation and success.
5 Steps to address toxic behavior, immediately
When you spot a toxic employee, you need to act fast. That means before that person's toxic behaviour and negative impact can be felt and mirrored by the rest of your team, before it damages productivity, and before it leads to a rollercoaster of negative emotions.
Here are the five steps you need to take to nip toxicity in the bud!
1. Record the incidents in detail
First, log the facts immediately. Make a detailed list of the specific toxic behaviours you've witnessed. Where possible, include the time and date, who was there to witness it, and what happened exactly. This log is going to be helpful in case you need to take any disciplinary action and in case the toxic employee ends up taking legal action against the organization.
2. Get in a private meeting with the person as soon as possible
Ideally, you want this to happen within 48-72 hours of realising the problem. Pick a neutral spot (a conference room is a good place) rather than your own office to keep the tone of the conversation on a professional note. This way, you can keep things from escalating too far, while also showing that you're taking the issue seriously.
3. Set clear expectations for how the person's behaviour needs to change
Focus on specific things the person needs to do differently, rather than trying to tell them how to be a better person. For instance, "You need to make sure you turn up on time and make a decent contribution to meetings" is a lot more actionable than saying "You need to stop being such a grump".
4. Create an improvement plan with some clear milestones
Schedule regular check-ins to see how things are going. These meet-ups aim to create a structure that lets you see whether the person is actually making progress, while also giving them a chance to prove they're capable of turning things around. Checking in once a week for the first month is a good idea.
5. Go and tell your HR rep and your boss what's going on.
It's important that you have the support of your boss and the HR department. Get some guidance on how to do things the right way from a human resources standpoint. Usually, you can get some useful templates to help you document everything, and so you can navigate the company's disciplinary procedures.
Proven strategies for managing toxic employees
Managing toxic employees takes a solid game plan. One that doesn't just protect the organisation, but also the individual's rights. Sounds complex, right? That's because, in reality, it very much is a hard thing to effectively deal with and manage.
But there are strategies out there that actually work wonders. They can reset the entire team dynamic and bring back a positive work environment. These strategies work across industries and can be applied to teams of any size.
Conduct private performance discussions
Performance discussions can be a real challenge - but they don't have to involve being put in the hot seat. You just want to get the conversation to be open, respectful, and productive. Here's how to do it right.
1. Pick a neutral spot to have the chat
Avoid holding the meeting in your own office - or any place that's gonna make the other person feel uneasy or like they're walking on eggshells. Choose a neutral spot like a conference room, and it keeps the tone professional and helps both of you to actually focus on the conversation and not the surroundings.
2. Be clear and honest
Avoid vague feedback and focus on addressing the exact issues that create problems for the team.
In stead of saying:
"Your behaviour is not up to scratch."
Say something like:
"Last week in our project meeting you interrupted Sarah three times in quite a rude way which really set a bad tone for everyone for the rest of the meeting."
When you use specific examples and clearly explain what types of behaviours are not okay, the person has something concrete they can reflect on. This increases the chance of that person actually trying to fix their approach.
3. Actually listen properly
Sometimes what looks like a problem with someone's performance is actually something deeper going on. Maybe they're feeling overwhelmed, or they simply don't understand what's expected of them. So before you go leaping to conclusions, listen to what they have to say.
4. Be a rock, not a wall
If they're struggling with personal stuff, listen to them and try to have a level of empathy for their situation. Suggest practical fixes and next steps - whether that be pointing them in the direction of employee support or suggesting some counseling.
5. Focus on the action, not the person
Keep the focus on what the person is actually doing, not their character. Instead of telling them what's wrong with them as an individual, tell them how what they're doing (or not doing) is affecting the team and the workflow. That way, you keep their ego intact and still get the message across about what needs to change.
Implement clear consequences and accountability
Accountability doesn't imply punishment. It's more about giving people the clarity and structure they need to actually get the job done. When everyone is on the same page and knows exactly what's expected, things just move along a lot better and with a lot more trust.
1. Get the ball rolling with a clear plan
Start by giving your team member clear instructions. Have a look at a written Performance Improvement Plan (PIP). It helps to keep things fair and transparent.
Set some clear, specific goals that can be measured. Things like:
- Be on time for meetings
- Get your project updates to me by Friday at 5 pm
Having clear targets like that makes it a whole lot easier. Now everyone knows what success looks like.
2. Establish the consequences right from the start
Clarity also assumes there will be consistency, so outline what happens if progress gets stalled.
For example, your consequences might include:
- First off, a quick verbal reminder
- Then, if that doesn't work, a written warning
- And if that's necessary, then a suspension or termination
It's not about being the "bad guy," it's about being fair. You are showing that you have made an effort to help the person get back on track, and you are keeping a record of everything.
3. Set goals you can actually measure
Avoid vague goals and outcomes and use the ones that can actually be measured, like:
- Cut client complaints by 50%
- Show up on time to all meetings, no more reminders needed
- Start contributing more to team projects
The clearer your goals are, the easier it is for everyone to see how your doing, and when it's time to make some adjustments.
4. Keep the dialogue going
Once the plan is in place, keep the dialogue going. Set a time each week to review progress, discuss any challenges that have come up, and have a celebration for all the little wins. This is the best way to keep the momentum going and to show the person that you are in this together, not that they are just under the gun.
Modify work arrangements when necessary
Sometimes, the best way to solve a "people problem" is to change the environment around it. A few smart adjustments can reduce tension, protect the team’s morale, and give someone the space they need to reset from a toxic employee.
1. Assign independent projects
If one person’s behavior is affecting the team, consider assigning them solo projects for a while.
It gives the rest of the team room to breathe, and gives that individual a chance to prove they can stay focused and professional without constant friction.
2. Consider remote work options
If their role allows it, remote work can help cool things down. Distance can be a super effective tension diffuser. Without the small daily triggers that happen in shared spaces, people can focus more on work and less on personalities that drive tension around toxic employees.
3. Redesign how the team interacts
When meetings or collaborations get messy, structure helps. Set clear rules for discussions, assign roles during team calls, or pair the person with a calmer, more balanced teammate. A little structure can go a long way in turning chaos into cooperation.
4. Introduce a buddy or mentorship system
Pair the struggling employee with someone who models the right behavior – a peer they can learn from. A solid mentor can have more impact than a top-down directive. And sometimes, real growth comes from seeing the right habits in action every day.
Documentation and legal protection strategies
Documentation helps shield your organisation from legal headaches and ensures that all employees are treated fairly. Having a clear paper trail shows that you've done things by the book and given the employee every chance to get their act together.
This part is absolutely vital, and it's the one thing you don't want to overlook or speed through.
To make sure you've covered all your bases, here are the main points you need to cover.
Put together detailed incident reports
Incident reports need to have a:
- Date
- Time
- Names of people who witnessed the incident
- Exact quotes that were made at the time
You also need to explain how the employee's behaviour affected everyone else and how it impacted the business. This stuff is a godsend if your organisation gets taken to court.
Saved proof documents
These are all the emails, messages, and written notes that show what the employee was up to and how you tried to sort them out. Having all the digital records means you've got timestamped evidence and the exact words that back up your case.
Record of issues
Your record of issues can include things like attendance issues, deadlines that got missed, and performance metrics data. That way, you can show that the employee's poor behaviour and work habits were a long-standing problem. Having these types of hard facts is a big help if you need to let the employee go.
Keep confidential files separate from the rest of the personnel records
This lets you keep sensitive stuff safe while still making sure that the right people have access to it when needed. These files should include the incident reports, any witness statements, and any other relevant documents that were exchanged during the disciplinary process.
Work closely with HR
Keep in close contact with HR to make sure you're doing the right thing and following the rules when it comes to employment law and company policy. Getting their input regularly will help avoid any mistakes that might lead to being sued or accused of discrimination.
Critical mistakes to avoid when managing toxic employees
Understanding the danger zones managers often fall into when dealing with toxic employees is key to handling difficult people and situations with a bit more finesse and less stress.
There are three golden rules you need to stick to.
1. Never discuss issues publicly with the team
When toxic employee issues pop up and performance problems arise, do your best to resist the urge to make them public.
It's your job to keep things professional and private.
Keep it private
- Handle all performance conversations one-on-one, never in front of the team.
- Avoid public criticism of toxic behavior – it embarrasses the employee and creates a culture of fear and mistrust.
- Confidential discussions are far more effective for behavior change (and safer from a legal standpoint).
Avoid gossip at all costs
- Don’t talk about the situation with other team members or share “updates.”
- Gossip from leadership sends the wrong message to the rest of the team: "Negativity is okay".
- Protect your team’s focus and morale by keeping all details strictly confidential.
2. Don’t take toxic behavior personally
When someone’s behavior turns toxic, it’s easy to take it to heart, but the thing you need to remember is that it’s rarely about you. Most of the time, it comes from stress, frustration, or personal dissatisfaction.
Staying calm and objective helps you lead with clarity instead of reacting emotionally.
Stay calm and protect your focus
- Try to stay calm and composed, even if things get really tense.
- When you're calm, you demonstrate control, and this sets the standard for the team.
- Be resistant to others' negativity – it will only drain your focus.
- If it all gets too much, reach out to HR for support.
Focus on actions, not assumptions
- Stick to the facts, not feelings.
- Address specific behaviors, like what was said or done, without trying to guess motives.
- Avoid assumptions that could lead to bias or unfair treatment claims.
- Document every step clearly and consistently.
3. Avoid impulsive reactions and immediate termination
When a toxic employee really pushes the line, it can sometimes be hard to control the urge to fire them on the spot. However, this is an impulsive reaction you want to avoid at all costs, and here's why: Immediate termination can cause more harm than good, both legally and culturally.
It's absolutely vital you follow the proper protocol because this is what will protect your integrity, as well as the company's.
Follow the process
- Find your company's disciplinary policy and follow it in its entirety.
- Don't skip steps that might feel difficult or time-consuming because they might result in legal risks.
- If possible, give the toxic employee the opportunity to improve.
- Document everything, including conversations, warnings, and improvement plans.
Involve the right people
- Where necessary, get the support of your senior leaders and HR to help make big decisions.
- Always seek HR and legal support and advice before moving toward termination.
Prevention: Screening for toxic traits during hiring
Preventing the not-so-great employees from joining your team is about a thousand times easier than dealing with the fallout after you've given them the job. Throwing a bunch of screening processes at the problem before they even get in the door is a heck of a lot more effective.
So here are four toxic employee tests you can run before you let them sign on the dotted line.
1. Use real-life behavioural interview questions
This lets you see how good someone is at working with others and dealing with conflict. Ask questions like:
- "Tell me about the last time you disagreed with a colleague's approach. What did you do about it?"
- "Can you give an example of a time when you had to work with someone who was a real pain to work with? What was your approach?"
- "Give me an example of a time you made a mistake. How did you own up to it and put it right?"
2. Check out their references
One of the best places to check a person's character and track record is to speak with the people they've worked with before. Their old boss or former colleagues are a great place to get some real insight into what this person is like.
4. Get some of your team members involved
It helps to get other perspectives and judgments from the interview process, so you get a feel for whether this person would gel well with your people. It's also a great chance to see how they interact with your team and whether they seem like a good fit or not.
5. Do a trial run
If you can, do a trial run with a probationary period of 90-180 days to see what they're actually like in the real world. This gives them time to show you what they're made of, but it also gives you time to decide not to go with them if things don't work out.
ActiveCollab: Collaboration & clarity to battle toxicity
Working with a toxic employee isn't easy. Managing one can be even harder.
But an opportunity exists in every challenge (doesn't it?). With toxic employees, the opportunity lies in setting up an operation that promotes collaboration and clarity and prevents toxicity from making an appearance in team interactions.
When you set up processes that allow and foster clarity, fairness, and proper documentation, you’re not just avoiding the potential for toxic behavior patterns to thrive. You’re protecting your team, strengthening your culture, and setting a standard that says: this is how we work here.
But part of that setup also needs to include the right tools and training for your people. ActiveCollab is a platform that has been created for service businesses that need one source of truth that also doubles as an organization and team (and client) collaboration hub. When every project is set up transparently, with clear deadlines, and when tasks are neatly assigned and tracked in real-time, there are fewer opportunities for things to go wrong.
So, when you put the right systems in place, toxicity has fewer places to hide, and your team can do great work and deliver outcomes for clients without constant friction.
When you have a workspace that keeps tasks, communication, time tracking, and expectations in one place, it becomes a lot simpler to spot issues early and support people the right way. And that’s what ActiveCollab promises to do for you, your team, and your clients.
If you want to create a calmer, more structured environment where your team can actually focus on great work and avoid workplace drama, give ActiveCollab a go.
Sign up for our 14-day free trial or book a demo call with one of our people to see how the app can work for you!