The Cost of a Toxic Culture

Is your workplace toxic?

ARG is often hired to train on Psychological Safety and Building Trust in the workplace. The toxicity of the culture inevitably comes out when a member of the team builds the courage to say something to the effect of, “It would be nice if senior management was part of this discussion.” That one statement will often open up real discussion on the culture and the toxicity of the organization. 

In this your weekly Tea With ARG, let’s talk about something that can quietly drain the success of any organization: toxic culture.  

(Rather listen, check out Weekly Tea with ARG on the Spared Change Podcast)

A toxic work environment doesn’t just affect morale—it impacts productivity, retention, and even the bottom line. When negativity, poor communication, or lack of trust take root, engagement drops, innovation slows, and high-performing employees start looking for the door. The cost of ignoring culture is far greater than the effort it takes to build a healthy one. A 2019 report commissioned by Society of Human Resource Management, titled, The High Cost of Toxic Workplace Culture, shows that the aggregate cost of a toxic culture cost American employers over $223 billion in a 5 year period.  

 How much is workplace toxicity costing your organization? 

Here are three major ways a toxic culture can harm your team and business:  

1. High Turnover and Burnout. When employees feel undervalued, unheard, or overwhelmed, they disengage or leave altogether. The constant cycle of hiring and training replacements is costly in both time and resources.  

2. Decreased Collaboration and Innovation. Toxic cultures breed fear and competition instead of teamwork. When people don’t feel safe to share ideas or challenge the status quo, creativity and problem-solving suffer.  

3. Reputation and Customer Impact. A poor internal culture eventually spills outward. Unhappy employees lead to lower-quality service, negative reviews, and a damaged reputation that can take years to repair.  

This week, take a moment to assess your culture.

• Are there signs of disengagement, lack of trust, or resistance to collaboration?

• More importantly, what’s one action you can take today to foster a healthier, more positive work environment?  

As you sip your tea (or coffee), remember:

Culture isn’t just about how people feel—it’s about how well they work together and how successful your organization can be. Choose to invest in a culture that lifts people up, not one that weighs them down.  

Here’s to leading with intentionality. As always, remember to conquer and cultivate. Have a great week!  

Weekly Tea with ARG is a weekly reflection designed to inspire leaders to build intentional, values-driven culture through actionable insights and thoughtful practices.

If you are looking for support to strengthen your company's culture or build team resilience, reach out to us at ARG Coaching & Consulting Group, we are here to help your team conquer change and cultivate results.