Toxicity in the Workplace Doesn’t Need to Be Managed, but Replaced With Engagement

A recent Inc. article stopped me in my tracks: “It’s Not Just You: This Survey Says Most U.S. Workplaces Are Toxic.” That’s not just a headline, it’s a condemnation. If it’s true, Karl Marx would be grinning from the grave. 

This isn’t just an American issue. Globally, employee engagement is falling, worker dissatisfaction is rising, and toxic cultures are making headlines. The root cause? Believe it or not, it was identified by Marx himself. Employees feel alienated from their work, unsupported by their leaders, and treated more like liabilities than partners. It’s a leadership failure, and it’s costing companies dearly. 

However, there’s good news. Toxicity is not permanent. In fact, creating a healthy workplace culture may be the most profitable thing you can do. 

What a toxic workplace looks like today 

A new study by Massachusetts-based job seeker site Monster offers troubling insight into the current state of the workplace: 

• 30 percent of job seekers say workplace confrontation is worse than it was three years ago 
• More than 20 percent report more “mean” behavior among co-workers in the past year 
• 54 percent believe company culture should evolve, rather than expecting employees to adapt to outdated norms 
• 55 percent think personal boundary overreach from managers is inappropriate 
• 62 percent say companies should post more “niceness reminders” 

Many respondents couldn’t even tell the difference between personality clashes and outright hostility. Also, a rising number of workers are using sick days just to escape their environments, either temporarily or permanently. This is more than a morale problem. It’s a business problem. Culture-driven turnover costs U.S. companies billions annually. Toxicity doesn’t just hurt companies—it hemorrhages them. 

The antidote to toxicity 

For three decades, I’ve worked with companies to improve business results and the lives of employees who drive those results. In my experience, the healthiest and most profitable organizations have one thing in common: They partner with employees to serve customers. 

When companies make this partnership real—not just lip service—everything changes: behavior, accountability, creativity, and engagement. Want proof? Let’s look at a real-life example. 

Inside a thriving culture: One Week Bath 

At One Week Bath, where I own 30 percent of the company, our team is remarkably diverse—across gender, identity, religion, nationality, and political ideology. However, none of that creates conflict. Why? Because our shared focus is on profitably serving customers, together. 

Every week, the company holds an all-hands meeting. Employees celebrate five-star customer reviews, recognize department wins, and forecast and track company-wide progress. When profits increase, bonuses rise—and the whole team sees the connection. 

Matt, the founder, came up with a peer recognition program that encourages employees to spotlight great work by colleagues. Every month, we read them aloud. Smiles. Applause. No toxicity. Just team. 

Recently, Jess, our head of marketing, told us a customer found us by asking ChatGPT, “What’s the best bathroom remodeling company in L.A.?” ChatGPT’s answer? One Week Bath. The room erupted in cheers. Because everyone, from installers to schedulers, knew they had played a role in that moment. 

The quick turnaround 

A common myth is that cultural transformation takes years. In my experience? It can happen in months—if the company gets clear on two things: Serving the customer is everyone’s job. Improvement is a team sport. 

We often start with an economic engagement diagnostic, which helps leaders understand where they stand and what to do next. However, the formula for change is simple: involve employees in meaningful work, reward them for shared success, and focus everyone on delivering value. 

The result? Culture shifts fast. Toxicity fades when employees feel seen, heard, and valued, because they are seen, heard, and valued. 

Scaling success: From private to public companies 

This shift isn’t just for smaller, founder-led businesses. Look at Nucor, America’s most successful steel company. For decades, Nucor has outperformed competitors in one of the world’s toughest industries. Meanwhile, legacy players like U.S. Steel are in long-term decline, fending off bankruptcy. What is the difference? 

Nucor has long practiced decentralized decision making, cross-functional teams, and performance-based pay. Videos and employee testimonials are filled with pride, ownership, and optimism. You don’t need to squint to see it: Their employee environment is exceptional—and so is their financial performance. Culture isn’t a side dish at Nucor. It’s the main course. 

Economic engagement is the antidote 

Unfortunately, companies are increasingly heading in the opposite direction. An MIT Sloan Management Review analysis found that toxic culture was the single best predictor of attrition during the early phase of the “Great Resignation.” Toxicity in the workplace makes it 10 times more predictive of turnover than compensation. That’s not sustainable. You can’t save your way to growth, especially when employees are already disengaged. 

Further, according to the Society for Human Resource Management, toxic workplace culture may have cost U.S. organizations up to $223 billion over five years due to turnover and absenteeism. The real solution isn’t just niceties. It’s shared purpose, shared problem solving, and shared success. When employees feel like partners, they stop looking for the exit. They look for ways to win. 

Across our work, we’ve found that the companies that score highest on economic engagement—where employees are actively involved in serving customers and improving the business—are also the ones with the healthiest cultures and strongest results. These companies outperformed their peers, not just in profitability but in employee satisfaction, retention, and growth. It’s a consistent pattern: Healthy cultures aren’t just nice—they’re profitable. 

Where to begin 

If you’re dealing with a toxic workplace or simply want to prevent one, here’s where to start: 

If you want to accelerate the journey, our economic engagement diagnostic is a proven tool to do exactly that. 

Toxic workplaces aren’t inevitable. They’re a reflection of bad management systems. However, here’s the truth: Toxicity doesn’t need to be managed—it needs to be replaced. Replace it with ownership, purpose, and shared success. You’ll build a better culture, a better company, and a better bottom line. 

The early-rate deadline for the 2026 Inc. Regionals Awards is Friday, November 14, at 11:59 p.m. PT. Apply now.