The views expressed by the business participants are their own.
As an entrepreneur for 17 years and now working on my fourth company, I already know how important it is protect the company culture. Building a successful company is about more than hitting revenue goals or scaling quickly – it’s about fostering a healthy, vibrant work environment where your team can thrive. A toxic culture will degrade that faster than you can imagine.
Here are some hard-learned lessons I’ve gathered over the years about identifying a toxic culture and, more importantly, how to fix it before it’s too late:
1. Toxic culture doesn’t always look toxic at first
It’s easy to think of a toxic culture as blatant disrespect, conflict or disrespect. But in my experience, it starts in the most subtle ways: passive comments, cluster formation, communication breakdowns and employees feeling like they can’t talk.
At one of my previous companies, I didn’t notice these red flags until they started showing up in our results – people missing deadlines, more frequent sick days and a noticeable drop in team morale. By the time I realized it, the culture had started to rot from within. The poison starts out small, but its impact grows rapidly.
Related: These Toxic Situations Are Biggest Employee Concerns – Is Your Company Guilty of Them?
2. As a leader, you set the tone – always
One of the biggest mistakes I’ve seen leaders make is thinking that the culture will take care of itself. It doesn’t. You, as an entrepreneur or business leader, are responsible for setting the cultural tone.
As a leader, make a conscious effort to do this leading by example. That means being transparent with my team, reinforcing our core values, and creating a space where everyone is heard. It’s not enough to say you have good company values — you have to live them every day. If the leader doesn’t walk the talk, no one else will.
Keep a pulse on your team’s dynamics. Stay in touch with employees at all levels – not just your superiors – to uncover unspoken issues that may be escalating.
3. Toxic culture kills talent – and fast
It’s not just manufacturing that is perishable when a company has a toxic environment – it drives your best people out the door. One of the hardest lessons I learned early on was losing talented employees because of problems I didn’t fix in time.
A toxic culture kills creativity, enthusiasm and the will to stay. One powerful way to restore culture in your company is for all employees to own their work, collaborate freely and feel proud to be a part of something meaningful. If your team feels valued and supported, they will always be there. They will leave if they don’t, no matter how great the product or the payment.
Related: Are You Working for a Toxic Company? Here are 4 Not-so-Obvious Signs to Watch Out for.
4. Don’t wait — fix problems quickly
If you see signs of poisoning – take immediate action. Delay is dangerous. In my experience, waiting to have difficult conversations only allows the problem to grow. Whether it’s poor communication, office politics, or someone undermining your company’s values, these issues must be addressed head-on.
I have adopted a zero tolerance policy regarding behavior that threatens our culture. That doesn’t mean being ruthless – it means being firm about what the company stands for and making sure everyone is on board with that vision. Sometimes, tough decisions have to be made. Allowing toxic behavior to slide, no matter how small, is a slippery slope.
5. Culture is a living thing – nurture it
One of the most important lessons I’ve learned in my 17 years as an entrepreneur is that tradition is not standing. It evolves as your company grows, your team changes and new challenges arise. That’s why I’m always checking in with my team—gathering feedback, checking the vibe and making sure we’re staying true to our values.
Protecting your culture is an ongoing process. It’s not something you can set and forget. You need to take care of it, keep it in shape, and make sure it grows in a healthy way. At the end of the day, your culture is one of your biggest assets – don’t take it for granted.
Related: If You Do Any of These 3 Things, You May Be a Toxic Worker
Ways to get busy creating a great culture
1. Hiring for cultural fit, not just skill: When we hire, we don’t just look for the most qualified person; we are looking for people who fit our values and bring a positive attitude to the team. It is easier to teach skills than to fix a toxic personality. Make cultural fit an integral part of your hiring process — you can’t build a good culture with people who don’t agree with your vision. This is a hot topic, however. If you overestimate cultural fit, you can damage your company’s culture – neglecting the necessary and important skills needed. When you fill a company with amazing people who don’t have the skills, the talented ones tend to get frustrated very quickly.
2. Create a rich feedback environment: I’ve found that creating an open environment where team members feel safe to share feedback is critical to maintaining a healthy culture. Encourage frequent and honest communicationwhether it is a systematic review or a regular check-in. We make a point of listening—both to celebrate wins and to identify areas for improvement. Take time to have monthly scorecard meetings. Identify the topics you want to discuss ahead of time, send them to your group, and give them the opportunity to come ready to engage in meaningful discussions.
3. Celebrate wins, big and small: Building a good culture isn’t just about avoiding the bad – it’s about celebrating the good. To see success – whether it’s hitting a milestone or overcoming a difficult challenge – it strengthens morale and strengthens the bond between team members. Small acts of awareness can go a long way in creating a positive and motivated team.
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