What is bad company culture?
Bad company culture refers to a working environment where negative behaviours, poor leadership and ineffective communication create dissatisfaction and disengagement among employees. It can stem from many things, including a lack of trust, unclear expectations, or failure to support staff properly.
A toxic workplace often results in low morale, high staff turnover, and reduced productivity. Employees in these environments may feel isolated, undervalued or under constant pressure, which can make them more likely to seek opportunities elsewhere.
What is the impact of bad company culture?
A negative company culture doesn’t just affect employees; it can damage the entire business. Here are some of the most common consequences of a bad company culture:
- Increased absenteeism
- High staff turnover rates
- Poor employee engagement
- Reduced productivity
- Difficulty attracting top talent
- Increased workplace stress
- Negative brand reputation
9 signs of bad company culture
Recognising the signs of bad company culture early can prevent long-term damage. If any of the following bad company culture examples are present in your workplace, it might be time to reassess and make some changes.
1. Absence rates are high
Frequent employee absences can be a red flag for bad company culture. While occasional sick days are normal, consistent patterns of absenteeism often indicate deeper issues such as workplace stress, burnout or disengagement.
When employees feel undervalued or unsupported, they may be more likely to take time off unnecessarily. A culture that values its employees by prioritising wellbeing, engagement and job satisfaction can help to reduce excessive absence rates.
2. Staff turnover rates are high
A revolving door of employees could be a sign of a major problem. High staff turnover rates suggest that people don’t see a future within the company, whether due to a lack of growth opportunities, poor management or dissatisfaction with their roles.
Businesses with strong workplace cultures retain talent because employees feel valued and supported. If staff are leaving in large numbers, exit interviews can help you to pinpoint any underlying issues causing employees to move on.
3. New hires don’t stay long
New employees leaving within just a few months of joining could indicate a variety of problems such as unrealistic job expectations, poor management or a toxic working environment. Regular personnel changes can be disruptive and can damage team morale, so it’s important to address these issues quickly.
A strong onboarding process helps to make new hires feel welcomed, prepared and confident in their roles. By setting them up for success from day one, you show that you care about each individual and you’re invested in their growth and long-term success within the company.
4. High-performing employees leave
When top performers seek opportunities elsewhere, it’s often a sign that they don’t feel recognised or see limited room for growth. Talented employees want to be challenged and rewarded for their contributions, and it’s your job to make this happen.
Onboarding, performance reviews and career development opportunities are crucial touchpoints, helping you to support each individual throughout the entire employee lifecycle. This helps to ensure that high achievers remain engaged and committed to a future with your company.
5. Employees don’t take breaks
According to our Annual Leave Report, many employees don’t use their holiday entitlement, leading to stress and burnout. Skipping breaks and attending work every day might seem like a sign of dedication, but it often suggests a bad company culture where employees feel like they have to sacrifice their well-being to meet expectations.
While the negative effects of the long-hours culture are well known, many businesses still fall victim to taking advantage of their employees, even if they don’t mean to. Encouraging a healthy work-life balance is key to ensuring that all team members are well rested and ready to do their best.
6. Employees show visible signs of stress
Persistent stress is a major indicator of a negative company culture. Employees who feel overworked and unsupported may show visible signs of stress, such as increased absenteeism, frequent mistakes, irritability, exhaustion or a decline in overall performance.
Workplace stress doesn’t just affect individuals; it impacts team morale and productivity, and can cause your business and its profits to suffer. Prioritising mental health and wellbeing in the workplace is essential for keeping employees happy and healthy to ensure long-term success.
7. Promotions are few and far between
If employees don’t see clear career progression, their motivation may drop. A company that rarely promotes from within could be stifling employee growth, failing to recognise talent, or hindering innovation by not fostering fresh ideas.
Clear progression and a culture that promotes internal recruitment helps businesses to retain and develop their workforce. By encouraging personal growth and rewarding hard work, you can encourage employees to remain dedicated to the company’s success.
8. Workplace gossip is common
A culture of gossip indicates a lack of transparency and trust, and can create unnecessary conflicts among employees. This could suggest that workplace communication is poor, goals are poorly defined, or that management fails to address concerns openly and honestly.
As well as developing clear communication strategies regarding important business matters, encouraging open and honest informal communication can foster a healthier working environment. This helps to limit the spread of misinformation and prevent harmful speculation.
9. Employees leave bad reviews of the company
Glassdoor and similar platforms can provide insights into company culture through the first-hand experiences of employees. If current or former employees leave negative reviews, it could be a sign of bad company culture.
Tracking your Net Promoter Score can help you to measure employee sentiment and identify areas for improvement before they become too serious. Regular feedback loops and open communication channels can also help tackle problems before they lead to high turnover or decreased morale.
What causes a negative company culture?
A negative company culture doesn’t appear overnight. If you’ve spotted signs of bad company culture, here’s what might be contributing to the problem.
1. Ineffective management
Poor leadership often leads to disengaged employees. Micromanaging or failing to provide clear direction can create frustration and inefficiencies that turn into a bad company culture if left unchecked.
2. Inconsistent expectations
When employees don’t know what’s expected of them, productivity and morale suffer. Clear goals are key to encouraging autonomy at work, which can help to maintain engagement by giving employees a sense of ownership over their roles.
3. Lack of communication
Clear, two-way communication is essential for creating a healthy workplace culture. Improving workplace communication can help you to strengthen relationships and avoid misunderstandings that can lead to frustration.
4. Poor work-life balance
Overworking employees leads to burnout, which can have a dramatic impact on productivity and morale. Encouraging flexibility and remote or hybrid working options can help to improve employee work-life balance and job satisfaction.
5. High levels of workplace stress
A workplace that fails to address high levels of stress could be a sign of bad company culture. Introducing wellbeing strategies such as duvet days or flexible working hours can give employees much-needed time to recharge.
H3: 6. Confusion about roles and responsibilities
Unclear job descriptions create frustration and inefficiency as employees aren’t sure what’s expected of them. Clearly defining roles and responsibilities can enhance employee engagement and encourage growth.
7. Not defining core values
A company without clear values lacks direction. Defining your core values, such as who you are and what you stand for, can improve company culture by helping employees to feel connected to a shared purpose.
8. Failing to show appreciation for employees
Employees who feel unappreciated are more likely to disengage or leave. Motivating employees through recognition and rewards can help to foster a positive culture, but shouldn’t be used as a quick fix for deeper issues.
Monitor your company culture with PeopleHR
Transforming a bad company culture requires more than just recognition; it demands action. With the right tools, businesses can track employee engagement, identify pain points and create a more positive working environment to support long-term business growth and success.
PeopleHR’s employee benefits platform is a great tool for businesses looking to prevent or [turn around] a negative company culture by improving employee retention and engagement.
Want to see how PeopleHR can transform your workplace culture? Book a demo today or contact our team to learn more.
