Toxic workplace or thriving team? 4 red flags and signs of a healthy company
In today’s rapidly evolving work environment, companies that prioritize psychological safety and employee well-being are reaping measurable benefits. According to the 2024 “Work in America” survey by the American Psychological Association, companies that foster emotional well-being see stronger retention, higher productivity and more engaged teams.
In fact, 70% of workers say their psychological well-being has a strong positive impact on their productivity, and 93% of those with higher psychological safety feel they matter to their employer.
It’s clear that a healthy work environment benefits everyone, yet nearly 75% of workers have experienced a toxic work environment, according to a 2025 study done by iHire.
Perhaps even more telling: almost 60% of employees said they would rather accept a lower-paying job than stay in a toxic workplace. That shouldn’t be surprising, as these types of environments often harm mental health, destroy self-confidence and lower productivity.
“These cultures aren’t just unpleasant, they’re unproductive,” explains Brandon Dawson, the chairman and co-founder of health and wellness company 10X Health System. “People spend more time navigating internal politics or protecting themselves than driving results.”
What is a toxic work environment?
A toxic workplace is where negativity, fear and mistrust dominate a company culture. You might see it show up as gossip, passive-aggressive behavior, stagnant growth, cliques among employees, lack of recognition or outright hostility between departments and company leaders.
More than half the workforce has admitted to working in a toxic workplace, but often because of external pressures rather than choice. “Many employees endure toxic environments out of necessity, but this inevitably leads to burnout, disengagement and, over time, can damage confidence and mental health,” says Wende Smith, the head of people operations at BambooHR.
Common signs of a toxic workplace
Toxic workplaces are more than just a bad boss; it’s a negative culture that can leave long-lasting scars.
“When things are toxic at work, you know it,” says Dr. Jason Walker, the program director and associate professor of Industrial-Organizational and Applied Psychology at Adler University. “When bullying, power games, exclusion, gossip and fear-based leadership are the norm, you know you’re working in an environment that’s broken.”
1. High turnover
Toxic workplaces see high turnover, meaning employees onboard but don’t stay long. Not only does this disrupt workflow, but it also damages team morale. Whether it’s micromanagement, office politics or poor leadership, something is pushing them out the door.
2. Low morale
When employees feel unsupported, unappreciated and constantly under pressure, morale drops. Team productivity decreases across the board, and worse, disengagement becomes infectious.
Smith explains that “a toxic work environment doesn’t just hurt performance; it chips away at confidence, connection and well-being.” Employees don’t want to do their best work — not because they are unable, but because even when they do, it’s not enough.
When a company supports its employees, they feel a sense of belonging to their organization. A study by Rasool, et al. in the International Journal of Environmental Research and Public Health found that employee well-being directly correlates with engagement with their daily work. Companies that support their employees see higher levels of morale and improved productivity.
3. Resistance to change
Dawson notes that “what makes [the environment] truly toxic is that the dysfunction becomes part of ‘how things are done,’ and no one feels safe or empowered to change it.” This resistance to improvement is the death of innovation, and it’s what makes employees feel so stuck.
Businesses thrive when they embrace change and encourage new ideas. Culture and industries are constantly changing, and companies that adapt and grow alongside them cultivate the best working culture.
4. Lack of transparency from management
Lack of transparency from managers and higher-ups often leads to mistrust, speculation and gossip. Clear communication leads to trust and builds a healthy work environment. The opposite leads to toxicity.
“If people feel unheard or unsafe, they can’t do their best work,” explains Smith. “As leaders, it’s our job to foster a culture where respect, kindness and accountability are the norm.”
A manager who people want to work for listens to their employees and communicates often, even when they don’t have all the answers. “When we prioritize healthy communication and psychological safety, everyone wins,” she adds.
How toxic workplaces emerge
When managers fail to set clear expectations, communicate openly and model respectful behavior, dysfunction spreads and a toxic workplace is born. Over time, the culture becomes defined by fear, politics and survival rather than collaboration and growth.
Even established professionals like Smith have endured toxic workplaces, but they learned how to come out ahead: “Early in my career, I had a manager who used fear and uncertainty as a control tactic. It was a stressful time to be navigating a complex and unhealthy work relationship as a young person.”
Smith explains how by documenting the behavior, she was able to empower herself and lay the groundwork for self-advocacy, which ultimately helped her overcome the toxicity. “It taught me that, as important as your job is, the cost of a toxic manager wasn’t worth the paycheck.”
What should I do if my workplace is toxic?
“There are ways to survive [a toxic work environment], but you shouldn’t have to,” shares Walker. Because not everyone has the means to quit, you may find yourself among those who try to tough it out, “but it’s really like staying in a smoke-filled room and trying not to cough,” he adds.
Walker shares that toxic environments often lead to burnout, anxiety, depression and, in some cases, PTSD. “You don’t leave that workplace unaffected either — the emotional fallout lasts.”
If you find yourself working in a toxic workplace, Dawson recommends that you:
- Control your controllables: You can’t change others, but you can control your attitude, performance and boundaries.
- Document and communicate: Keep track of issues and address them with solutions, not just complaints.
- Seek alignment: Gravitate toward people with a growth mindset who want to elevate the culture.
- Use it as a test ground: Treat the environment as training for leadership. If you can positively influence culture here, you can do it anywhere.
While toxic cultures drain energy and stifle performance, the opposite is also true — positive work environments fuel productivity, collaboration and employee satisfaction.
Common signs of a healthy work environment
A thriving workplace doesn’t happen by accident; it’s carefully built by implementing intentional practices that support, empower and value employees. Here are some of the most common signs you’re in a healthy work environment:
1. Open communication
A healthy culture thrives on trust — and trust starts with communication. In healthy work environments, information flows freely, and people feel safe speaking up with ideas, concerns or feedback without fear of retaliation.
2. Growth and development opportunities
Whether it’s mentorship, training programs or clear promotion pathways, employees are encouraged to grow their careers.
3. Employee well-being is a priority
From flexible schedules to comprehensive benefits and mental health support, healthy companies recognize that employees are whole people with lives outside of work.
4. Culture of collaboration
Healthy teams don’t see each other as competition; they instead work together. Collaboration looks like departments sharing resources, teammates celebrating each other’s wins and leaders encouraging ideas from everyone.
5. Employee recognition
Acknowledging effort and celebrating accomplishments keeps morale high. In strong company cultures, recognition comes from both the top down and from peers.
Positivity breeds positivity: All hope is not lost
“By the law of attraction, negativity attracts more negativity — but so does positivity,” Dawson explains. You have the power to change the environment around you, and “how you show up each day will determine whether you feed the toxicity or start changing it.”
You can be the catalyst that changes a toxic workplace, so speak up and find allies who can rally with you.
What is USA TODAY Top Workplaces 2025?
Do you work for a great company? Each year, USA TODAY Top Workplaces, a collaboration between Energage and USA TODAY, ranks organizations across the United States that excel at creating a positive work environment for their employees. Employee feedback determines the winners.
In 2025, over 1,500 companies earned recognition as top workplaces. Check out our overall U.S. rankings. You can also gain insights into more workplace trends and advice by checking out the links below.
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