In today’s rapidly evolving work environment, businesses that prioritize psychological safety and employee well-being are enjoying measurable benefits. According to a 2024 Work in America survey by the American Psychological Association, companies that cultivate emotional well-being see stronger retention, increased productivity and more enthusiastic teams.
In fact, 70% of workers feel that psychological well-being has a strong positive impact on productivity, and 93% of people with high psychological safety are important to their employers.
A 2025 survey conducted by Ihire shows that while a healthy work environment benefits everyone, nearly 75% of workers experience toxic work environments.
I’m probably saying more. Almost 60% of employees say they accept lower pay jobs than staying in a toxic workplace. That’s not surprising, as these types of environments can hurt mental health, destroy confidence and reduce productivity.
“These cultures are not offensive, they are counterproductive,” explains Brandon Dawson, chairman and co-founder of the Health and Wellness Company 10X Health System. “People spend more time navigating internal politics and protecting themselves rather than driving outcomes.”
What is a toxic work environment?
Toxic workplaces are places where negativity, fear and mistrust control corporate culture. You may show up as gossip, passive aggressive behavior, stagnant growth, creeks between employees, lack of awareness or utter hostility between the department and company leaders.
More than half of the workforce admits to working in toxic workplaces, but in many cases it is caused by external pressure rather than choice. “Many employees endure toxic environments, which inevitably lead to burnout, leaving, and can undermine confidence and mental health over time.”
Common signs of toxic workplaces
Toxic workplaces are more than just a bad boss. It is a negative culture that can leave long-lasting scars.
“When things are toxic in the workplace, you know that,” says Dr. Jason Walker, Program Director and Associate Professor of Industrial Organizations and Applied Psychology at Adler University. “When leadership based on bullying, power games, elimination, gossip and fear is the norm, you know you’re working in a broken environment.”
1. High sales
A toxic workplace means employees on board, but it won’t stay long. This not only disrupts the workflow, but also damages the morale of the team. Whether it’s micromanagement, office politics, or poor leadership, something is pushing them out the door.
2. Low morale
Morale drops when employees feel unsupported, unappreciated and constantly under pressure. Team productivity decreases across the team, and worse, leaving can become infectious.
Smith explains, “A toxic work environment doesn’t just hurt performance. It helps you realize confidence, connection and happiness.” Employees don’t want to do the best job. Not because you can’t do it, but because even so, it’s not enough.
When businesses support their employees, they feel that they belong to the organization. Study by Rasool et al. The International Journal of Environmental Research and Public Health found that employee well-being directly correlated with their interactions with daily operations. Companies that support their employees are seeing higher levels of morale and increased productivity.
3. Resistance to change
Dawson points out, “What makes (the environment) truly toxic is that dysfunction becomes part of “how things are done” and no one can make it safe or give it the power to change it.” This resistance to improvement is the death of innovation, which makes employees feel very stuck.
Companies will thrive when they embrace change and encourage new ideas. Culture and industry are constantly changing, and companies adapting and growing alongside them are cultivating the best working culture.
4. Lack of transparency from management
Lack of transparency from managers and tops often leads to mistrust, speculation and gossip. Clear communication leads to trust and creates a healthy work environment. The opposite leads to toxicity.
“If people feel unprecedented or unsafe, they can’t do their best job,” explains Smith. “As leaders, it’s our job to develop a culture where respect, kindness and accountability are the norms.”
Managers who want people to listen to their employees listen and communicate frequently, even if they don’t have all the answers. “If healthy communication and psychological safety are prioritized, everyone wins,” she adds.
How toxic workplaces emerge
If managers cannot set clear expectations, open communication, respectful behavior, spreading dysfunction and toxic workplaces will arise. Over time, culture is defined by fear, politics, and survival, not collaboration or growth.
Even established experts like Smith have endured toxic workplaces, but they have learned how to get out first. “Early in my career, I had a manager who used fear and uncertainty as a control tactic.
Smith explained how documenting his actions helped him empower himself and lay the foundation for self-advocacy, and ultimately helped him overcome toxicity. “As much as important as your job, it taught me that the cost of a toxic manager is not worth your salary.”
What should I do if my workplace is toxic?
“There’s a way to survive (a toxic working environment), but it shouldn’t be necessary,” Walker said. Not everyone has the means to stop, so “but there may be some people who try to make it difficult, but “it’s like staying in a room filled with smoke and not coughing,” he adds.
Walker shares that toxic environments often lead to burnout, anxiety, depression and, in some cases, PTSD. “Don’t leave that workplace unaffected either — the emotional fallout continues.”
If you find yourself working in a toxic workplace, Dawson recommends you:
- Control controls: You can’t change others, but you can control your attitude, performance, and boundaries.
- Document and communicate: Track issues and deal with complaints as well as solutions.
- Find the alignment: Attracted by people with a growth mindset that wants to enhance their culture.
- Used as a test ground: Treat the environment as leadership training. If you can positively influence the culture here, you can do it anywhere.
Toxic cultures drain energy and suppress performance, but the opposite is true. A positive work environment is fuelled by productivity, collaboration and employee satisfaction.
Common signs of a healthy work environment
A prosperous workplace doesn’t happen by chance. It is carefully constructed by implementing intentional practices that support, empower and cherish employees. Some of the most common signs you are in a healthy work environment include:
1. Open Communication
A healthy culture thrives with trust – and trust begins with communication. In a healthy work environment, information flows freely and people feel that they can speak with ideas, concerns, or feedback without fear of retaliation.
2. Growth and development opportunities
Whether through mentorship, training programs, or clear promotional routes, employees are encouraged to expand their careers.
3. Employee happiness is a priority
From flexible schedules to comprehensive profit and mental health support, healthy businesses recognize that their employees are all living outside of work.
4. Collaboration culture
Healthy teams do not view each other as competition. They work together instead. Collaboration appears to be a department sharing resources. Teammates celebrate each other’s victory, while leaders encourage ideas from everyone.
5. Employee perception
Recognizing your efforts and celebrating your achievements will continue to boost morale. In a strong company culture, perception comes from both top-down and peer.
Positive breeds positive: all hope is not lost
“The law of attraction makes negativity more attractive, but so are positives,” explains Dawson. You have the power to change the environment around you, and “how you appear every day will determine whether you feed the toxicity or start changing it.”
You can become a catalyst for changing the toxic workplace, so speak up and find allies that can come together with you.
What is USA Today Top Workplaces 2025?
Do you work for a great company? Each year, USA Today Top Workplaces is a collaboration between Energage and USA Today, ranking US organizations that excel at creating positive work environments for their employees. Employee feedback determines the winner.
In 2025, over 1,500 companies were recognized as the best workplaces. Check out our overall rankings. You can also get more insight into workplace trends and advice by checking out the links below.
