How the Road to Hellish Corporate Culture is Paved with Good Intentions?.

There are many elements that can cause a corporate culture to turn toxic, and it will only get worse day by day. But there are also many employees who will not leave that company and that same toxic corporate culture.

We can share inspirational quotes about toxic culture and the need to leave for days, and like them with hearts and support, but simply nothing will happen. Neither will the culture improve, nor will employees leave.

That's just how it is.

And 'that's just how it is' has its reasons why.

Even though it will seem more than strange, especially to younger generations, many will stay due to nostalgia. Nostalgia is an emotional reaction that occurs when an individual recalls and idealizes past experiences, often associated with feelings of warmth, belonging, and security.

In the context of the workplace, nostalgic feelings can arise from memories of times when employees felt fulfilled, valued, or when they experienced positive interpersonal relationships. Nostalgia can act as emotional comfort in situations where the current environment is not satisfying.

Additionally, nostalgia for past, better times in the workplace can be linked to several psychological concepts and biases, including the psychological concept of loss aversion. It refers to people's tendency to feel losses more strongly than gains. If employees perceive the current work environment as a “loss” compared to past experiences, they may feel averse to changing the situation.

Some will not leave the company due to status quo bias. The status quo cognitive bias describes people's tendency to prefer the current state of affairs and avoid change. People with status quo bias may avoid leaving a toxic work environment because it is what is known and preferred over the unknown (change).

I believe it is now clear to everyone that leaving will not happen. Of course, in addition to nostalgia, there are several other reasons.

• Fear of job loss: Employees may fear losing job security, especially if current economic conditions are uncertain or if they have financial obligations that make taking the risk of losing income difficult.
• Financial constraints: Individuals who depend on regular income and have financial obligations, such as loans or similar, may face limitations regarding changing jobs, even if the current work environment is undesirable and the culture is toxic.
• Sense of responsibility: Employees who feel responsible for their tasks, their team, or the company in general, often feel internal pressure to stay and try to improve the situation rather than leave it.
• Lack of alternative solutions: If an employee does not see other available job options or cannot find a similar job in the labor market, they may hesitate to leave the current toxic situation.
• Manipulation and control: In some toxic work environments, leadership may use manipulation and control to retain employees, creating a sense of helplessness and inability to change. Toxic companies may use emotional manipulation to keep employees, creating feelings of guilt, shame, or fear of leaving.
• Lack of self-confidence: People exposed to a toxic work environment may develop low self-confidence and believe they will not be able to find a better job or achieve success outside the current company.

How Toxic Corporate Culture Arises

Although I suspect that companies that have been on the market for a long time are more exposed to toxic corporate culture, I don't have concrete evidence or research for this. It's also not easy to determine in which companies corporate culture is more easily disrupted, as it depends on many factors. Corporate culture can and does vary even within the same industry.

However, there are certain factors that can increase the vulnerability of corporate culture in any company, regardless of its age.

Some of these factors are:

• Lack of clear vision and values: If a company lacks clearly defined vision and values, employees may be confused about what the company truly stands for, which can lead to the deterioration of corporate culture.
• Absence of open communication: If there is no open communication between leadership and employees or among employees themselves, misunderstandings and conflicts may arise that can harm the culture.
• Lack of transparency: A lack of transparency in decision-making and communication can create distrust among employees. If employees feel they are not sufficiently informed, it can affect their job satisfaction and engagement.
• Rapid changes in leadership: Frequent changes in leadership or a lack of stability at the highest levels can cause insecurity among employees and lead to the deterioration of corporate culture. Poor leaders also contribute to this.
• Ignoring workplace problems: If workplace problems are ignored or not addressed, it will lead to employee dissatisfaction and the deterioration of corporate culture.
• Unfair or dishonest management practices: When employees feel that management practices are unfair or dishonest, it can negatively impact corporate culture.
• Lack of recognition: If employees do not receive enough recognition or rewards for their efforts, it can reduce their motivation and self-confidence.
• Toxic leadership: Leaders who exhibit toxic characteristics, such as authoritarianism, lack of empathy, or disrespect, can create a negative work environment and contribute to a poor corporate culture.
• Poor selection and human resource management: A lack of careful employee selection and inadequate team management (primarily poor leaders) can lead to conflicts within the team, poor cooperation dynamics, and a decrease in engagement, productivity, and employee satisfaction.
• Turnover: Increased turnover is a good way to disrupt corporate culture. Employees tend to bring both good and bad experiences and adapted behaviors with them.

A toxic corporate culture is an ideal environment for developing jealousy and competitiveness among employees.

People usually wonder where jealousy comes from, but everything is very clear and ultimately simple. Jealousy is a complex emotional reaction that includes feelings of insecurity, comparison with others, and fear of losing something important, and this is precisely what a toxic environment generally encourages.

Jealousy generates gossip. It is time to ask ourselves: How so, how so?

It's easy. First, jealousy contributes to a feeling of misery or unhappiness in people for several reasons. Since I feel miserable and unhappy, of course, I will try to make others feel the same. Digging a pit is hard physical work, so gossiping is the easiest way for me.

Furthermore, jealousy will do one wonderful thing for us. A human thing. Instead of focusing on the positive aspects of our lives, we will turn to deficiencies, and very negatively, not in the sense of change. Consequently, jealousy will trigger strong negative emotions such as anger towards others, sadness due to one's own dissatisfaction, and general anxiety due to the fear of loss or lack of what others have.

The result of all this is damaged relationships, low self-confidence, lack of inner fulfillment, and decreased engagement and productivity.

It can't get any better (worse) than this.

Or it can. I forgot about competitiveness. Jealousy arises as a product of a toxic corporate culture, and competitiveness becomes a way of survival.

A toxic corporate culture creates an environment of limited “resources,” which include recognition, rewards, fair promotions… Also, a lack of support and solidarity leaves employees feeling isolated. It is also characterized by an emphasis on individual successes, and when this is coupled with a lack of transparency, everyone around us becomes a competitor. And work becomes a competition. A competition for favor, a raise, praise…

How Employees Can Generate a Toxic Culture

Maslow's hierarchy of needs can provide a useful framework for understanding and analyzing corporate culture. Abraham Maslow's hierarchy of needs includes five levels of needs, which can be linked to different aspects of corporate culture.

• Physiological Needs: Problem: A lack of adequate compensation or financial benefits can cause dissatisfaction among employees and reduce their motivation. Example: If employees receive salaries below the market average or face delays in salary payments, an unfair reward system, or bonuses, it will undoubtedly generate dissatisfaction.
• Safety Needs: Problem: A lack of clear communication or a lack of feedback on work performed, inability to make any decisions, non-recognition of success, an unclear company vision, and thus job insecurity in the long term. Example: If employees are not informed about company changes or do not receive feedback on their work, they may feel a lack of security and motivation.
• Belonging Needs: Problem: A lack of team spirit or unclear roles within the team can cause feelings of isolation and a lack of belonging. (And remote work has already sufficiently undermined our sense of belonging). Example: If the work environment does not encourage cooperation, and employees are not clearly informed about their roles and team goals, this can lead to a lack of cohesion.
• Esteem Needs (Self-Esteem): Problem: A lack of recognition or insufficient praise can lead to reduced self-confidence and employee dissatisfaction. A lack of understanding or insufficient emphasis that all individuals contribute to the company's final success. Example: If employees do not receive appropriate feedback on their work or their successes are not recognized, it will affect their self-esteem and motivation.
• Self-Actualization Needs: Problem: Inability for employees to see the bigger picture, to have a vision for the future, and to create new values. A lack of opportunities for creativity or a lack of support for developing personal and professional goals can cause frustration and a lack of motivation. Example: If employees do not have opportunities to participate in projects that encourage creativity or lack support for developing their own talents, they may feel unfulfilled and less motivated to work.

Failure to satisfy lower-level needs according to Maslow prevents us from satisfying higher levels, and thus our self-actualization is low or very low. Self-actualized people are better people; they don't pry into others' affairs, but they are also:

• Motivated and engaged,
• Creative and innovative
• Ready to take responsibility,
• Highly autonomous, and most importantly,
• Ready for learning and personal development.

Ultimately, they will have a positive impact on corporate culture, leading to improved interpersonal relationships, less stress, and fewer conflicts. All of this leads to increased job satisfaction and a greater comparative and competitive advantage for the company. Because people are the center of the universe.

What Do Others Say?

The tech industry seems to be undergoing changes, from attempts to retain employees to layoffs. The consequences of these changes are beginning to show, and recent layoffs have intensified the climate of toxicity in tech companies, according to responses from 45% of employees, a survey by TalentLMS and Culture Amp showed.

A survey of 1,000 employees working in US tech companies with toxic work cultures reveals the main causes of toxicity in the software industry, astonishing consequences for employees, and analyzes ways to deal with it and turn the situation around.

The data revealed frequent toxic behavior patterns, behaviors employees consider most damaging, and how they react to toxicity. Employees also shared their opinions on what companies can do to eliminate toxicity and start building a healthy work climate, along with who is responsible for the damaged culture.

Key findings:

• 45% of employees in the software industry working in companies with toxic work cultures plan to quit due to toxicity.
• Employees believe that leadership and senior management are largely responsible for the toxic work environment in tech companies.
• When faced with toxic behavior or situations, almost half (49%) of surveyed employees say they do nothing or say nothing.
• Recent layoffs in the tech industry have intensified the climate of toxicity in tech companies, 45% of employees agree.

Software industry employees state that the top three most important factors of a toxic work culture in their companies are:

• Expectation for employees to work overtime or weekends without additional compensation.
• Lack of transparency and communication from management and leadership.
• Lack of understanding and kindness, i.e., a lack of emotional intelligence!

The survey also reveals that 45% of employees in toxic tech companies believe that leadership is unaware of the toxicity and lives in a bubble, thinking the corporate culture is healthy.

Also, 46% of employees in the software industry suffer from burnout due to a toxic work environment.

To eliminate a toxic work culture, 43% of employees believe that training for executives and leadership would be beneficial.

Almost half of employees (47%) believe their companies will remain toxic in the future.

The research also exposes the negative consequences of a toxic work culture, including a negative impact on employees' physical and mental health. A toxic work environment causes significant losses within the organization, and employees exposed to toxic behaviors or situations at work are 35% to 55% more likely to be diagnosed with serious physical illnesses.

Ultimately, the research emphasizes that engaged leadership is key to building a new, positive work culture in tech companies.

And Where Does HR Fit In?

Achieving a pleasant corporate culture is complex. Recovering it is even harder. Why? Because it's difficult to find the root cause. Plus, it can vary from sector to sector, department to department, with some overlaps such as nontransparent communication or lack of vision.

A toxic corporate culture usually paralyzes HR professionals.

And they start with training.

And they try to satisfy people's higher-level needs according to Maslow. But the lower-level needs are not met, which is roughly like going to the theater (permanently) hungry.

And surveys. Anonymous ones. Which will say that things are bad, and we already know they are bad.

A road to ruin. Something is being done. People expect something, hope for something… but nothing can come of it. And bad gets worse.

And so, the road to a hellish corporate culture is paved with good intentions.