The mental health toll of a toxic culture – and how to fix it
By Eileen Donnelly
We spend a huge chunk of our lives at work - and our workplace has a big impact on how we feel, think and function day to day.
Managers in particular exert a huge influence over our mental health. A 2023 report from The Workforce Institute at UKG found that 69% of people say their manager has more impact on their mental health than their doctor or therapist - and just as much as their partner or spouse.
When things are good, work can bring us structure, purpose, and human connection. But when our working environment isn’t good, it can seriously affect our mental health, sometimes in ways we don’t even notice until we’ve - sometimes literally - hit a wall.
What does a toxic workplace look like?
The term ‘toxic workplace’ gets thrown around quite a lot, but what does it actually mean?
A workplace that’s ‘toxic’ isn’t just about one bad manager or the occasional difficult colleague. A toxic workplace is essentially one where unhealthy behaviour is normalised - whether that’s through constant pressure to be ‘on’ 24/7, poor communication, exclusive cliques, gossiping, gaslighting, bullying, discrimination, being made to feel as if you're never doing enough or leaving no room for mistakes. But it can also be more subtle: not being given a voice, being shut out of decisions, a lack of clarity about your role or responsibilities, or never being properly recognised for the effort you put in.
Why a toxic workplace is bad for business
In a toxic work environment, stress and tension are always bubbling under the surface. People stop trusting each other, feel reluctant to speak up and voice concerns or ask questions and start counting down the minutes until they can go home. Unsurprisingly, workplaces like this also struggle with high turnover, low morale, and poor performance. People check out mentally before they walk out physically. Productivity drops, innovation dies, and people start working in silos.
Eventually, inevitably, people will leave. Large-scale research by MIT Sloan Management Review found that a toxic culture is by far the strongest predictor of industry-adjusted attrition and is 10 times more important than compensation in predicting turnover.
For those that remain in the toxic environment, chronic stress and anxiety impair concentration and decision-making, increasing the likelihood of errors and oversights. Toxic cultures often breed gossip, blame, and competition, eroding trust between colleagues. When trust disappears, the consequences are far-reaching – people stop collaborating, they stop contributing ideas and avoid asking for help, all of which we know are essential for a healthy, high-performing workplace. Crucially, too, they are far less likely to highlight any problems or risks to the business – and the consequences can be catastrophic.
In a world where the battle for talent is becoming ever more fierce, toxic workplaces can also have serious repercussions for hiring.
Research by Culture Shift found that reports of a toxic work culture would deter two-thirds of potential applicants from accepting a job with a company, with nearly half of respondents saying they would not even bother to apply to a company with negative reviews of its working culture in the first place.
Word of a toxic environment spreads quickly through online reviews, social media, or industry chatter. And as it’s often the most capable, self-aware employees who leave first, as well as finding it hard to hire, companies can find that the talent they already have is getting ready to head out of the door.
How a toxic workplace affects our mental health
Constant stress
When every day feels like a battle, our body stays in a state of high alert. We might notice it in small ways - tense shoulders, poor sleep, irritability - but over time, this kind of stress wears us down and can lead to anxiety, depression or physical health issues.
Low self-esteem
If we are constantly criticised or made to feel invisible, it chips away at our confidence. We start doubting ourselves, even outside of work. Our performance drops, we don’t put forward ideas and suggestions and we withdraw from our colleagues. Toxic environments make people feel like they’re the problem - when in reality it’s the culture that’s broken.
Burnout
This isn’t just being tired. It’s feeling completely drained, emotionally and mentally, like a sponge from which every last drop of water has been wrung. We stop caring, disconnect, and even small tasks feel impossible. Burnout is common in toxic settings where people are expected to keep giving, while getting little to no support in return.
Isolation
In a workplace where no one’s really listening or connecting, it’s easy to feel alone. Emails go un-answered, questions are ignored, and concerns are minimised or disregarded entirely. Without meaningful human connections, we can be surrounded by people every day but still feel like we’re on our own, and this sense of profound isolation can lead to serious mental health issues.
Exclusion of remote workers
For remote workers, a toxic workplace culture can be even more isolating and, paradoxically perhaps, harder to escape. When you're not physically present, it's even easier to be left out of conversations, overlooked for opportunities, or excluded from decisions - and these patterns often go unnoticed or unaddressed by managers. Without regular face-to-face interaction, small issues can snowball, and the emotional impact of being sidelined or unsupported can be magnified.
Lack of trust
We all know that if the culture doesn’t support openness around mental health, people end up struggling in silence. They don’t speak up or ask questions out of fear of judgement, of being seen as weak, or of putting their job at risk. That silence feeds a toxic culture.
But almost worse is the kind of culture that claims to encourage people to open about their mental health, only to shut down, criticise or exclude them if they do. Hypocrisy is one of the most damaging traits in a toxic workplace because it breeds mistrust and cynicism. When leaders talk about values like respect, wellbeing, or collaboration - but behave in ways that blatantly contradict those messages - it sends a clear signal that the words are just for show.
People notice when managers preach balance but consistently reward overwork or promote an "open culture" while shutting down honest feedback. This gap between what’s said and what’s done creates confusion, frustration, and disillusionment. Over time, employees stop believing anything will change, disengage, and focus only on self-preservation. Hypocrisy erodes credibility faster than almost anything else - and once trust and loyalty are lost, they are well-nigh impossible to regain.
It doesn’t stay at work
The impact of a toxic workplace doesn’t stay at work. It often shows up in ways we don’t immediately connect to our job. We might find ourselves snapping at our family, feeling too drained to enjoy time with friends, or lying awake at night replaying conversations from the day. Over time, the emotional toll seeps into our routines, our confidence, and even our identity. We start to question whether it’s actually us that’s the problem, whether we’re really cut out for the work, or whether things will ever get better. The stress can become so embedded in our daily life that weekends stop feeling like a break and holidays barely scratch the surface. Toxic workplaces don’t just take up our time. They take up our headspace and affect how we show up in every part of our life.
How do you fix a toxic culture?
Changing a toxic culture isn’t about performative gestures, quick fixes or surface-level perks. It takes honest leadership, better communication, genuine accountability, and a real commitment to creating a safe, respectful environment that supports employees’ mental health and wellbeing. That means:
Leaders who listen, are accountable, and lead by example
The tone of any culture is set at the top. When leaders model integrity, humility, and openness, they create a ripple effect across the organisation. That means owning up to mistakes publicly, welcoming feedback (even when it’s uncomfortable), and showing consistency between words and actions. Leadership shouldn’t be about power or control - it’s about building trust, showing vulnerability, and earning credibility through actions, not titles.
What this looks like in practice: Regular, unfiltered Q&A sessions; leaders acknowledging mistakes; performance reviews that include feedback on leadership behaviour, not just outcomes.
Clear boundaries around workload and expectations
In toxic cultures, overwork is often glamourised and burnout goes unchecked. Reversing this means respecting people’s time, setting achievable goals, and not expecting 24/7 availability. Workload planning should be thoughtful, and employees must feel empowered to say “no” or flag when they’re at capacity, without fear of judgment or retribution.
What this looks like in practice: Clear norms around working hours, realistic timelines, and open conversations about workload capacity at the planning stage.
Making it safe to speak up – and actually doing something
Psychological safety is essential for healthy working culture. Employees need to feel confident they can express concerns, challenge the status quo, or report bad behaviour without becoming targets themselves. Just as importantly, when people do speak up, there must be visible follow-through. Employee trust is eroded when feedback disappears into a black hole or is met with denial or defensiveness.
What this looks like in practice: Anonymous reporting channels, consistent follow-ups, and public examples of leaders responding constructively to feedback.
Placing a value on employee wellbeing
Wellbeing isn’t a poster on the wall or an occasional yoga class. It should be embedded into every aspect of how the organisation operates - from flexible work arrangements and access to mental health resources, to training managers on how to support struggling team members. People tend to do their best work when they feel seen and cared for.
What this looks like in practice: Mental health days, employee assistance programmes, inclusive health benefits, and managers trained in trauma-informed leadership.
Ensuring support Is readily available and accessible
Toxic cultures often leave people feeling isolated or unsupported. Rebuilding that trust involves ensuring all employees. regardless of role, location, or background, can easily access the help they need. Support systems must be inclusive, easy to navigate, and well-communicated.
What this looks like in practice: A central resource hub, well-publicised HR contacts, mental health first-aiders (MHFAs) and mentorship opportunities.
Rewarding collaboration, not just individual performance
A culture that pits people against each other breeds dysfunction. Instead of just recognising your “star performers,” healthy cultures elevate those who contribute to team success, support others, and help to raise the collective bar. By celebrating collaboration, organisations can reduce internal competition and build a more connected and more resilient workforce.
What this looks like in practice: Performance criteria that include teamwork, peer nominations, and recognition for behind-the-scenes contributions.
Gathering the data
A crucial step for identifying the underlying causes of a toxic workplace is to gather clear data. This could include 360-degree feedback, anonymous surveys, exit interviews and documenting patterns of behaviour to identify those who repeatedly damage morale, bully peers, or ignore accountability.
Once you’ve got the data, it’s important to identify the problem and be prepared to take robust and transparent action – and this may well involve identifying specific individuals who are creating a toxic environment and taking disciplinary action or removing them altogether. Senior staff and high performers with toxic attitudes can be the most damaging of all, as they are often seen to be untouchable – so don’t sanction those lower down the hierarchy while allowing your star performers or board members to get away with the same poor conduct. The MIT Sloan Review found that leadership consistently emerged as the best predictor of a toxic culture, emphasising the fact that leaders cannot improve corporate culture unless they are willing to hold themselves and their colleagues accountable for toxic conduct.
If your workplace culture is doing more harm than good, it’s time to take action.
At Ripple&Co, we help organisations build environments where people feel safe, supported, and able to thrive. Get in touch with us today to learn more about how we can help you shift from toxic to transformative.