Working in a toxic workplace, especially in a leadership role, can be extremely difficult. For CFOs and finance leaders, leaving a toxic environment may be only a matter of leveraging networks and lining up another position. However, for other employees, some of whom are building work experience or are less financially flexible to leave a position, handling a toxic work environment can be a much more intricate and delicate process.
According to new data from INTOO and Workplace Intelligence, more than a third (35%) of the employees surveyed said they would accept lower pay for a job free of workplace toxicity, presumably to avoid the process of navigating a toxic environment altogether.
How a workplace becomes toxic is heavily impacted by how leaders conduct themselves. Identified by surveyors, in no particular order, are factors such as favoritism, office politics, gossip or rumors, ignoring feedback, and disregarding work-life balance. "Cutthroat" or aggressive management styles, which younger generations have indicated they will not tolerate, are also factors.
When these issues arise, engagement and productivity take a significant hit. A large majority (84%) of employees said workplace toxicity is detrimental to their engagement at work. Seventy-nine percent said such an environment has hampered their productivity.
This lack of engagement and productivity also leads to the improper use of sick time. Nearly half (44%) of employees said they’ve used vacation or personal time to avoid a toxic work environment and 33% said they’ve faked being sick to avoid their work environment.
Nearly half of employees (46%) also say they aren’t getting a fair shot due to favoritism from leadership. However, less than a quarter (24%) said growth opportunities would reduce toxicity, making career trajectory less of a factor. Having their grievances heard is more important, with over half of those who experienced toxicity saying they were ignored (52%) and their employers did nothing about it (54%).
Address and fix toxic company culture
Creating a positive company culture, something CFOs have an increasing role in, is an important part of ensuring the workplace is free of inhibitors to engagement and productivity. Researchers suggest companies approach with a balance of humility and toughness on toxicity for successful outcomes.
While upskilling and recognition for good work are valued, discipline for employees at all levels who break rules, penalties for underperformance, and transparency are also positive influences.
The approaches to improving toxic environments vary. While a large minority say companies have created career growth opportunities, ensured learning opportunities, and implemented diversity, equity, and inclusion programs (46% for each), communication improvements were also important factors. Employee feedback (45%), work-life balance procedures and boundaries (40%), and team-building activities (40%) were also tactics to improve. Holding leadership more accountable was the least chosen response.
How CFOs handle toxicity
In a recent poll on CFO’s LinkedIn page, we asked our followers how they’ve handled a toxic work environment. Out of the 300 responses we received, mostly from finance leaders and CFOs, more than half (54%) ended up leaving after putting in some effort to make a change in the toxic environment.
More than a fifth (22%) said they stuck it out and initiated change, indicating the possibility for CFOs to step in and make corrections to a toxic environment that they’ve either stepped into as part of a new role or have watched grow around them in their existing one.
Research findings are based on a survey conducted by INTOO and Workplace Intelligence between November 19 – December 2, 2023. In total, 1,600 full-time, U.S.-based employees completed the survey, including 800 HR leaders and 800 employees. Survey results were published on April 23, 2024.