What's the real cost of keeping a toxic employee?

We often focus on the stress of hiring, but the real danger lies in keeping the wrong person. Especially one who poisons your culture. Toxic behaviors like negativity or constantly stirring the pot don't just irritate, they silently erode morale, stifle creativity, and break down trust. Even if that person is technically skilled or brings in revenue, the long-term damage they cause can outweigh their contributions. As GaryVee (Gary Vaynerchuck) puts it, "Cutting toxic employees, regardless of their skills, is always the right move." He makes his point further by saying "There is no quicker way to mess everything up than to look the other way at someone who is talented and contributing, but is a bad person." (paraphrased - iykyk.)

Leadership isn't just about getting results, it's about creating an environment where people can thrive, and that means protecting your team from toxic energy. Ignoring toxicity, no matter how impressive the output, is a fast track to a broken team and a fractured culture. One bad apple can slow you down more than a weak hire ever could.

"Hiring is guessing, firing is knowing" - Gary Vaynerchuck

Hiring is a gamble, but promoting and firing should be done with clear conviction. Keeping someone just because they are good at their job, while they quietly tear down the team is a leadership failure. Culture is an ROI and if someone doesn't fit the energy and values that you are building, they need to go. You can't afford to let one toxic person make everyone else miserable. The moment you know, act fast. This isn't just business strategy, it's respect for your team's well-being and the foundation of unity an continuity in your company.

Tip: Eliminate Toxicity and Preserve Your Culture

Toxic employees can quietly corrode the culture you've worked hard to build. They may be skilled or productive, but if they drain your team's energy, undermine others, or create tension, their impact reaches far beyond performance metrics. Leadership means protecting not just productivity, but also the emotional and psychological safety of your team. Here's how to identify and handle toxicity quickly, clearly, and with professionalism:

1. Audit energy, not just output. Watch for emotional residue after interactions. Do you or others feel drained, frustrated, or anxious? That's a powerful signal. High performance means little if morale is suffering. Pay attention to the vibe, not just the numbers.
2. Get honest team feedback. Toxic employees often put on a different face around leadership. Quietly check in with team members at different levels to understand the full scope of their behavior. Ask open-ended questions like, "How's the energy been on the team lately?" or "Anything I might not be seeing?"
3. Link behavior to impact. Don't just say, "You're being negative." Show how their behavior affects projects, communication, timelines, and team dynamics. Be clear, specific, and avoid vague generalities.
4. Deliver immediate and sincere feedback. Address the issue directly and respectfully, but firmly. Document it. Let them know this isn't just a personal gripe, it's about the team and the business.
5. Give one shot at course correction. Set clear expectations and a short, defined timeline for change. Toxic behavior doesn't require months to resolve. It either shifts quickly or it doesn't.
6. Act swiftly. Don't wait too long out of fear or loyalty. Removing a toxic employee, even a "high performer" can immediately lift team morale, restore trust, and unlock growth.
7. Let them go with empathy. Ending employment doesn't have to be cruel. Be honest, fair, and professional. Help them exit with dignity, and when possible support their next step. Someone who isn't right for your team might thrive somewhere else.

Of course, it is important to distinguish between a toxic pattern and a tough season. Everyone has off days, or even off weeks. Personal stress, burnout, or overwhelm can show up at work, but that doesn't automatically make someone toxic. While no one has the right to mistreat coworkers, approaching the situation with empathy can help uncover whether it's a passing issue or a deeper problem. Address it early, listen with care, and give space for improvement, but don't ignore it altogether.

Update:

I'm thrilled to announce I am putting the final touches on my "From Reactive to Proactive: Mastering Time and Task Management" lunch and learn session crafted for small business leaders and teams. We dive into systems and practices to help you shift from chaos to control.

The first session will be limited to just 10 people to keep it focused and interactive. I'm currently scouting the perfect location. If you know a great space where lunch can be purchased (or want to host!), let me know.

A workshop will be released shortly after. Interested in bringing it to your team? Reply and let's talk!

What specific operational challenges are you currently facing that you'd love to see covered in future newsletters? Reply to this email with your questions.