What are the negative effects of toxic leadership?

Toxic leadership has significant adverse consequences for an organization, with higher turnover rates being one of the most prominent effects. When leaders exhibit toxic behaviors, such as bullying, micromanagement, or lack of support, employees often feel undervalued and demoralized. This toxic environment can lead to dissatisfaction, prompting employees to seek opportunities elsewhere. Consequently, organizations experience increased turnover, which can be costly and disruptive, as it involves not only the expenses tied to recruiting and training new staff but also the loss of institutional knowledge and team cohesion.

In contrast, positive outcomes such as increased employee engagement, enhanced workplace culture, and improved team relationships are typically associated with supportive and effective leadership. Toxic leadership undermines these beneficial aspects, thereby highlighting the importance of healthy leadership practices for retaining talent and fostering a productive work environment.