How Toxic Work Environments Occur and How to Fix Them

Workplace toxicity can manifest in many different ways and has many ugly heads. If we were to boil down all these particulars to their root cause, that root would be selfishness.

Unfortunately, rugged individualism and selfishness is baked into western culture, it is ever present, due to no one’s fault in particular, but most organizations can manage to collaborate just fine…until they can’t.

Squid Games: More than TV

Really? Squid games? Bare with me…

If you have you seen the show, feel free to skip this brief synopsis:

People gamble their lives to be the lone survivor in a serious of childlike games. The winner receives a huge pot of money for each person that dies in the games. The contestants are extremely desperate, usually in huge amounts of debt, so they willingly kill each other to build a better life for themselves.

Extreme? Yes. But it does sound familiar

How often do you hear colleagues or people in coffee shops saying something to the effect of "it's just part of the game" when describing their workplace relations/culture? How often do you see dishonesty for personal gain in the workplace? I'd say it's very likely it happens on a daily basis. But much like Squid Games, people think their lives are at stake. Let me explain

The Biology of Workplace Survival

Employment gives people the necessary income to live their desired lifestyle. If our livelihood depends on a secure income, then it's understandable how we make the emotional assumption that your life depends on that secure income.

When this security gets threatened, it will almost always trigger stress signals to the brain and a subsequent fight or flight response. This is when employees either shut down and become compliant, or fight and step on whoever they have to in order to retain their earnings. The outcome is a perpetuated cycle of dog eat dog.

This is also why when a company starts falling on hard times, the culture is the first indicator that something is amiss. When people feel threatened, they become insular and individualistic.

The Counterproductive Nature of Toxic Individualism

The irony is that this behaviour is completely counterproductive. In order to maintain productivity, teamwork is essential, and in order to have productive teamwork, we need collaboration, which is only possible when people feel they belong; therefore, not insular.

So, we must rewire our brains, and leaders must not let this selfishness seep into their organizations, no matter how tempting it may be, no matter how much is at stake. However this is easier said than done

How Individualism Runs Our Systems

The western culture is built on capitalistic values that lifted majority of the world out of extreme poverty. Not bad!

These values, boiled down to their most basic components, are

  1. Produce Freely, and

  2. Consume Freely.

Produce the things that people want and are willing pay for. Then, you can earn money to consume the things that you want, which have been produced by other people. It is a mutually beneficial symbiotic relationship, everyone wins!

When Systems Get Corrupted

If people want more, they need to produce more, meaning they have to beat the competition. If they want more badly enough, they will play unfairly. The result is rugged, unforgiving individualism.

We can define this type of individualism simply as greed. People will step over, even put themselves and others at risk to get ahead, much like Squid Games. This might even be entertaining for those at the top, much like another favourite dystopian fiction, “The Hunger Games.”

How Organizations Play Along with Toxicity

These problematic behaviours don't exist in a vacuum. Many organizational structures and reward systems actively encourage and reinforce toxic individualism. Consider the standard corporate ladder with its limited positions at the top. This creates an inherently competitive environment where employees must outperform not just external competitors but their own colleagues.

Performance review systems that rank employees against each other (like stack ranking or forced distribution methods) pit team members against one another. When only 10% of a team can receive the highest rating—regardless of how well everyone performed—the incentive to undermine colleagues becomes built into the system itself. What manager would give credit to one of their employees when they can just take the credit themselves and receive a boost in status and ranking? A selfish one, that’s who.

Bonus structures tied to individual rather than team performance, public recognition that highlights individual stars rather than collaborative achievements, and promotion processes that reward those who claim the most credit all contribute to cultivating toxic workplace behaviours. These systems incentivize anyone who wants to get ahead to adopt these harmful tactics.

Practical Strategies for Individuals

Individuals don't have to be passive participants in toxic workplace cultures. Here are some strategies to resist contributing to these dynamics while still building a successful career:

  1. Start with the man (or woman) in the mirror - Nothing can change until we change. Develop self awareness. How often do you let fear interfere with your working relationships? Are there areas where you need to stand up for yourself? Or are there areas where you could afford to be more compassionate? What’s behind the mask?

  2. Build coalitions instead of competing - Rather than viewing peers as competition, actively seek opportunities to partner with colleagues on projects. Success achieved through collaboration often has greater visibility and impact than solo achievements.

  3. Practice transparent communication - When information is treated as currency or power, it breeds mistrust. Share relevant information openly with team members and create spaces for honest dialogue.

  4. Redefine what success looks like - Define success for yourself. Include how you've helped others grow, how you've contributed to team cohesion, and how you've aligned your work with your values—not just promotions or raises.

  5. Be the culture you want to see - Model the behaviours you wish were more common. Emotional intelligence, vulnerability, and prioritizing collective success and self awareness over individual glory can be contagious.

  6. Create boundaries around toxic expectations - Learn to say no to assignments or projects that require unethical behaviour or would force you to compromise your values. Frame your response in terms of what would better serve the organization's long-term interests.

  7. Find allies across hierarchical levels - Build relationships with like-minded individuals at all levels who share your vision for a healthier workplace culture. These connections provide support and can amplify efforts to create change.

At the end of the day, what is more important, your integrity, or your livelihood? That is a question I cannot answer for you. With some self-discovery and exploration, you might find you don't have to choose between the two as often as you think.