Why Employees Stay in Toxic Workplaces
I’ve been watching the Channel 4 programme Dirty Business, which explores the experiences of whistleblowers and victims connected to England’s water companies. While the issues themselves are troubling, what really caught my attention was the behaviour of some of the employees within those organisations. It made me reflect on something I sometimes see in organisations too: why capable, thoughtful people remain in toxic workplaces, even when the environment clearly isn’t working for them.
Aside from the whistleblowers, many people seemed to defend the water companies and the environmental agency strongly, even when the situations being described appeared uncomfortable or difficult to justify. Others remained in roles that looked exhausting, demoralising, and were quite literally up to their ankles in sh*t, while some explained away practices that, from the outside, seemed ridiculous and completely unacceptable.
In many cases, it has far less to do with weakness or complacency and much more to do with the psychological and cultural dynamics that gradually develop inside organisations. Over time, people adapt to the conditions around them, often without fully realising how much those conditions have shifted. Leadership, intentionally or not, plays a significant role in shaping that environment.
Why Good Employees Stay in Toxic Workplaces
From the outside, it can be difficult to understand why someone would remain in a toxic workplace. It’s easy to assume that if an environment becomes unhealthy, people will simply choose to leave. In reality, the decision is rarely that straightforward.
Workplaces influence far more than someone’s day-to-day tasks. They shape professional identity, relationships with colleagues, financial stability, and a sense of belonging. Over time, people can become deeply connected to the organisation and the people within it. Walking away from that can feel risky and disloyal, especially when someone has invested years of effort and commitment to that organisation. This can be a particular issue for those of the Baby Boomers and Gen X generations, who value long-term service, or those who work for public services and who do not wish to lose their accumulated service and working conditions.
Because of this, many people gradually adapt to environments that are not serving them well. They focus on the parts of the job that still feel worthwhile, convince themselves that the difficult aspects are temporary, or reassure themselves that every organisation has its problems. These explanations are often sincere attempts to make sense of a situation that feels complicated rather than straightforward.
As time passes, what once felt uncomfortable can start to feel normal.
How Toxic Workplaces Become Normalised
One of the most striking things about toxic workplaces is that they rarely feel toxic all the time. Instead, the culture tends to shift slowly, almost imperceptibly, until certain behaviours and expectations become accepted as simply “the way things are done”.
The power of gradual change
Cultural shifts rarely happen overnight. More often, they occur through small adjustments that accumulate over time. Perhaps workloads increase and people stretch themselves a little further than before. Perhaps difficult conversations are avoided because everyone is under pressure. Perhaps challenging a decision begins to feel slightly uncomfortable, so it happens less frequently.
None of these moments seem big deals on their own, yet together they begin to reshape how people behave. Employees may start to justify situations that once would have concerned them, telling themselves that the organisation is under pressure, that the industry is demanding, or that the difficulties are temporary. Gradually, the boundaries of what feels acceptable shift.
A subtle psychological pull
In some ways, this dynamic can even resemble something psychologists refer to as Stockholm syndrome, where individuals develop loyalty or sympathy towards someone who holds power over them as a way of coping with the situation. Workplaces are clearly not hostage situations, but the comparison can help explain why people sometimes defend organisations that are not treating them well.
When someone’s livelihood, reputation, and professional identity are closely tied to their organisation, questioning that organisation can feel unsettling. It is often psychologically easier to rationalise what is happening than to challenge it directly. Over time, defending the organisation can start to feel like the most stable and sensible response.
Leadership Behaviours That Allow Toxic Workplaces to Develop
Most leaders do not intentionally create toxic workplaces. In fact, many would be surprised to learn that members of their team feel unable to raise concerns or speak openly about problems. Yet leadership behaviour inevitably shapes the culture people experience every day.
Signals about what is safe to say
People pay close attention to how leaders respond when ideas are questioned or concerns are raised. If curiosity and discussion are encouraged, employees quickly learn that speaking up is both safe and valued. If questions are brushed aside or uncomfortable conversations are avoided, people draw a different conclusion.
These signals are often subtle rather than dramatic. It might be a meeting where a critical question is quickly moved past, or a sense that challenging a decision could create tension. Over time, small moments like these influence how people behave. Employees begin to weigh the risks of speaking honestly against the comfort of staying quiet.
When compliance replaces challenge
Eventually, the culture can shift from open dialogue to quiet compliance. At first glance, this can appear positive, because teams may look united and aligned. People support decisions and avoid conflict, which can create an impression of strong loyalty.
However, something important may have been lost along the way. Healthy organisations depend on people being willing to question assumptions, notice emerging problems, and offer different perspectives. When that willingness fades, issues often remain hidden for much longer than they should.
The Hidden Cost of Toxic Workplaces
Remaining in a toxic workplace often creates a quiet tension between what people believe and what they feel able to say. That tension may not always be visible, but it can have a significant impact over time.
The impact on individuals
For individuals, working in an environment that conflicts with their values can gradually become draining. People may continue performing well, meeting deadlines, and supporting colleagues, yet internally they can begin to feel frustrated or uncertain about their own judgment. When someone repeatedly suppresses their concerns or instincts, it becomes harder to feel confident in their perspective.
Over time, this can lead to emotional exhaustion and a growing sense of disengagement from the work that once felt meaningful, and can impact their mental health.
The impact on organisations
Organisations are affected too. When employees stop raising concerns or offering honest feedback, problems often develop quietly in the background. Small issues that could have been addressed early may grow into larger challenges, while opportunities for improvement are missed.
Healthy organisations rely on people thinking clearly and speaking honestly. When that openness disappears, both performance and trust tend to suffer.
What Leaders Can Do to Prevent Toxic Workplaces
The most effective leaders I work with approach this very differently. Rather than relying on loyalty or compliance, they focus on creating environments where people feel able to think independently and speak openly.
In these teams, disagreement is not treated as disloyalty. Raising a concern is understood as part of doing good work and protecting the integrity of the organisation. Leaders actively invite different perspectives, recognising that honest discussion strengthens decisions rather than undermining them.
When people feel safe enough to contribute their thinking, the quality of decision-making improves. Problems are identified earlier, conversations become more constructive, and trust develops across the team.
Interestingly, these are often the workplaces where loyalty emerges most naturally. People stay not because they feel tied to the organisation, but because they feel respected and valued within it.
A Question for Leaders to Reflect On
Watching Dirty Business left me reflecting on a question that might be worth asking from time to time.
Do people around us feel able to challenge decisions, or do they feel they need to defend the organisation no matter what?
The answer can reveal a great deal about the culture we are helping to create. Leadership should never make people feel trapped within an organisation or unable to express their judgment. Leadership should be about developing people, developing leaders, so that they grow and move on to pastures new as a result of their development and new experiences. Good leaders create leaders.
At its best, leadership creates the conditions where people can think clearly, speak honestly, and contribute their best thinking; even when that thinking challenges the status quo.
If you would like help to understand your role as a leader more, then do not hesitate to book a free call with me to discuss.
