The realisation that workplaces could be toxic and damaging to our health was once a hushed whisper. But now there is a cascade of evidence exposing workplaces and highlighting just how damaging toxic work environments can be to an employee’s health, wellbeing, and safety.
Three recent reports have driven home just how rampant the toxicity can be.
First, the work culture at consultancy firm EY was in the spotlight when an independent report found staff felt bullied, harassed, and exposed to prejudice, given the culture of long working hours at EY which prioritised billable hours over workers’ psychological safety.
Second, Australian Agricultural Company (AACo) was recently accused of having an ‘alpha group’ of staff who regularly bully, intimidate, and harass peers. One contractor was allegedly exposed to homophobic slurs and left to work on roofs for hours alone without communication. Another young worker was injured and left unable to walk for days after being pinned between a charging cow and a boulder.
Third, and the most tragic case of all, came from the Coroners Court of Victoria, which was fined the maximum $380,000 penalty for failing to protect staff from a toxic workplace culture that resulted in a woman’s suicide.
Employees were continually exposed to bullying, favouritism, verbal abuse, derogatory remarks, intimidation, and an invasion of privacy. Staff were taking stress leave, reporting feeling anxiety, fear, and humiliation. The office had been on notice about the risk of a workplace suicide from as far back as 2015.
That warning became a grim reality when in-house lawyer Jessica Wilby died by suicide after being diagnosed with a work-related major depressive disorder. A note found at the scene stated, “[An acting CEO] ruined me.”
Each of these examples demonstrates gross mishandling of duty of care. Australian employers are legally obligated to support their workers and create an environment where they feel valued.
Research backs up how important it is for people to feel acknowledged, accepted, and understood in the workplace. A recent study from social research company McCrindle found that half of Gen Z and 45 per cent of Gen Y want praise at work at least a couple of times a week.
The study also showed that the proportion of Gen Z want constructive feedback at least a couple of times a week (58 per cent), higher than the proportion who want praise (54 per cent).
Some may view this kind of ongoing validation as coddling, but it’s more about creating the type of culture and environment where people are constantly learning from their achievements and mistakes.
This kind of openness only emerges when people feel a sense of psychological safety where they’re able to discuss their goals, challenges, and ideas, free from judgment or potential punishment.
Ongoing communication ensures business leaders understand what their teams need to feel psychologically safe and supported at work – and these needs can change, which is why it’s crucial to regularly catch up, check in, and adapt accordingly.
Creating a culture that fosters and supports psychological safety doesn’t just trickle from the top down. It’s a collaborative process that engages people throughout the organisation.
The archaic mentality of profit over all else is unsustainable, leading to burnout, turnover, or even more devastating consequences. Business leaders need to put their people first, consider their teams’ needs and goals to drive better decision-making and shape a culture that will ensure people stick around long term.
When people feel safe and valued, they’re more comfortable bringing their whole selves to work. This type of people-centric approach helps them feel more secure in their roles, freer to take risks and learn from their mistakes. And that’s not just life-changing, it can be lifesaving.