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Toxic Workplace Warning Signs: How Leaders Can Build a Healthier Team

Maintaining a positive workplace culture isn’t just “nice to have”—it’s critical for employee wellbeing and organisational success. In Australia and across the Asia-Pacific region, businesses must actively eliminate or minimise psychosocial risks that could harm mental health.

What is Toxic Behaviour?

Toxic behaviour, or a psychosocial hazard, refers to anything that could negatively impact mental health. Common examples are:

  • Bullying, harassment, or workplace conflict
  • Poor support, unclear roles, or excessive job demands
  • Violence, aggression, or poor organisational change management
  • Remote or isolating work environments

Source: Safe Work Australia

Why Address Toxicity?

Research by SEEK shows that toxic workplaces are a widespread concern in both Australia and the broader Asia-Pacific region. Employees in these environments often report negative impacts on mental health. Toxic cultures can lower productivity, morale, and creativity, increase turnover, and harm company reputation.

“A toxic team can create a stressful and unhealthy environment, leading to decreased job satisfaction and increased absenteeism,” says Dr. Elizabeth Clancy, senior consultant psychologist at Transitioning Well.

Signs Your Team May Be Toxic

  • Low engagement or participation in discussions
  • Rising absenteeism or presenteeism
  • Reluctance to attend social events or contribute ideas
  • Noticeable changes in behaviour among team members

Strategies for Leaders

  • Open communication: Encourage honest dialogue to resolve issues
  • Conflict resolution: Address disagreements promptly and fairly
  • Team-building: Promote positive interactions through exercises and activities
  • Leadership training: Equip managers to create supportive environments

Protecting Yourself and Your Team

  • Identify and document harmful behaviours
  • Set clear boundaries and consistently enforce standards
  • Seek guidance from HR, mentors, or external consultants
  • Advocate for a positive, transparent workplace culture

“Communication, clarity and consistency are key. Your team needs to know you have their back and understand the standards expected,” says Brigit Steindl, senior consultant with The HR People.

Get Support

If internal support is limited, external HR consultants or peer networks can provide guidance. Leaders in Australia and the Asia-Pacific region must prioritise wellbeing to prevent further damage and foster high performance.

Source: Research conducted by Nature for SEEK, January 2026

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