If this situation sounds familiar, that’s probably because it is. A 2025 report by iHire on toxic workplace trends said three-quarters of employees have experienced a toxic workplace, and most employees aren’t afraid to move on from these types of environments. In fact, more than half of surveyed employees reported quitting a job because of a toxic workplace, the report said.
No matter whether you’ve worked with an employee who demonstrated one or several toxic traits, one thing remains consistent: Toxic employees are bad for business. Left unchecked, they can derail teamwork, drive away talent and erode a company’s culture from the inside out.
Keep reading for five tips on how to deal with toxic employees in the workplace.
1. Know the Differences Between a Toxic Employee versus a Scapegoat
Before you even start dealing with a toxic employee, it’s important to understand the characteristics of one. If you do a quick Google search, you’ll find handfuls of different blogs each touting their own definition, but in a nutshell, they all say the same thing: A toxic employee is someone who persistently acts in a way that hurts the company, their peers or even clients without having to take accountability for their actions.
If you know what types of characteristics make up a toxic employee, you may also be able to identify the traits that don’t. It’s possible you may just have an employee who has been targeted as a scapegoat. Investigate whether you have a toxic employee on your hands, or instead, someone who is struggling in the workplace or with shortcomings in their training, says Lauren Howard, Chief Executive Officer of LBee Health, a mental health practice providing support services for those coping with or recovering from toxic work environments and burnout.
A toxic employee is someone who persistently acts in a way that hurts the company, their peers or even clients without having to take accountability for their actions.
It’s important, she says, to start by giving everyone the benefit of the doubt.
“We could walk away with two totally different perceptions of that conversation we just had, and both of us are right,” Howard says. “Everybody shows up with a different brain and perception, and sometimes that means the information you’re given does not align with somebody else’s perception, but it doesn’t mean the other person is lying.”
2. Document, Document, Document
If you’re responsible for investigating a complaint about a potentially toxic employee, documenting every interaction with all parties is imperative. Kim Williams, spokesperson for End Workplace Abuse, an organization lobbying for workplace protection against bullying and abuse, recommends keeping two separate files: one for the employee under investigation and one for yourself. This is especially crucial if you are dealing with a protected employee who may be in a position of power or influence.
