Is Your Company Culture Quietly Toxic? Take This Assessment to Find Out!
You’ve invested so much into building your company. Due to unconscious bias, when you are so close to something it makes it hard to see clearly. Could your workplace culture be showing signs of toxicity that you're missing? Toxicity can be costly to your business resulting in a soured reputation, unproductive and unhappy employees, and diminished bottom-line profits.
This blog post explores the ins and outs of company culture, the reason it is important and how to assess your company culture. We offer a short quiz to help you identify potential red flags in your small business and some mitigation techniques.
Understanding Company Culture
Company culture isn't just about having a company softball league, happy hours, or casual Fridays. It's the invisible force that shapes how work gets done, how decisions are made, and how people interact with an organization, no matter the size. It's reflected in everything from communication patterns to how mistakes are handled.
CPR defines company culture as “the interconnected system of actions, behaviors, and beliefs that collectively shape how an organization operates.” A company culture builds a workplace environment that is either healthy or toxic.
Why Is Company Culture Important?
Company culture is the foundation on which an organization stands, ultimately influencing business success or failure. Here are some reasons why a healthy company culture is so vital to your small business:
Unhappy employees cost businesses in the U.S. over $300 billion each year.
Companies with strong company cultures have seen a 4x increase in revenue growth and are 89% more likely to report high customer satisfaction.
The likelihood of job turnover at an organization with a healthy company culture is a mere 14%, whereas the probability of job turnover in toxic company cultures is 48%.
Having a culture that attracts top talent can increase revenue by up to 33%.
The likelihood of job turnover at an organization with a healthy company culture is a mere 14%, whereas the probability of job turnover in toxic company cultures is 48%.
What Does an Unhealthy Company Culture Look Like?
Warning Sign #1: High Turnover Rate
Impacts:
✔️ Difficulty retaining new hires after their first year
✔️ High performers suddenly quitting without another job lined up
Warning Sign #2: Poor Communication
Impacts:
✔️ Information spreading through rumors rather than official channels
✔️ Information hoarding within certain groups
✔️ Lack of context for decisions or changes
✔️ Unclear project ownership or responsibilities
✔️ Mixed messages from different leaders
✔️ Email wars or passive-aggressive communications
Warning Sign #3: Unclear Expectations
Impacts:
✔️ Constantly changing priorities without explanation
✔️Moving goalposts on projects or performance metrics
✔️ Vague or non-existent job descriptions
✔️ Inconsistent feedback on performance
✔️ Confusion about reporting structures or decision-making authority
Warning Sign #4: Burnout and Stress
Impacts:
✔️ Excessive sick days, late arrivals and early departures
✔️ Weekend or holiday work becoming the norm rather than exception
✔️ Decreased engagement in meetings and projects
✔️ Physical signs of stress (irritability, exhaustion, or apathy)
Warning Sign #5: Lack of Collaboration
Impacts:
✔️ Resistance to helping colleagues and share resources or information
✔️ Individual achievements celebrated over team successes
✔️ Projects stalling due to lack of cross-functional teamwork
✔️ Exclusive lunch groups or after-work activities that deliberately exclude others
Warning Sign #6: Favoritism
Impacts:
✔️ Different standards, rules, or treatment for different people
✔️ Promotions based on relationships rather than merit
✔️ Selective enforcement of policies
Culture Reality Assessment
Here's a startling truth: While 92% of CEOs believe they understand their company culture, only 50% of employees agree. This disconnect can be costly for your business. Ready to discover where your company really stands? Take our revealing 5-minute culture assessment below! Rate each statement from 1 (Strongly Disagree) to 5 (Strongly Agree):
When something goes wrong, our team focuses on finding solutions rather than pointing fingers. ____
Employees at all levels feel comfortable speaking up in meetings and sharing differing viewpoints. ____
Our company respects personal time and doesn't expect work communication after hours or while on vacation. ____
Team members regularly propose new ideas without fear of criticism or dismissal. ____
Promotions and advancement opportunities are based on performance, not politics. ____
Pay increases and bonuses clearly align with employee contributions and results. ____
Family members and friends in the company are held to the same standards as everyone else. ____
Conflicts are addressed promptly and resolved fairly. ____
Important information reaches all employees, not just select groups. ____
Employees trust leadership will make fair decisions, even in tough situations. ____
Scoring Guide:
40-50: Exceptional culture! Keep nurturing what works
30-39: Healthy culture with room for improvement
20-29: Warning signs present - Needs attention
Below 20: Significant cultural issues requiring immediate action
Next Steps Based on Your Score
If You Scored 40-50: Congratulations! Focus on maintaining and building upon your strong culture:
Document what's working well.
Schedule regular culture check-ins.
Stay vigilant with building a great culture as your business grows.
If You Scored 30-39: You're on the right track but have some opportunities to:
Identify specific areas scoring lowest and create an action plan for improvement.
Set specific, measurable goals for improvement.
Monitor action plan progress and adjust as needed.
Increase communication channels applicable to your business.
Schedule regular culture check-ins.
If You Scored 20-29: It's time to take action:
Consider hiring outside expertise, such as CPR, to gather anonymous employee feedback.
Develop and communicate clear company values and expectations.
Establish regular one-on-ones with all employees.
Train managers on recognizing toxic behaviors and how to address them.
Foster inclusive leadership practices such as using inclusive language, giving everyone an opportunity to share ideas, and not belittling for making mistakes.
Consider training to develop conflict resolution skills and build emotional intelligence.
Identify specific areas scoring lowest and create an action plan for improvement.
Set specific, measurable goals for improvement.
Monitor action plan progress and adjust as needed.
Increase communication channels applicable to your business.
Schedule regular culture check-ins.
Follow through on commitments to change and after conducting employee surveys.
If You Scored Below 20: Immediate intervention is needed:
Immediately invest in a professional HR consultant, such as CPR, to help:
Review all policies and procedures.
Assess leadership practices.
Create a comprehensive culture change plan.
Implement a confidential reporting system.
Gather anonymous employee feedback.
Increase transparency and communication with your team.
Ensure clear, written procedures, such as SOPs, for all major processes.
Create transparent promotion criteria in a performance management policy.
Establish fair workload distribution systems.
Identify specific areas scoring lowest and create an action plan for improvement.
Set specific, measurable goals for improvement.
Monitor action plan progress and adjust as needed.
Increase communication channels applicable to your business.
Establish regular one-on-ones with all employees.
Set clear consequences for toxic behaviors in company policies, then follow through.
Follow through on commitments to change and after conducting employee surveys.
The Bottom Line
Your company culture directly impacts your bottom line through employee retention, productivity, and customer satisfaction. A toxic culture doesn't develop overnight, and neither does a healthy one. Remember, a healthy culture isn't a destination—it's an ongoing journey that requires constant attention and intentionality. Acting now could save your company from significant problems down the road.
Want to dig deeper into your results? Let's talk about creating a culture that truly supports your business goals.
How did your company score? What surprised you about the results? Share your thoughts and experiences in the comments below.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
