How does poor workplace culture impact productivity?

Workplace culture is more than perks and social events. It’s the shared behaviours, values, and everyday interactions that shape how people experience their jobs. A positive culture inspires trust, collaboration, and innovation. A poor one, however, does the opposite, by lowering morale, fueling disengagement, and ultimately dragging down workplace productivity.

In fact, research shows that 75% of employees have experienced a toxic workplace culture at some point. When left unaddressed, cultural issues don’t just affect individuals – they ripple across the organisation, increasing turnover, absence, and inefficiency.

What does poor workplace culture look like?

While culture can be complex, the signs of a poor one are often clear. Based on research, here are some of the most common cultural red flags:

Leadership misalignment – When leaders don’t model company values or fail to communicate effectively, employees quickly lose trust and motivation.
Lack of respect and psychological safety – Environments where ideas are dismissed or employees feel unheard stifle creativity and trust.
Silos and poor collaboration – Teams working in isolation exacerbate inefficiency and confusion.
Failure to recognise contributions – Without appreciation or reward employees can quickly become disengaged.
Unreasonable workloads and expectations – Excessive pressure leads to stress, burnout, and increased sickness absence.
Tolerated toxic behaviours – Gossip, bullying, or micromanagement left unchecked quickly undermine morale.
Limited growth opportunities – A lack of career development overlooks any potential for progression and drives turnover.
Unsafe or uninspiring work environments – Poor physical or digital workspaces reduce wellbeing and performance.

Each of these issues chip away at employee wellbeing and engagement. Together, they create a workplace where people might resort to doing the minimum to get by, before potentially leaving altogether.

How can organisations start changing their workplace culture to increase productivity?

Changing culture is an ongoing process that requires alignment across leadership, HR, and employees. While every organisation’s journey is different, some first steps might include:

Listening first – Run engagement or pulse surveys, stay interviews, and open forums to uncover what employees really think and feel.
Equipping leaders – Train managers to role model values, communicate effectively, and support their teams with empathy.
Addressing behaviours head-on – Don’t ignore toxicity. Create clear policies, hold people accountable, and celebrate positive behaviours.
Recognising and rewarding contributions – Build a culture of appreciation that motivates people to do their best work.

Even small shifts in leadership behaviour, communication, and recognition can make a meaningful difference. Over time, these changes lay the foundation for a healthier, more engaged, and more productive workforce.

The bigger picture

Tackling poor workplace culture is one of the most effective levers HR and business leaders have to boost productivity in the workplace. While it isn’t easy, the return of higher engagement, stronger retention, and improved productivity is worth the effort.

For a deeper dive into the ten drivers of poor workplace culture and practical steps you can take to turn things around, download our full eBook below.