The Top 15 Signs of Bad Company Culture (And How to Fix It)

2025 saw a surprising upward creep in employee happiness—one that left research teams baffled and employers feeling tentative relief. But a stalled labor market reminds us that employee happiness isn’t all it may seem—and it’s perhaps more critical than ever to focus on building a workplace culture where everyone thrives.

For businesses and HR professionals, adopting a people-first approach is crucial to improving company culture. But when your employees don’t feel valued, supported, or engaged, this becomes an uphill battle.

In 2024, 84% of employees reported being somewhat satisfied with their jobs. This meant that fewer employees hit the job market than in recent years.

However, just because employees aren’t leaving in droves, companies should always prioritize boosting retention. Otherwise, you risk employee dissatisfaction impacting the bottom line, including low morale, decreased productivity, absenteeism, and costly turnovers.

Here’s how to spot the warning signs of bad company culture, along with practical strategies for turning things around this year.

Why does company culture matter?

The bottom line? Employee engagement drives growth. And employees are more likely to be engaged at work when the environment is a positive one. How you treat your team, how they treat each other, and how your business is perceived all play a part in building a positive work culture.

Failure to foster ethics and core values at your company could result in a bad company culture that leads to declining performance across your teams. Why? Engaged employees are simply more likely to do the right thing. But strong workplace ethics are set from above.

So, what's company culture all about? It's like the character of your workplace, made up of the things everyone believes in, the way they act, and what they value. But if your company values aren’t lived out at the top, they’re unlikely to take root amongst the rest of your staff.

What is a “toxic” workplace?

A toxic workplace is an environment where negative behaviors—such as bullying, harassment, ostracism, and hostility—permeate the workspace and create a harmful atmosphere. These behaviors foster a disruptive culture of doubt and aggression, resulting in strained relationships, high levels of stress, a lack of trust, and poor productivity or performance.

Rather than the behavior of one or two individuals, workplace toxicity is systemic. Poor management practices and unhealthy work conditions can trickle down and create a ripple effect throughout an organization. Failure to resolve or identify toxic workplace signs can cause employees to feel physically and mentally unsafe.

Employees in a toxic workplace may:

• Have trouble sleeping
• Feel nauseous or burnt out
• Experience anxiety before or during work
• Have little to no motivation or a lack of desire to perform.

The top 15 signs of bad company culture

The sooner you notice negative cultural trends, the sooner you can right the ship. Here are some common red flags to look out for:

1. Core values aren’t defined

When a company’s core values are unclear or nonexistent, it creates confusion among employees about the organization’s identity and principles. Employees may not understand what’s expected of them or how to work towards the company’s mission. This ambiguity can lead to different people or departments making contradicting decisions, hindering the development of a strong company culture.

2. Managers don’t follow core values

Simply put, having company values on paper isn't enough—they must be embodied by your people leaders. Employees can become disheartened when leadership has a “do as I say, not as I do” mentality. This lack of accountability can lower morale and may drive employees to also disregard the company’s core values, allowing toxic workplace signs to fester and spread.

3. Candidates aren’t accepting job offers

Interviews are a two-way street, with candidates assessing not only the role but also the workplace environment and growth opportunities. They may turn down a job for various reasons:

• Lack of transparency during the hiring process
• Salary range below the industry average
• Limited employee benefits
• Misalignment between their working style and their potential supervisor’s management style
• Ambiguous company values

If prospective hires frequently decline job offers, there’s likely a disconnect between the company’s projected image and the actual work culture.

4. New hires don’t stay long

Companies have just 44 days to make a good first impression on new hires, and signs of a bad company culture could push them out the door. According to a recent survey by Qualtrics, 39% of employees who have been in their jobs for six months are already planning a quick exit, as they tend to have lower levels of engagement, wellbeing, and inclusion compared to more tenured employees.

5. Employees have poor work-life balance

Flexible hours have become a more common perk thanks to the rise of remote work. However, if employees are consistently racking up overtime because of an expectation or necessity to work during lunch breaks, nights, or weekends just to keep up with their workload, it’s a recipe for disengagement and employee burnout.

6. Absentee rates are high

Inevitably, employees will occasionally miss work. From feeling ill to dealing with family emergencies, life happens. However, frequent tardiness or absences may indicate toxic workplace signs. Underlying issues, such as poor management or working conditions, can leave employees feeling less engaged and motivated to contribute to the company’s success.

Aside from difficulty finding coverage for absences, there can be harmful long-term consequences, such as distrust between employees and managers, and lower customer satisfaction, damaging the employer brand.

7. Employees don’t feel appreciated

One of the biggest signs of bad company culture is a lack of acknowledgement. Failing to acknowledge or reward top performers for a job well done can lead to decreased motivation, productivity, and loyalty. Employees who feel undervalued can also cause high turnover. In fact, a recent Gallup survey reports employees who don’t feel adequately recognized are twice as likely to say they’ll quit within the next year.

8. Gossip runs rampant

It’s a red flag when gossip is common in the workplace. Rumors and negative talk can quickly erode trust, damage relationships, and create hostile work environments. After all, it would be understandably challenging for employees to focus on their work if they’re constantly anxious about colleagues whispering behind their backs.

9. Employee Net Promoter Scores^® are low

Your Employee Net Promoter Score (eNPS*) is the difference between the number of people who would recommend your company as a great place to work and those who wouldn’t. A low eNPS indicates that many employees are unsatisfied and potentially looking to leave. If your score is on the low end, this could point to signs of bad company culture.

10. High-performing employees don’t stick around

High turnover among key employees or leaders is a cause for concern, as it suggests they didn’t see a future with the company. What’s more, the resulting skill gaps can have negative ripple effects on productivity, team morale, and the company’s overall performance.

11. People play the blame game

We all make mistakes—it’s part of being human. However, a prevailing “blame game” among staff and employers is a clear toxic workplace sign. When employers expect always-on excellence, it encourages an aggressive, dog-eat-dog culture. Teammates are susceptible to throwing each other under the bus, and employees can feel that there’s no room for error and no room for growth.

12. Teams are cliquey and hostile

A toxic workplace can incite an “us versus them” mentality, creating division and exclusive social groups between teams. Employees outside of these groups may feel marginalized and ignored, which can lead to disengagement and lower job satisfaction.

Managers who are part of these cliques may give preferential treatment, such as more recognition, which undermines meritocracy and creates resentment among other employees. This can create a culture of hostility, leading to bullying or harassment.

13. Staff are unethical or unprofessional

Unprofessional or unethical staff are a significant sign of bad company culture and are often a trickle-down effect from higher up. The behavior of managers and executives has a profound influence on employee behavior. If leaders are rude, act unethically, dismiss concerns, or fail to enforce standards, this sends a message to the rest of the company that bad behavior is acceptable. This erodes trust among colleagues, leading to burnout and disengagement.

14. Morale is low

Low morale is a strong sign of bad company culture. While it can sometimes stem from specific issues like workload, its persistence often points to deeper issues within the organization’s culture, such as:

• Poor leadership
• Lack of trust and transparency
• Unhealthy competition
• Poor work-life balance
• A disconnect between values and actual practices.

15. Communication is poor

Communication is key, and this starts from the top down. When leaders regularly communicate, employees are encouraged to do the same. But if staff feel like they don’t have a space to communicate or express themselves, that’s a huge red flag.

Poor communication from higher up could be a symptom of poor leadership. On the flipside, a lack of communication from employees could indicate a breakdown of trust. This creates a cycle of dysfunction—from increased mistakes and unresolved conflicts to isolated employees.

How to build a positive workplace culture

On the bright side, bad company culture can be improved. While putting a band-aid on the problem can be tempting, the key to creating lasting change is identifying the underlying issues and taking strategic action. Here are some ways to improve workplace culture and get back on the right track:

Lead by example

Transforming company culture starts from the top. Once company values have been defined, managers and leadership should set an example for employees to follow. For instance, one of our values here at BambooHR is Enjoy Quality of Life.

For companies with a similar value, leadership can model healthy work-life balance by encouraging hybrid or remote work, refraining from sending emails during non-working hours, and taking paid time off to recharge and encouraging employees to do the same.

Create open communication channels

Often, issues like high absenteeism and turnover result from employees’ pent-up frustration. Instead of scrambling to figure out what went wrong, take a proactive approach.

Encourage transparency and provide multiple avenues for employees to voice their concerns, ideas, and feedback without fear of retaliation. For instance, each manager could host weekly team meetings, one-on-ones, and office hours to address any issues early on. With an open-door policy, employees will feel heard, which is the first step to building a positive work culture.

Additionally, don’t forget to communicate promptly and openly with prospective employees throughout the hiring process to improve your job offer acceptance rate. Setting clear and correct expectations can also reduce new-hire turnover as candidates’ on-the-job experience lines up with what they were told to expect during the interview process.

Encourage continuous learning

Investing in professional development opportunities shows candidates, new hires, and more tenured employees that your organization is committed to their growth and success. Offerings can include (but don’t have to be limited to) traditional methods like workshops or conferences.

Here are some other engaging options to consider:

• Hackathons or innovation days: Host events where employees can work together on solving specific challenges, brainstorming fresh ideas, or building prototypes.
• Lunch and learns: In these relaxed settings, employees can learn from thought leaders in your industry about top trends and best practices. Alternatively, lunch and learns can be an opportunity for peer-to-peer learning about different company experiences and skills.
• Professional development time: Allow employees to spend a percentage of their work time on efforts they think would benefit the company. For instance, Google’s “20% time” policy has led to several innovative breakthroughs and revenue-generating products like Gmail and Google Earth.

Recognize and reward achievement

Employee appreciation can be a low-cost yet highly impactful strategy for boosting morale, engagement, and retention. Simply put, people want to know that their efforts are valued. Small gestures can go a long way to improving company culture. However, it’s key to personalize the acknowledgment.

For instance, some people might love a public shoutout, while others might be more comfortable with a private message. As for rewards, have new hires fill out a “get to know me” survey to find out their favorite snack, store, activity, etc. Then, when the time comes to celebrate their achievements, surprise them with something that proves you’ve been paying attention, like a gourmet gift basket or gift card to a favorite store.

Measure workplace ethics successes

When people start adhering to the value of always trying to do what’s right, you’ll feel it in everything you do. From the way people communicate to the energy they bring to work. But that doesn’t mean the work stops there.

Clearly defined workplace goals and values are incredibly important. But routinely measuring organizational and cultural successes is also key to ensuring you know what’s working and how. That starts with SMART, stated goals.

Goals should be:

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

Still, sometimes that’s easier said than done. What’s most important is that employees have what they need to reach their full potential. This, in turn, can be the start of improving company culture. But you’ll want to implement these strategies as well:

Survey your teams

Stats can ensure your journey to a better workplace culture and ethics is grounded in reality.

If your company culture is suffering from problems, data could help you understand the scale of the challenge. When things improve, a graph can help you showcase your successes.

The trick? Run surveys early and repeat them regularly. You’ll want to ask things like:

• How do employees feel about the organization?
• How much pride do employees take in their work?
• Do employees feel like they can share concerns without fear of retaliation?

Don’t forget pulse checks

There are lots of soft signals to stay aware of, too. Combined with surveys, these can provide a more comprehensive picture of your workplace ethics.

You might record things like:

• Customer complaints
• Delays
• Regulation breaches
• Employee grievances
• Industry awards
• Positive reviews
• Employee office attendance
• Social event engagement

When things go well, you’ll see happier people helping each other, building a positive and inspiring work culture. You’ll have fewer complaints and issues between coworkers. And you’ll notice improved retention, too.

Address conflict constructively

Establish a zero-tolerance policy for workplace gossip to maintain a respectful and positive atmosphere. It’s helpful to reframe conflict as an opportunity for personal and professional growth, not to air personal grievances. Here are some conflict resolution tips to keep in mind:

• Address the issue face-to-face, as written communication can easily be misconstrued.
• Stay focused on the issue at hand and avoid bringing things up from the past.
• Take a pause if needed and resume when both parties are in a clear headspace.
• Collaborate and compromise to find a mutually beneficial solution.

Regularly gather feedback and take action

Change is often challenging. However, getting their buy-in will likely make employees more invested in being part of that change, helping cultural shifts stick. There are many ways to source employee feedback to accommodate different personality types. Some people may feel more comfortable in a one-on-one meeting with their manager, while others may prefer an open discussion in all-hands meetings.

For organization-wide feedback, HR should regularly distribute anonymous surveys so employees can be honest without fearing repercussions. Take their feedback to heart and implement necessary changes to earn their trust and increase engagement.

Invest in corporate social responsibility (CSR)

True workplace ethics may go beyond your office walls. To demonstrate your commitment to doing good and improving company culture, it can help to use your organization’s impact on the wider world, and its role in driving social change.

Corporate Social Responsibility (CSR) projects may be especially beneficial if you’re wondering how to effectively manage Gen Z. According to Bentley-Gallup’s Business in Society survey, 87% of Americans aged 18 and over believe that businesses have the power to improve lives. Around 60% believe they are using that power effectively, and 43% fully trust their intentions.

In fact, almost all (95%) adults believe it’s important that businesses support their communities, while most (91%) think they should prioritize operating sustainably. About the same number (90%) want to see companies work towards improving the world.

What is corporate social responsibility?

Corporate social responsibility (CSR) is a type of business model under which a business aims to self-regulate and align with various philanthropic aims. These might be environmental or social campaigns—for instance, shouldering responsibility for carbon emissions or tackling racism.

There are four main types of Corporate Social Responsibility. These include:

1. Financial: This kind of CSR policy aims to ensure that businesses are ethical in what they do with their finances—in terms of how it impacts their environment, communities, employees, and customers, not  just  their bottom line.
2. Ethical: An ethics-focused CSR policy focuses an organization’s efforts on doing what’s morally right, even when it’s difficult. Endangered Species Chocolate, for example, isn’t just intent on giving a portion of their profits to support endangered species (as their name suggests). They’re also committed to ethically sourcing their chocolate and building better communities.
3. Philanthropic: A focus on philanthropy means putting your money and time where your mouth is, and showing your support for a cause by donating money or time (volunteering). Some companies like Apple match employees’ charitable giving—dollar for dollar  or  $25 per hour volunteered—up to $10,000. Now  that’s  rewarding employees for doing the right thing.
4. Environmental: Focusing on environmental social responsibility means keeping the environment top of mind when operating your business, even when it’s difficult. Toy company LEGO aims to reduce the greenhouse gas emissions from producing, shipping, and selling their toys by 2032.

Apologize when you don’t meet company values

We’re all human, and that means we’re not perfect. This is true of everyone from your company’s CEO right down to the junior intern. Good leaders recognize their faults and admit to their mistakes. This level of accountability can instill trust in your employees, building a positive work culture.

With that in mind, there are bound to be times when we don’t do as well as we would have liked. You can still do the right thing by admitting your mistakes or missteps and being clear in how you will do better going forward.

Get to the heart of the matter with BambooHR^®

When it comes to transforming company culture, taking shots in the dark just won’t cut it. If you want happier employees who’ll stick with you for the long haul, BambooHR has all the tools you need to take a data-driven approach.

For instance, Employee Satisfaction with eNPS^Ⓡ uses AI to analyze and organize anonymous employee feedback in seconds to save you hours of work. With a clear breakdown, you can quickly see what areas the company excels in and what changes employees would love to see.

What’s more, Employee Wellbeing tools help you get a pulse on your people’s overall emotional health. Surveys with research-backed questions put accurate data at your fingertips to improve relationships.

And that’s just the beginning of what you can leverage with BambooHR. To learn more about how you can build a positive work culture and elevate your employee experience, get your free demo today.

*Net Promoter, NPS, and the NPS-related emoticons are registered U.S. trademarks, and NetPromoter Score and Net Promoter System are service marks, of Bain & Company, Inc., NICE Systems, Inc. and Fred Reichheld.