I’m betting that everyone reading this article will know someone in their organisation whose disruptive behaviours have been tolerated for far too long. As leaders, we often find ourselves shielded from the true impact these individuals have, as they are extremely good at managing up. This leads to a “halo effect,” where their performance with senior management hides the negative impact on the team and the organisation as a whole.
I’ve been involved in numerous cases where organisations finally bit the bullet and let go of these toxic employees. While it was a challenging decision at the time, in hindsight, it was always the best thing for the organisation. With strategic planning, companies often find they are far better off without them.
Signs of a Disruptive Employee
While every workplace has its challenges, some employees go beyond normal resistance to change. These individuals can undermine key initiatives, disrupt workflows, and sow division in covert ways. Some signs of toxic or disruptive behaviour include:
- Persistent negativity and resistance to change
- Undermining leadership and spreading dissent
- Creating conflict or division within teams
- Refusing to accept accountability
- Disrupting business operations, rather than improving them
- Holding the organisation ‘ransom’ with their perceived value and influence
How to Manage Disruptive Employees
Managing difficult employees, particularly those who display toxic behaviours, can be a daunting task. However, with the right strategies, you can take control of the situation effectively. Here are some proven methods for addressing toxic employees:
1. Address the Issue Early
Don’t wait for disruptive behaviours to escalate. Whether it’s inappropriate emails, offensive comments in meetings, or misuse of company resources like travel or corporate credit cards, raise concerns as soon as they arise. Clearly communicate the impact of their behaviour and set clear expectations for improvement.
2. Set Clear Expectations
Ensure that employees have well-defined goals, performance standards, and behavioural expectations. Document these standards and communicate them effectively so the employee knows exactly what is expected of them.
3. Use Performance Improvement Plans (PIP)
A structured Performance Improvement Plan (PIP) can serve as a roadmap for addressing disruptive behaviours. This plan should include specific, measurable goals, timelines, and regular feedback sessions to assess progress.
4. Document Everything
It’s crucial to maintain thorough records of all incidents, performance issues, and any corrective actions taken. This documentation can be essential if termination becomes necessary, ensuring that the process is fair and transparent.
5. Provide Coaching & Feedback
In many cases, employees displaying toxic behaviours may not be fully aware of the impact they are having. Offering direct, constructive feedback and professional coaching can help them become more self-aware and provide opportunities for behavioural change.
6. Recognise When It’s Time to Let Go
At some point, it’s not just about performance—it’s about influence. Employees who consistently undermine organisational efforts and foster negativity become a liability. They may secure promotions or opportunities not through merit, but by knowing when and where to be visible. If they continue to disrupt the team and hinder the success of the organisation, it may be time to part ways.
When It’s Time to Fire an Employee
If an employee continues to disrupt the organisation despite your best efforts, termination should be considered. Although Australian employment laws can be complex, employers have the ability to take action when necessary. Key steps in the termination process include:
- Ensuring compliance with employment laws and contractual obligations. See Fair Work Commission
- Conducting a fair and documented process that follows organisational policies
- Providing proper notice and severance (if applicable)
- Managing the departure professionally to minimise business disruption and preserve the team’s morale
The Benefits of Confidential Settlements and Risk Management
While you should expect the employee to seek legal advice, with proactive and pragmatic planning, you can often resolve the matter amicably through confidential settlements. These commercial arrangements can be the best and least risky option, especially when letting go of long-term senior employees. A well-negotiated settlement allows both parties to part ways on good terms, minimising reputational risk and avoiding costly, lengthy legal battles.
Final Thoughts: Don’t Let Toxic Employees Hold Your Organisation Ransom
It’s essential not to let fear of disruption stop you from making the necessary leadership decisions. High-performing workplaces thrive on trust, accountability, and alignment with the organisation’s goals—not on individuals who refuse to adapt and prioritise their own agenda over the success of the company.
By making strategic decisions and planning for the risks involved, organisations will often find themselves better off without those toxic employees who refuse to align with the company culture and vision.
Have You Had to Deal with a Toxic High Performer?
I’d love to hear your experiences. Share your stories in the comments below!
Need Help Managing a Disruptive Employee?
If you’re facing challenges with a toxic high performer or disruptive employees in your workplace, reach out to me, David Haydon, at ER Focus. For professional advice and tailored support, feel free to text or call me at 0409 400 118 or email dhaydon@erfocus.com.au.