The Hidden Cost of Keeping Toxic High Performers

Every company has them: employees who deliver exceptional results but create chaos in the process. They hit their targets, drive revenue, and seem irreplaceable, but behind the scenes, they leave a trail of stress, disengagement, and turnover.

Many leaders hesitate to address this issue, fearing short-term losses. But the long-term impact of keeping toxic high performers is far more damaging than most realize.

The Problem: Why Toxic High Performers Cost You More Than They Deliver

At first glance, toxic but productive employees seem like an asset. They close deals, push projects forward, and often outperform their peers. But research shows their presence does more harm than good:

• Decreased Team Performance: Research indicates that toxic employees can significantly reduce the performance of those working alongside them.
  (OpenSide)
• Increased Turnover Costs: A Harvard Business School study found that avoiding a toxic worker can save a company approximately $12,500 in turnover costs, exceeding the gains from hiring a superstar.
  (Harvard Business School)

The Silent Damage of Toxic Productivity

• High Turnover: Talented employees don’t stay in toxic environments. Keeping a toxic high performer often means losing several strong team members.
• Cultural Erosion: When toxic behavior goes unaddressed, it sends a message that performance matters more than values, eroding trust and morale.
• Burnout and Stress: Teams working with toxic individuals experience higher stress levels, leading to increased absenteeism and lower productivity.
• Reputational Damage: A toxic culture spills into external brand perception, making it harder to attract top talent and retain clients.

How to Handle Toxic High Performers

Cutting ties with a toxic high performer can be daunting, but the long-term benefits far outweigh the temporary disruption. Here’s how to approach it:

1. Identify the Warning Signs – Are they creating unnecessary conflicts? Do they undermine team morale? Are peers hesitant to work with them?
2. Measure the Full Impact – Track engagement, turnover, and team sentiment to quantify the hidden cost of their presence.
3. Address the Behavior Directly – Provide clear feedback and set expectations for improvement. If the toxicity persists, act decisively.
4. Prioritize Cultural Fit Over Short-Term Gains – A cohesive, engaged team will outperform a toxic, high-performing individual in the long run.
5. Use Data to Make Informed Decisions – Leverage real-time insights to assess team health and ensure you’re making the right call.

How Instill Can Help

At Instill, we help leaders identify and measure the impact of toxic behaviors on their teams. Our AI-driven culture insights pinpoint where friction is happening and highlight the employees who elevate, or undermine, your team’s success.

• See real-time team dynamics and morale shifts.
• Get early warning signs of toxicity before it spreads.
• Make data-backed decisions to protect your culture.

Ready to build a high-performing team without the toxicity? Try Instill today.

Cheers,

The Instill Team

Sources:

Toxic Workers - Harvard Business School

The Paradox of the Poisonous Performer - Openside