The Real Cost of Keeping the Wrong Employee

The Real Cost of Keeping the Wrong Employee

June 02, 20252 min read

How one toxic hire can undo years of progress—and what to do about it.

You already know that hiring the right people is crucial.
But what’s less talked about is the
damage done when you keep the wrong person too long.

We’re not talking about someone who needs more training or mentorship.
We’re talking about the
toxic employee:
– The one who undermines leadership
– Plays politics
– Avoids accountability
– Spreads negativity like wildfire

And here’s the kicker: they’re often high performers on paper.

Toxic ≠ Terrible at Their Job

Sometimes, toxic employees are great at getting results—but they do it at the expense of others.
They create tension, mistrust, and drama behind the scenes.

That silent friction?
It drives away your top talent, slows down progress, and poisons your culture over time.

According to research from Harvard Business School, keeping a toxic employee on staff can cost more than double the value of hiring a top performer.

Here’s What It Really Costs You:

🚨 Lost productivity – Teams spend more time managing conflict than doing meaningful work.
🚨
Declining morale – A toxic employee’s behavior becomes the new standard if it’s tolerated.
🚨
Higher turnover – Great people will leave if they feel unprotected or undervalued.
🚨
Damaged brand – Toxic cultures leak into customer experiences and reputation.

In short: One wrong hire can infect your whole ecosystem.

What to Do Instead

Set the tone early – Make cultural expectations clear during hiring, not just after onboarding.
Address behavior, not just results – Performance isn’t just what someone delivers; it’s how they deliver it.
Create a feedback loop – Empower teams to report toxic behavior without fear.
Don’t delay tough decisions – The longer you wait, the more damage is done.

Great Culture Is Protected, Not Just Promoted

A winning culture doesn’t happen by chance—it’s built by leaders who are willing to protect it at all costs.

Sometimes, that means letting go of someone who delivers results but destroys the environment that makes results possible.

Want Help Navigating a Tough Team Decision?

We help organizations like yours identify culture risks and develop a plan to protect their most valuable asset—their people.

🚀 Want to Build a Team That’s Motivated Beyond Money?
We help leaders create high-retention cultures where employees are engaged, invested, and inspired—for the long haul.

📞 Click here to schedule a 15-minute no-obligation call with one of our team members
📧 Or email us at [email protected]

Let’s build a culture your people won’t want to leave. 🙌

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