LM Extras Sep 25, 2023

Are You Hiring Toxic Employees?

How to know before you make that offer.

You’ve certainly done it at least once — hired the toxic employee. You were sure they were the best candidate as they aced questions and were superior to other candidates — polished, poised and personable. Everything was hunky-dory the first three months until, uh oh: The toxic employee appeared out of nowhere. 

Chere Estrin

How did this happen? You checked references, they looked good on social media and they impressed everyone in the interview process. And still, the toxic traits reared their ugly head.

Hiring a toxic employee is costly and harmful. Toxic employees can quietly undermine others, while protecting themselves against perceived self-esteem threats. They cost you your best employees. Mistakes and accidents happen. Star performers leave. Worse, good candidates avoid the firm.

A 2015 Harvard Business School study found 78% of employees said their organizational commitment declined when faced with toxic behavior. The study reviewed 58,542 employees, finding that 1 in 20 were fired for toxic behavior within their first year. The study estimated a single toxic employee costs about $12,500.

The study identified three prominent risk factors for toxic behavior: self-regarding, rule orientation and overconfidence. Here’s how each factor plays a role.

1. Self-regarding

Many firms make the mistake of designing a selection process that attracts people who are more self-regarding by:

  • Including self-centered terms like “rockstar” or “superstar” in job postings.
  • Promoting games, incentives and prizes.
  • Selling advancement opportunities, rather than the job.

You can fix this by emphasizing teamwork instead. For example, highlight teamwork on your website and use team-focused language in your job descriptions.

2. Rules-oriented

Job applicants in the study were also asked to decide which two statements applied to them:

  1. Rules are made to be followed.
  2. Sometimes it’s necessary to break the rules.

The surprising twist is those choosing number one were 25% more likely to be fired for toxic behavior. People who stated they are rule-abiders don’t necessarily mean they’ll abide.

Furthermore, managers with lots of toxic employees tend to be overly focused on rules such as attendance, dress codes and conduct polices. Competent leaders spend less time on what not to do, and more time reinforcing positive behaviors (what to do). Rather than reviewing attendance policies, emphasize why employees want to come to work, such as challenging work, compelling vision, and a trusting, supportive environment.

3. Overconfidence

These employees believe they’re awesome, even when they’re not!

Study participants were also asked to estimate computer skills. A whopping 34% were overconfident as tests revealed they were less skillful than claimed. In addition, they were 15% more likely to be terminated for toxic behavior.

HOW TO SPOT TOXIC EMPLOYEES BEFORE THEY START

Toxic employees are generally not aware of their negative impact, nor do they care. They may react confrontationally to feedback. They persecute others and play victims, complaining they were treated unfairly. They need to create power. It all takes a toll on your staff and your firm’s culture.

But there are ways to weed out toxic employees before they start.  

“A 2015 Harvard Business School study found 78% of employees said their organizational commitment declined when faced with toxic behavior.”

First, checking references means little without the right questions. Most firms give minimal information — dates and rehire eligibility — for fear of being sued. I ask: Do you believe for one moment references are going to say bad things? Don’t take their word as the whole truth.  

Instead, ask about civility. Understanding past behavior helps assess whether they’ll be civilized on the job. Ask behavioral examples, such as: What’s it like working with this person? What could this person improve upon? Did the person’s behaviors reflect negatively?

Another tip is to ask how real situations were managed, as it’s more valuable than hypothetical questions such as “How would you handle …” or “What would you do if … .” Instead, request two to three examples to find matching values. Remember: Candidates come rehearsed.

Here are some questions to consider:

  • What would you like to improve? Another? Third? (This is the old, “Tell me about your weaknesses,” which is a meaningless question as there isn’t any candidate who hasn’t learned how to flip this question.) Asking for more makes them think.
  • Tell me when you’ve had to deal with conflict.
  • What are your stress signals?
  • Who do you find difficult to work with?

Here are questions beyond routine:

  • Ask four things they liked least about their firm. Four can reveal toxicity.
  • Involve others. A whole team is hard to fool. Teams can better sniff out toxic employees.
  • Are they holding grudges? It’s usually personality patterns rather than situations. Anyone mentioning people problems is a problem.
  • Deviate from boring. Go for probing, unexpected questions. Anyone can answer, “What are your strengths?” However, you’ll  get more off-the-cuff responses to “What lie do you tell often?” Watch for nonverbal cues. Listen for team acknowledgment. If they seem reluctant to credit co-workers, this is a problem.

When reaching out to references, call instead of email. That’s how you can get a real sense of the candidate’s potential. A conversation can reveal more about potential behavioral problems. Useful data comes from tone, demeanor and pace — not necessarily written words.

And in the days of social platforms like LinkedIn, you may find you have contacts in common with the potential hire. Talk to that network. Quite often, you’ll get a true picture.

Toxicity isn’t listed on resumes under skills. How we all wish it was though! We’d save a whole lot of money, turnover and angst, wouldn’t we? Low unemployment rates cause tremendous competition for good candidates, making it tempting to avoid hard questions. But avoid that temptation — you’ll not only lose them quickly, but you also risk losing good employees who don’t want to work under these circumstances. Do your firm a favor. Change the way you interview, check references differently and don’t overlook subtle hints. The firm will thank you!