Hogan Assessments reveals toxicity drains U.S. companies of $292 billion annually, and remote work is making it worse
TULSA, Okla. February 18, 2025 – We've all experienced it: the colleague who brings the mood down, the boss who thrives on chaos, or the team member whose negativity drains the energy from the room. These "every day" toxic behaviors create stress, hamper productivity, and leave us feeling demoralized. But what may not be immediately apparent is the significant hidden cost they carry.
Even seemingly small comments or actions can be red flags. As Ryne Sherman, PhD, Chief Science Officer at Hogan Assessments and Co-Host of The Science of Personality Podcast, explains: “Toxic behavior can manifest in many forms, from overt aggression and bullying to more subtle acts of negativity and manipulation. Regardless of how it presents, the impact is undeniable. It erodes trust, stifles innovation, and ultimately, hurts the bottom line."
The hidden costs of toxic employees can extend far beyond just the financial implications, negatively impacting company culture and employee well-being. Drawing from an archive of panel data from working adults located in the United States, Hogan Assessments, a global leader in personality assessment, highlights three key effects these behaviors have on both traditional and evolving work environments:
The Price Tag of a Toxic Workplace: According to Hogan, approximately 6% of the global workforce can be categorized as toxic employees, a figure that remains consistent across industries and job levels. A 2015 study by Houseman and Minor found that while hiring a top-performing employee can generate a company between 7-19% in revenue relative to the employee’s salary, avoiding a toxic employee can save a whopping 44% in additional costs. Avoiding a toxic employee is worth 2-4 times as much as hiring a superstar. Given that 6% of the workforce is toxic, US companies could save an estimated $292.4 billion in 2025 by avoiding toxic hires.
Can't Log Off from Toxicity: Hogan's research on successful remote work shows that dependability is key for success. Interestingly, the personality characteristics that predict dependability also predict toxicity. This means individuals who are seen as toxic are often viewed as undependable by their coworkers, making them less likely to succeed in a remote work environment.
"Remote work can affect how toxic behaviors manifest. For example, instead of showing up late, a toxic remote worker may be hard to reach consistently," explains Alise Dabdoub, PhD, Director of Product Innovation at Hogan Assessments. The shift to remote and hybrid work has changed how these behaviors appear but hasn’t eliminated them.
Despite these changes in work environment, Hogan conducted research in 2021 on personality shifts before and after the Covid-19 pandemic and revealed that core personality characteristics remain mostly unchanged, indicating that while the expression of toxicity may evolve, the underlying behaviors are likely here to stay.
The Domino Effect of Toxicity: Toxic employees create a negative and unproductive culture that undermines engagement and ultimately destroys the teams they are part of. Colleagues who are forced to work with a toxic individual often leave, driven away by harassment, negativity, and a disregard for team standards. The impact of toxicity on coworkers can vary depending on the individual's personality. For example, those who are easily upset, skeptical, or disengaged can hurt team performance and dependability, while those who are bold, manipulative, or attention-seeking can damage trust and relationships.
Negativity in the workplace is more than just a drain on morale—it's a serious threat to a company's success. To cultivate a positive and productive environment, addressing toxic behavior is not optional, it's essential.
Empowering employees to report such behavior to both their direct managers and HR is crucial. Early intervention is key: it not only improves the immediate atmosphere but also prevents escalation, fostering a more supportive workplace for everyone.
The rise of remote and hybrid work brings new challenges, making it even more vital for HR and leadership to proactively identify and address evolving forms of toxicity.
One powerful tool in this effort is the use of personality assessments during the hiring process. These assessments go beyond traditional metrics, offering insights into an individual's potential for toxic behavior. While no single "toxic" personality type exists, certain combinations can raise red flags, allowing companies to proactively avoid potential issues before they take root.
By taking a proactive, multi-faceted approach, organizations can create a work environment where negativity is minimized, and every employee feels supported, respected, and empowered to thrive.
About Hogan Assessments: The international leader in personality insights, Hogan Assessments produces valid, reliable personality assessments grounded in decades' worth of research. More than 75% of the Fortune 500 use Hogan's talent acquisition and development solutions to hire the right people without bias, boost productivity, reduce turnover, and promote diversity and inclusion. For more information, visit hoganassessments.com.
