How to leave a toxic workplace

One people director has shared a guide for workers who have identified that their workplace is, in fact, toxic and need an exit strategy.

According to people director Sophie Wardell from Higgs LLP, there are key signs and red flags that will reveal themselves within a toxic workplace.

“A toxic workplace isn’t just somewhere you dislike working; it’s much worse than that. These organisations are made up of deeply negative elements often embedded within their culture – harassment, manipulation, lack of trust, and high stress levels are just a few examples,” Wardell said.

“Fundamentally, a toxic workplace is one where employees don’t feel psychologically safe. Instead, they often leave employees feeling trapped, humiliated, or undervalued.”

Wardell explained some of the key red flags that stand out, which workers must be aware of:

• A hostile culture, for example, cliques, exclusion, and favouritism;

• Burnout-inducing demands and deadlines;

• Bullying;

• Neglect of mental health;

• Micromanagement;

• Lack of progression;

• Unclear expectations; and

• High turnover rates.

“Toxic workplaces can cause profound harm, both to employees and organisations, and can have a serious impact on mental health. Considering how much of our time is spent at work, experiencing stress, rejection, or punitive behaviour in such environments can take a heavy toll. It can lead to deteriorating mental health, including depression and anxiety,” Wardell said.

Leaving a toxic workplace can be a difficult endeavour for workers for a variety of reasons. Financial stability, fear of consequences, and many other reasons can stunt workers from moving on – however, Wardell believes the impact on one’s wellbeing of enduring a toxic

Wardell offered five tips for leaving a toxic workplace:

1. Write it down: “When leaving a job, you want to be as prepared as possible. Preparation lowers anxiety levels. Start by making a list. Assess your situation and reflect on the specific issues that make your workplace toxic or unenjoyable. Writing it down will reinforce your decision to leave and give you clarity.”

2. Prepare finances: “A common worry for many is financial security, especially during a cost-of-living crisis. It’s important to have an open conversation with your family or partner about your decision, and then build a ‘financial cushion.’ Ideally, save enough for three to six months of living expenses. This will provide a safety net if you need time to secure a new role or if you face an income gap.”

3. Explore roles: “While still employed, quietly research and apply for new roles. It’s usually best to secure a new job before leaving, but if your current environment is severely affecting your mental health, sometimes it’s necessary to leave sooner. If possible, though, always try to maintain your income during the transition to reduce financial stress.”

4. Document toxic behaviours: “Toxic behaviours can be subjective, but certain actions – like harassment or discrimination – are unacceptable in the eyes of the law. If you experience these issues, it’s crucial to document them in detail. Write down incidents word for word, along with dates. This documentation can serve as evidence if you need to pursue legal action.”

5. Create your exit plan: “Having a clear exit plan will keep you on track. Create a timeline for leaving that includes updating your CV, submitting applications, attending interviews, and giving notice. Having a structured approach helps you take control of the situation and make a smooth transition.”

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.