Excerpt Why March 2022

https://sloanreview.mit.edu/article/why-every-leader-needs-to-worry-about-toxic-culture/

  • Employee turnover triggered by a toxic culture cost U.S. employers nearly $50 billion per year before the Great Resignation began.
    To understand what makes a culture toxic, we analyzed the language employees use to describe their organization. When workers write a Glassdoor review, they rate corporate culture on a 5-point scale and also describe their employer’s pros and cons. The topics they choose to write about reveal which factors are most relevant to them. By analyzing the relationship between how they describe their employer and how they rate its culture, we were able to shed light on the cultural factors that best predict a toxic culture. We studied more than 1.3 million Glassdoor reviews from U.S. employees of Culture 500 companies, a sample of large organizations from 40 industries.
  • We used the text analytics platform developed by CultureX to identify which topics each employee discussed negatively. (We measured 128 topics in total.) We then analyzed which of the topics mentioned had the largest negative impact on how employees rated corporate culture on a 5-point scale.
    Disrespectful
    Lack of consideration, courtesy and dignity for other 66
    No Inclusive
    LGBTQ inequity 65
    Disability inequity 55
    Racial inequity 58
    Age inequity 44
    Gender inequity 40
    Cronyism and nepotism 40
    General no inclusive culture 33
    Unethical
    Unethical behavior 62
    Dishonesty 59
    Lack of regulatory complince 44
    Cutthroat
    Backstabbing behavior and ruthless competiton 61
    Abusive
    Bullying, harassment, and hostility 50
  • ( MIT SMR/Glassdoor Culture 500, is an annual index and research project that uses over 1.4 million employee reviews to analyze culture in leading companies)