Some employees are great at their job—and terrible for the team.

Picture this: You’ve got an employee who nails every task, solves problems like no one else can, and shows up on time, every time. They’re smart, efficient, and always deliver. There’s just one issue: they’re a nightmare to work with. They insult and talk down to teammates, create tension, and make collaboration impossible. And now, morale is at an all-time low and a few good people have already quit or become disengaged.

So what do you do? Do you hold on to your high performer or let them go?

If your gut says, “Keep them,” be prepared to lose a lot more. And if you’re thinking, “No one else on the team delivers like this person, so it’s worth it,” you’re about to learn the hard way just how much damage one toxic employee can do. You also might want to check your priorities.

Here are a few quick stats that show what happens when you protect a toxic star:

  • A single toxic employee can cause 80% of coworkers to become less productive and less engaged.
  • 1 in 5 employees has quit a job because of a toxic colleague.
  • Teams with toxic members are 54% more likely to experience decreased collaboration and 45% more likely to suffer morale issues.

Here are some signs to watch out for if you suspect you have a toxic star:

#1: Constantly undermining or demeaning teammates.

They might roll their eyes in meetings, tear down other people’s ideas, or make passive-aggressive comments that leave their teammates second-guessing themselves. Sometimes, it goes further, like badmouthing coworkers behind their backs or subtly trying to get someone fired. Why? Because they believe they’re untouchable.

They might say:

“Don’t worry boss. I’ll take over the task from John and get it done right.”

“You’re lucky to have me. Not everyone would stick around in this mess.”

“Let me handle the meeting—some people aren’t great with clients.”

“I had to fix the report again. At this point, I should just do it myself.”

“To be honest, I wouldn’t trust so-and-so with something this important.”

#2: Acting like the rules don’t apply to them.

Every employee is expected to follow the same rules, meet deadlines, and show up to essential meetings. However, when a high-performing employee is allowed to break the rules without consequence, it sends a clear, unsettling message to the rest of the team.

Excusing bad behavior—even with the best of intentions—will absolutely destroy morale and your team’s trust in your management capabilities.

Managers who let their toxic star get away with a lot may say stuff like:

  • “He only snapped at you because he’s under a lot of stress. Don’t let it get to you.”
  • “We need her, even if she has an attitude problem. Just try to be more patient and understanding.”
  • “If she is mean to you or pushes you around, maybe you should learn to be more assertive.”
  • “When your role is as important as his, we’ll talk about fairness.”

#3: Creating drama or division.

Some toxic employees thrive on gossip, stirring up drama, and pitting coworkers against each other. They might hoard information, spread rumors, or sabotage someone’s promotion. Sometimes it’s a power move, sometimes it’s to get what they want, and sometimes, it’s simply because they know they can get away with it. When you think you’re invincible, you tend to do stupid things.

However, while the toxic star’s behavior reflects poorly on them, it reflects even worse on you. Tolerating toxicity, no matter how talented the person is, sends the message that results matter more than respect.

#4: Manipulating the people in power.

Toxic employees who know how to “manage up” are often opportunists. They charm the right people, say all the right things, and know exactly how to stay in the good graces of decision-makers. If they do something wrong, like make a serious error or mess up a project, they’re quick to spin the story, pointing fingers and painting themselves as the victim.

If senior leaders don’t see what’s happening behind the scenes, they may keep rewarding the wrong person. Ever wondered how an absolutely incompetent jerk became a senior manager? This is how it happens.

Bottom line: don’t take a star’s word at face value. Talk to multiple people. Ask for specifics. Look for patterns. Just because someone performs well doesn’t mean they’re telling the whole truth. Better yet, put them through a 360—I can guarantee you’ll both be shocked by the results. (Check out SAGE-NM 360 for non-managers and SAGE-M 360 for managers).

#5: Taking all the credit.

They speak in “I” when things go well and “they” when things go wrong. Toxic star employees make sure you know about every one of their accomplishments while their mistakes get buried—or blamed on someone else.

Even if they did save the project that one time or come up with a brilliant fix, that doesn’t excuse bad behavior. Team projects are a team effort. If your star is carrying the whole group, then that’s on you—maybe it’s time to coach your team or actually give others a chance to shine. You’re better off with a group of coachable, collaborative people than one top performer with a toxic attitude.

What to do if you have a toxic star

  • Look beyond performance. Ask yourself: “Aside from results, how is this person affecting the team?” High productivity means nothing if they’re damaging morale and mental health or creating a toxic culture.
  • Gather honest feedback. Don’t assume people feel safe speaking up, especially if they think you’ll defend the star no matter what. Use anonymous surveys to get the full picture (again, a 360 works best, along with some coaching sessions).
  • Hold them to the same standards. Being good at their job doesn’t give toxic stars a free pass. If they break rules or treat others poorly, they should face the same consequences as everyone else. Remember, your credibility is on the line too.
  • Be prepared to let them go. A toxic star might threaten to walk, and that might feel risky. But keeping them sends the message that integrity doesn’t matter. Let them go, and you may be surprised how much your team flourishes without their haunting shadow.

A venomous snake is still dangerous, even in a cage. A toxic employee, no matter how skilled, is still toxic. Don’t sacrifice your team’s well-being. The culture you build—or destroy—depends on what you’re willing to tolerate.

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