Highlights:
- “A high performer must understand that excellence in results cannot come at the cost of team harmony or workplace culture,” said Neha Handa, Senior Manager at MetaSpace.
- Handa suggests acknowledging a high performer’s contributions “while clearly reinforcing that professional conduct and teamwork are equally critical to overall success.”
Having a high performer in any team is certainly a thing to be coveted. Leaders and HR professionals strive to retain and develop their top talent, ensuring that their results are the best they can deliver.
However, someone’s performance as an employee does not always mean that they would be a good fit as a team member. Despite the good results, if a high performer’s behaviour starts to disrupt a company’s work culture, leaders are often forced to ask one critical question:
“Is retention worth the risk?”
For many companies, losing a high performer can be devastating to results, but does that mean their toxic behaviour should be ignored or tolerated? Do these positives always outweigh the negatives? What should a company do when faced with a dilemma like this? How should one behave when dealing with a “toxic star?”
Understanding the “Toxic Star” Phenomenon
Let’s start by discussing just who a “toxic star” is. These employees are often highly skilled, results-driven individuals. However, it’s not their positive traits that weigh on the company leaders but the negative ones.
An employee can indeed provide results, but might have poor team collaboration. They may have excellent ideas, but also often undermine their peers or leaders. More than anything, while they may be good for the company’s numbers, they may also be an antithesis to the company’s values.
The cost of having a “toxic star” on board may begin with a loss in morale, trust, and retention, but can also quickly impact financial performance and the business. Ultimately, even with their impressive numbers, most company leaders have good reasons for their “stars” not to be “toxic.”
Neha Handa, Senior Manager at MetaSpace, shared her thoughts on how it is imperative that the “stars” of any company align with its collaborative values, rather than acting in a manner that is the exact opposite.
“Workplace behaviour plays a crucial role for every employee, regardless of performance level. The organisation views each employee as a representative of its culture and values, and therefore expects high performers to set positive examples for others,” Handa explained. ”Demonstrating both strong results and respectful behaviour helps foster a healthy, collaborative, and high-performing environment.”
The Retention Mindset: Why Companies Hold On
If a “toxic star” is really that detrimental to a company’s image and results, then why do companies remain reluctant to let such employees go?
The Metrics Trap
When faced with a “toxic star,” every leader has to decide what they value more: the KPIs or behavioural points. When KPIs win this particular debate, the result leads to the retention of a “toxic star” to keep the numbers even, even though morale might be declining.
The “Indispensable Employee” Illusion
The crux of the retention versus risk debate in this particular scenario comes from the fact that many leaders might find a problematic employee to be “indispensable.” Yes, the high-performer might be creating problems in the office, but can they really let them go at the cost of disrupting the workflow and knowledge base that the employee carries?
Leadership Bias
There is yet another fact that not all “toxic stars” might behave in an unsuitable manner when working with their leaders. They may be completely cordial and even work well with their superiors, but it might just be their peers and juniors who face the brunt of some of the more undesirable aspects of their behaviour.
The Risk Perspective: Long-Term Damage to Culture and Credibility
“A high performer must understand that excellence in results cannot come at the cost of team harmony or workplace culture,” Handa strongly stated when discussing just what retaining a toxic star can do.
More than anything, having a “toxic star” can damage the team’s chemistry and may make other team members feel undervalued. The erosion of psychological safety in teams can lead to decreased performance from others, even when the “star” continues to perform well.
A company’s reputation and employer branding can also take a massive hit when a high performer keeps getting away with actions that others might get reprimanded for. The effect on a manager’s credibility after this and the perception of fairness can be hard to salvage.
“It sends a message that results are valued more than respect, teamwork, and culture. This creates a negative ripple effect across the organisation. Other employees may feel demotivated, undervalued, and disengaged, seeing that good behaviour and collaboration are not recognised equally,” explained Handa.
“Over time, this can lead to reduced team morale, higher attrition, loss of trust in leadership, and a decline in overall performance. It also discourages open communication, as team members may hesitate to raise concerns or share feedback.”
Ultimately, while the “toxic star” may indeed be behind their own high numbers, they can also be responsible for bringing down the other metrics. This is when company leaders have to make the tough decision of either retaining or letting go.
Balancing Retention and Risk: Key Decision Factors
Given the negative connotations associated with the term “toxic star,” it is essential that managers and team leaders thoroughly evaluate the situation before deciding between retention and expulsion.
Evaluating Impact vs. Influence
Is the performance worth the collateral damage? Ask this while observing the behaviour and results of an employee, no matter their status in the team. While a company’s profit is important, so are its values and atmosphere.
360 Feedback
A 360-degree feedback process, along with behavioural assessment, can allow decision-makers to gain a better understanding of the whole picture rather than just their observations and the words of those who stepped forward.
Difficult or Toxic
Sometimes, the problem may not be as one-sided as it might appear. An employee may get deemed toxic by one team member but difficult by another, based on their ideological differences. It becomes imperative to distinguish between the two with an impartial mind.
Possible Interventions Before Exit
Having a “toxic star” on a team does not necessarily mean that a company needs to let them go right away. They too are a part of the team and given their undeniable contributions, companies can indeed try some measures to possibly retain them while improving their behaviour.
The first step to rectifying the negative ripple of a high performer’s behaviour can be a simple conversation. Rather than tiptoeing around the situation, having an open dialogue can often nip the situation in the bud while also helping someone rectify their behavioural patterns.
“When addressing workplace behaviour with a high performer, it’s important to strike a balance between recognition and accountability. The conversation should acknowledge their valuable contributions while clearly reinforcing that professional conduct and teamwork are equally critical to overall success,” cautioned Handa.
“The discussion should be approached with empathy, firmness, and clarity — focusing on specific behavioural examples, their impact on others, and the expectations for improvement.”
A firm balance, as Handa stated, is crucial when seeking the best possible outcomes. Some other possible interventions include:
- Set Expectations: Have an open discussion with the employee and set firm behavioural expectations and timelines for change. Providing a second chance is never a bad thing, but it should still come with established expectations.
- Targeted Coaching: Provide high performers with corrective guidance about their behaviour. Targeted teachings and suggestions go a long way in correcting behaviour that might be disrupting workplace harmony.
- Role Realignment or Project Reassignment: If the problem is centred on a particular team or assignment, companies can try a restructuring. Often, it may simply be a lack of synchronisation in work styles and thought processes that exacerbates one’s negative traits.
When It’s Time to Let Go
Despite all possible interventions and their high numbers, there are times when company leaders will indeed have to make the hard choice and let a “star” go.
Recognise when the damage outweighs the benefit. Yes, they may have a strong impact on the company’s numbers, and their absence would likely be hard to fill, but if the negatives do outweigh the positives, there is only one choice.
That said, their exit from a company should be given the same dignity as you would give to anyone else. Whether or not the sentiment is reciprocated, it is important that you, as a leader, remain true to your company’s values.
More often than not, a “toxic star” affects various other team members. Communicate internally with affected team members to maintain trust and dignity. Show that their concerns were indeed heard and addressed.
In the End…
True performance is not just what people deliver, but how they deliver it. High performers can often feel indispensable, but there are certain limits that even they should not be allowed to cross.
In this era of workplace evolution, competency no longer ranks over positivity. In fact, many team leaders and peers prefer to have a moderately skilled but collaborative employee over a high-performing but toxic one.
The best companies are no longer those with the highest numbers, but rather those that value their teams over profits. A “star” is important for any team, especially one that uses its light to guide others rather than trying to outshine those around them.
