Toxic leadership – an underestimated factor accelerating burnout

When leadership makes you ill

A toxic leadership culture is one of the biggest, yet often overlooked, risk factors for mental health in the workplace. Our colleague Sven Briesemeister, for example, is familiar with this phenomenon not only from his work as a consultant, but also from his time as a psychotherapist in a rehabilitation clinic: for the majority of patients suffering from burnout, the primary trigger is not work overload – but the behaviour of their line managers. Humiliation, arbitrary treatment and emotional abuse left a deeper mark than the sheer volume of work alone.

What is toxic leadership?

Toxic leadership is destructive leadership behaviour that places a psychological strain on employees, destabilises teams and, in the long term, weakens an organisation’s performance. It involves the abuse of power, a lack of empathy and behaviour that leads to humiliation rather than encouragement. Whilst good leadership is based on trust and development, toxic leadership acts as an accelerant: it undermines motivation and increases the risk of burnout and staff turnover.

What are the characteristics and warning signs?

Toxic leadership is often difficult to recognise, as it can manifest itself in small, inconspicuous actions or as a large, destructive structure. A leader may display a single warning sign or several characteristics at once. Typical symptoms include:

• Excessive need for control: micromanagement and a lack of trust, whereby decisions are not delegated but are constantly questioned or revised.
• Withholding of information: information is deliberately withheld in order to secure one’s own power.
• Manipulation: Teams are pitted against one another to stir up conflict and strengthen one’s own position of power, resulting in mistrust and fragmented collaboration.
• Exposure of staff: Public humiliation and criticism used to exert control destroy trust and lead to a toxic working atmosphere.
• Favouritism: Unfair treatment of certain employees, which fuels resentment and demotivates the team.
• Narcissistic self-image: Managers place themselves at the centre of attention, ignore the team’s needs and make decisions based on personal ego rather than objective criteria.

These characteristics create a toxic environment that undermines team morale and leads to anxiety, stress and resignation.

What types of toxic leaders are there?

There are many types of toxic leaders. The most common are:

• The narcissist: He demands admiration and will not tolerate criticism.
• The micromanager: They get bogged down in details and stifle any initiative.
• The invisible leader: They shirk responsibility and leave the team without direction.
• The hot-headed leader: They lead through shouting and fear.
• The puppet master: They play staff off against one another.
• The cold leader: They deliberately keep their distance and refuse to show empathy.

These types differ in how they express themselves – but the result remains the same: an environment that wears staff down and undermines the team’s performance by destroying trust, hindering collaboration and reducing staff motivation. In the long term, this leads to a decline in productivity, innovation and staff retention. Teams suffering from toxic leadership fail to reach their potential and lose efficiency.

What can we learn from real-life examples?

A study by Carleton et al. (2016) in professional sport showed that abusive coaches in the NBA not only undermined their players’ performance but also fostered aggressive behaviour in the long term. 

We observe something similar in companies: in a rehabilitation clinic, many patients suffering from burnout reported that it was not their workload but toxic line managers that were the deciding factor – humiliation and arbitrary behaviour had a more lasting effect than overtime. 

In a positive counter-example, Google relies on so-called ‘blameless post-mortems’, which systematically learn from mistakes without seeking to assign blame. This shows that structures can either reinforce destructive dynamics or consciously break them.

What are the consequences for employees and companies?

Toxic leadership costs companies not only in terms of staff wellbeing, but also financially. 

Gallup (2024) and the DAK Psych-Report (2024) show that high staff turnover, lost productivity and sick leave cost billions every year. Those who allow toxic leadership to persist jeopardise not only the well-being of employees but also the company’s overall competitiveness. The problem extends far beyond HR and is a key responsibility of management.

For employees, toxic leadership often leads to mental health conditions such as burnout, depression and anxiety disorders. Constant stress not only has a negative impact on well-being but also strains social and family relationships. Companies are faced with rising absenteeism, higher staff turnover and falling productivity – a combination that jeopardises competitiveness. Gallup estimates that low staff retention costs up to 8.8 billion US dollars annually.

Protection against toxic leadership: three key strategies

Protection against toxic leadership does not begin with withdrawal, but with awareness and shared responsibility. Leadership and the team are part of the same culture – and every individual helps to shape it.
It is precisely in stressful times that the resilience of this culture becomes apparent: whether people support one another or simply stick to the letter of the law.

1. Set clear boundaries – but through dialogue
Setting boundaries does not mean shutting yourself off. It means talking openly about pressures and priorities before they escalate. Those who seek dialogue at an early stage enable joint solutions, such as a redistribution of tasks or clearer roles. Documentation remains important – written records provide clarity and options for action.

2. Seek support and connection
Isolation exacerbates stress. Those who seek support – whether within the team, from colleagues or from the works council – strengthen not only themselves but also others. A culture in which people support one another is the best protection against destructive behaviour.

3. Self-care as part of effectiveness
Self-care does not mean withdrawing, but consciously managing one’s own energy. Mindfulness, breaks and setting boundaries are not signs of weakness, but prerequisites for remaining effective in the long term. Employees bear responsibility for themselves in this regard – but companies must also create the conditions that make this possible.

Legal and organisational safeguards – and what culture has to do with them

Legal measures are essential when toxic leadership arises. However, they often only come into play once the damage has already been done. Culture is the real key to prevention.

1. Whistleblowing schemes and feedback channels

Anonymous schemes and regular feedback mechanisms help to identify problems at an early stage. It is crucial, however, that reports are seen not as a threat, but as an opportunity to learn.

2. Works council and collective responsibility

An active works council can make a big difference – but teams can also protect one another by speaking openly about boundaries and expectations. Culture is created when everyone is involved, not just managers.

3. Consequences for misconduct

Warnings and disciplinary action are a last resort. It is important that they are embedded within a system of responsibility and fairness. It is clarity, not fear, that should guide our actions.

4. Leadership and cultural development as an ongoing task

Training on communication, feedback and conflict resolution should be standard practice – as should sessions in which teams reflect on values, collaboration and periods of stress.

Psychological safety arises when people feel: ‘Here, I can say what is weighing on me – and we’ll sort it out together.’

Recommendations for organisations

Organisations must systematically tackle toxic leadership. The first step is diagnosis: regular pulse checks and feedback tools can help to identify warning signs at an early stage. When selecting managers, clear criteria for leadership behaviour should apply alongside professional competence – in line with the principle: ‘No promotion without a people review’.

Psychological safety is a crucial protective factor. Employees must feel safe to admit mistakes and express ideas without fearing negative consequences. Gallup data shows that employees in a safe environment are less likely to suffer from burnout and are more engaged in their work. Psychological safety can be fostered through an open feedback culture and a positive approach to mistakes. Managers should recognise mistakes as learning opportunities and encourage employees to communicate them openly. Innovation must also be encouraged to give employees the feeling that their contributions are valued.

Furthermore, compulsory training on communication and conflict resolution is necessary. Managers must learn to deal with challenges transparently and to show their own vulnerability. The introduction of ‘Failure Culture Days’ and the visibility of positive role models strengthen the desired working atmosphere.

Scientifically proven: Why good leadership protects

Studies clearly demonstrate the impact of toxic leadership on health and motivation. In a meta-analysis, Pletzer et al. (2023) highlighted the link between destructive leadership, burnout and declining motivation. Gallup data (2023) show that supportive cultures make a measurable contribution to engagement and loyalty.

Conclusion and Next Steps

Toxic leadership is a slow-acting poison for organisations – with massive psychological, cultural and economic consequences. Anyone wishing to prevent burnout effectively must recognise destructive leadership behaviour at an early stage and take decisive action. If building psychological safety is made a priority, everyone will ultimately benefit.

Next Steps:

• Introduce early-warning systems: Regular pulse checks and 360-degree feedback help to identify toxic behaviour at an early stage.
• Start small: Pilot programmes promoting a culture of error and feedback yield rapid results.
• Leadership starts with oneself: Managers must show their own vulnerability in order to create psychological safety.

Take the initiative now! 

Would you like to effectively prevent toxic leadership and the risk of burnout in your organisation? Contact us so that, together, we can develop a preventative strategy against toxic leadership and establish a resilient, healthy leadership culture that strengthens your organisation in the long term whilst protecting your staff.