The Hidden Cost of ‘Toxic Stars’ in Teams

Tuesday 23rd Sep 2025

man sitting at desk throwing money into the air

You know the pattern. A high performer hits targets but leaves anxiety, silence and turnover behind. The short-term gains look good, but the hidden costs build up.

Why organisations keep toxic stars

Fear of lost revenue or performance if they go.

“Too hard to replace” skills or client relationships.

Leaders avoiding conflict.

Mistaking bullying for “drive” or “high standards.”

Managing up well while managing down badly.

The messages this sends

Results trump respect.

Rules are optional for favourites.

Speaking up is risky.

Values are for posters, not practice.

The impact

Psychological safety

People stop asking for help, raising risks or sharing ideas.
Meetings get quiet. Problems surface too late.

Retention

Good people leave first.
Replacement costs rise. Institutional memory drops

Innovation

Less debate. Fewer experiments.
Teams play safe and copy the star’s way.

Some real life examples:

Politics: Bullying upheld by an inquiry, yet a minister keeps their role. Message: outcomes over conduct.
Sport: Winning coaches retained after bullying findings.
Message: trophies matter more than treatment.
Tech: Boards back “proven” leaders despite culture failings.
Message: growth over people.

Different sectors, same trade-off. The costs arrive later.

Where culture diagnostics help

You often can’t see the damage on a dashboard. Diagnostics make it visible.

What to look at:

Turnover and absence by team: Outliers around a star are a red flag.
Pulse data: Scores on fairness, respect, workload and psychological safety.
360s and upward feedback: Gaps between “hits targets” and “how they lead.”
Network analysis: Who collaborates with whom and who people avoid.
Exit interviews: Repeated mentions of the same person or team.

Turn data into a business case:

Quantify replacement costs, onboarding time, lost productivity and risk events.
Compare the star’s contribution with the total drag on their team.
Track innovation inputs: ideas submitted, experiments run, cross-team projects.

What good leaders do:

Name the standard. Behaviour is part of performance. No exceptions.
Give clear feedback. Describe impact, set expectations, agree measures.
Support change. Coaching, mentoring and regular check-ins.
Hold the line. If behaviour does not change, act. Role model fairness.
Repair the team. Rebuild safety: debrief, reset norms, invite voice, recognise contribution.

A simple checklist for your next review:

Are any teams hitting goals while bleeding talent?
Do complaints cluster around one high performer?
Do you explain away someone’s behaviour because of their results?
Do people feel safe to disagree with this person?
If this person left tomorrow, what would actually get better?

Final thought

No-one is irreplaceable. Culture is.

Protecting toxic stars trades today’s numbers for tomorrow’s trust, creativity and growth.