10 Mistakes That Can Sabotage Your Company’s Culture

Building a strong company culture takes intentional effort, but destroying it can happen quickly with a series of leadership missteps. Leaders often unknowingly create unhealthy environments by prioritizing short-term wins over long-term well-being or neglecting the needs of their teams. Here are 10 common mistakes that sabotage company culture—and how to avoid them.

1. Ignoring Feedback

When leaders dismiss or fail to act on employee feedback, it sends a message that their voices don’t matter. This creates frustration and disengagement, making employees feel undervalued.

Avoid It: Actively seek feedback and follow up with clear actions or explanations. Even if you can’t implement every suggestion, showing you’re listening builds trust.

2. Focusing Only on Results

Driving for results is important, but prioritizing outcomes over people leads to burnout and resentment. Employees in these environments often feel like disposable resources.

Avoid It: Balance performance goals with employee well-being. Recognize the effort behind results and ensure your team has the resources they need to succeed.

3. Tolerating Bad Behavior

Allowing toxic behavior—such as bullying, favoritism, or gossip—destroys trust and morale. Teams lose respect for leaders who ignore these issues.

Avoid It: Address toxic behavior immediately and set clear expectations for respectful communication and accountability.

4. Micromanaging

Hovering over employees and second-guessing their decisions undermines trust and stifles creativity. Teams in micromanaged environments often feel unmotivated and disempowered.

Avoid It: Set clear expectations, delegate effectively, and give employees the autonomy to make decisions. Trust their abilities and provide support when needed.

5. Lack of Transparency

When leaders keep employees in the dark about decisions, goals, or challenges, it breeds uncertainty and mistrust. Teams can’t align with a vision they don’t understand.

Avoid It: Communicate openly and consistently. Share both wins and challenges to keep everyone informed and engaged.

6. Overworking Teams

Constantly expecting employees to work overtime or take on excessive workloads leads to burnout and turnover. A “work harder” culture is unsustainable and demoralizing.

Avoid It: Promote work-life balance by setting realistic expectations and encouraging time off. Lead by example by respecting boundaries and prioritizing wellness.

7. Rewarding the Wrong Behaviors

Recognizing only results while ignoring teamwork, integrity, or collaboration incentivizes the wrong behaviors. This fosters competition instead of collaboration.

Avoid It: Celebrate not just outcomes but also the processes and values that contribute to success, such as teamwork and innovation.

8. Neglecting Career Development

When employees don’t see opportunities to grow, they disengage and eventually leave. A lack of focus on development signals that leadership isn’t invested in their future.

Avoid It: Provide growth opportunities through training, mentorship, and clear career paths. Show employees you’re invested in their success.

9. Failing to Lead by Example

Leaders who don’t live by the values they preach create cynicism and erode trust. Employees are quick to notice hypocrisy.

Avoid It: Model the behavior and values you want to see in your team. Consistency between your words and actions is key.

10. Ignoring Cultural Fit During Hiring

Hiring talented individuals who don’t align with the company’s values or mission can disrupt team dynamics and create conflict.

Avoid It: During the hiring process, assess candidates for cultural fit as well as skills. Align new hires with your company’s values to maintain a cohesive team.

Mistakes like these can undermine even the strongest organizations, creating environments where employees feel unsupported, disengaged, and undervalued. By recognizing these pitfalls and taking proactive steps to address them, leaders can ensure their culture remains a source of strength, not weakness. Culture is shaped daily by the actions of leaders—make sure yours are building it, not breaking it.