A growing body of research reveals a worrying trend: the rise of toxic leaders—those exhibiting narcissistic or psychopathic traits—is increasingly harming employee well-being and organisational performance. According to Prof Renata Schoeman, Head of Healthcare Leadership at Stellenbosch Business School, this style of toxic leadership creates a damaging ripple effect across organisations, affecting everything from work motivation to psychological well-being.
“Personality disorders in leadership aren’t just clinical curiosities. They have tangible and destructive impacts on organisational culture and employee well-being,” says Prof Schoeman.
The dark side of leadership
Toxic leadership, often driven by dark personality traits, is linked to high stress, depression, low job satisfaction, and high employee turnover. These toxic leaders create environments of fear, reduced psychological safety, and chronic disengagement. The prevalence of toxic leadership behaviours in the workplace has become a significant concern for organisational behaviour experts and human resource professionals alike.
“Leadership carries great responsibility,” says Prof Schoeman. “Recognising and addressing problematic traits like narcissism and psychopathy not only safeguards organisational health but promotes mental well-being and productivity.”
Research shows that up to 4% of business leaders may exhibit psychopathic traits—four times higher than the general population. Among CEOs, this figure is second only to prison inmates, where the prevalence reaches 15%. This alarming statistic highlights the need for better leadership effectiveness measures and more robust leadership development programmes.
Narcissism vs. psychopathy: know the toxic traits
Understanding the differences between narcissism and psychopathy is vital to prevent mislabelling and conflict. These toxic traits can significantly impact leadership behaviour and organisational justice.
Narcissists:
- Grandiose and entitled
- Crave admiration
- Lack empathy
- Hypersensitive to criticism
Psychopaths:
- Manipulative and remorseless
- Impulsive and callous
- Exhibit superficial charm
- Often aggressive and strategically calculating
“These traits—though counterintuitive—can sometimes be perceived as strengths in high-stakes environments,” explains Prof Schoeman.
Why toxic leaders rise
Despite the damage they cause, toxic leaders often climb the corporate ladder quickly. They appear fearless, decisive, and visionary, qualities traditionally associated with effective leadership. However, these leadership qualities often mask deeper issues that can lead to poor leadership and negative organisational outcomes.
“Narcissists and psychopaths can be brilliant strategists, capable of inspiring loyalty while manipulating others behind the scenes,” says Prof Schoeman.
Narcissistic leaders often deflect blame, hoard information, and isolate staff to maintain control. Psychopathic leaders, on the other hand, favour open bullying and calculated manipulation. Both leadership styles can lead to workplace incivility and a toxic workplace environment.
The cost to employees and companies
In South Africa, a third of employees cite toxic leadership as their reason for resigning. Work-related stress accounts for over 40% of workplace illnesses, and 1 in 4 workers has been diagnosed with depression. This emotional exhaustion and lack of work-life balance can severely impact employee motivation and overall job satisfaction.
“Their successes mask the long-term costs: suppressed innovation, low morale, high attrition, reputational damage and eventually financial decline,” Prof Schoeman warns.
The impact of toxic leadership extends beyond individual employees, affecting team morale and organisational commitment. This, in turn, can lead to decreased organisational performance and employee performance.
Spotting and stopping toxic leaders
If you suspect you’re dealing with toxic leadership, consider the following steps:
- Set clear boundaries and document interactions.
- Seek HR support or access employee assistance programmes.
- Focus on self-care, leaning on emotional and social networks.
- Evaluate objectively, separating performance from emotion.
If you’re a leader yourself and identify these toxic traits, self-awareness is key:
- Seek psychological support
- Ask for honest feedback
- Develop empathy and humility
- Establish checks and balances
What organisations can do
Companies can take proactive steps to address toxic leadership:
- Screen for dark traits using psychometric tools during hiring.
- Encourage anonymous feedback via exit interviews and tip lines.
- Support wellness, mental health, and flexible working environments.
- Hold leaders accountable through clear HR processes and legal interventions.
Organisations should also focus on leadership training and development programmes that emphasise ethical leadership and positive organisational culture. Implementing employee well-being programmes and promoting employee voice can help counteract the effects of toxic leadership.
“Recognising, intervening, and realigning is not optional,” concludes Prof Schoeman. “It’s crucial for sustainable, mentally healthy workplaces and overall workplace well-being.”
By addressing toxic leadership behaviours and promoting positive leadership styles, organisations can create a healthier workplace environment, improve job satisfaction, and boost overall organisational performance.
