Why Traditional Tactics for Handling High-Performing Toxic Employees Often Fail
When it comes to high-performing toxic employees, the internet is full of advice. A quick Google search usually presents two paths: the first is to fire them — immediately and decisively — because their behavior will rot your culture from the inside out. The second is a familiar list of human resources (HR) procedures: performance improvement plans (PIPs), documentation, coaching, and eventual disciplinary action if necessary.
While both approaches have merit, they often miss a critical nuance: these employees don’t operate by the same rules as everyone else. And that’s exactly why traditional tactics often fall flat.
The Frustration-Fueled Firing
Let’s start with the “just fire them” crowd. In theory, this sounds clean and decisive. But in reality, it’s rarely that simple.
Firing a high-performing toxic employee usually comes after months — sometimes years — of mounting frustration. Leadership has likely tried several interventions, none of which have stuck. By the time termination becomes the only viable option, it’s often done out of exhaustion rather than strategy.
And that’s a problem.
Firing someone with significant institutional knowledge, deep technical skill, or major client relationships can create ripple effects. Operational gaps, morale shocks, and even client loss can follow. These aren’t decisions to be made in haste. The firing might be necessary, but how you execute it is just as important as the decision itself. This is a time to slow down, not speed up.
This Isn’t Just an HR Problem — It’s a Business Problem
The biggest mistake companies make? Treating a high-performing toxic employee like any other HR issue.
The truth is, this is not a performance management problem — this is a business risk.
These individuals are often extremely intelligent and highly self-aware. They know how to play the game. They understand HR processes and are often skilled at navigating — or manipulating — them. They know a PIP is a box-checking exercise, and they’ll find a way to technically comply while avoiding meaningful change.
And if your company’s strategy is just to “follow the process,” you’ll likely find yourself stuck in an endless loop of well-documented inaction.
Why Traditional HR Tools Fall Short
HR tools and best practices are designed to work on the majority of employees — the 98% who respond to feedback, who want to grow, and who may just need support to get back on track.
But the high-performing toxic employee is part of the 2% who know the system — and know how to make sure it doesn’t work on them.
They hit their numbers. They deliver results. They make themselves indispensable. So every time a manager raises concerns, there’s always a counterpoint: "Yes, but look at what they achieved."
This is what makes them so difficult to manage. They’re not failing. They’re excelling — and they're eroding your culture, your team morale, and potentially your long-term business health at the same time.
A Strategic Approach, Not a Checkbox One
So what’s the answer?
It starts with reframing the issue. Stop thinking about this as a compliance problem. Think of it as a strategic business decision. Consider these steps:
Assess the true cost. Look beyond performance metrics. How many people have left because of this individual? How much time are managers spending managing the fallout? What’s the impact on collaboration, innovation, and morale?
Build a coalition. If the issue is persistent, it’s probably visible to more than one team. Bring together other leaders who’ve seen the impact and create a united front. Toxic behavior thrives in divided organizations.
Create a transition plan. If firing becomes the necessary step, prepare for it thoughtfully. Who will take over their responsibilities? How will you communicate the decision internally? What support will the team need afterward?
Don’t wait too long. The longer a toxic high-performer stays, the more damage they do — and the more others will question leadership’s courage or values. If you’ve made the decision, act with care but don’t drag your feet.
Final Thoughts
High-performing toxic employees are not an ordinary management challenge. They are business-critical issues that require more than a templated HR response.
Yes, it might end in termination. But the key is to ensure that every step leading there is deliberate, well-supported, and rooted in protecting the health of the business — not just checking boxes in a policy binder.
