Managing the Unmanageable: A Manager’s Guide to Leading High-Performing Toxic Employees
There’s no training for this.
You’re a manager. You’ve worked hard, climbed the ladder, and now you’re leading a team. And somewhere along the way, you inherited (or hired) someone brilliant — someone who delivers incredible results — and also quietly (or not-so-quietly) erodes the team from the inside.
They’re not just difficult. They’re high-performing and toxic. And no one ever taught you how to manage that combination.
The Truth: This Isn’t Your Fault — But It Is Your Responsibility
Let’s start with what most people won’t tell you: the presence of a high-performing toxic employee is not a sign that you’ve failed as a leader. It’s a signal that you’ve entered a level of leadership complexity most managers aren’t trained for.
These employees aren’t inherently bad. Most don’t even know their behavior is a problem. They’ve been praised for outcomes and never held accountable for impact. They’ve been left unchecked — not because anyone wanted to ignore it, but because no one knew what to do about it.
What you allow will continue. And now it’s your move.
Why Traditional Tactics Don’t Work
You’ve probably already tried a few of these:
Giving subtle feedback
Referring them to HR
Starting a performance improvement plan (PIP)
Hoping things will get better
But here’s the hard truth: those strategies weren’t designed for this kind of employee. High-performing toxic individuals are often in the 2% who understand systems better than the people running them. They know how to look cooperative while resisting real change. They can be charming, compliant — and corrosive, all at the same time.
They require a different playbook. One that starts with you.
Step One: Stop Treating This as a Behavior Issue
It’s tempting to focus on the behavior — the eye rolls in meetings, the condescending tone, the backchannel complaints. But here’s the thing:
Behavior is the symptom.
Environment is the cause.
Ask yourself:
Has anyone ever actually told them the truth — in language they understand?
Are they reacting to dysfunction, poor leadership, or a misfit role?
Are you managing them the way they need to be managed, or the way everyone else is?
High performers often speak a different language. If you’re using vague HR scripts or “check the box” feedback, they’re not hearing you. And if they’re not hearing you, they’re not changing.
Step Two: Shift from Management to Strategic Resolution
Managing a high-performing toxic employee isn’t about “fixing” them. It’s about protecting the business, the team, and your leadership credibility.
That starts by reframing the goal.
Your job isn’t to fix them. Your job is to resolve the issue — whatever that takes.
That might look like:
A structured, high-context feedback intervention
A role redesign that better fits their strengths
A clear boundary with clear consequences
A well-planned exit that protects the team
But here’s the key: don’t do this alone.
You need executive support. You need cross-functional insight. And yes, you need HR — not to run the process, but to support a business-led strategy.
Because this isn’t just a personnel issue. It’s a business risk.
Step Three: Measure the Real Cost
Here’s what managers often miss: performance isn’t just about what someone delivers — it’s also about what they cost.
Ask yourself:
How much time are you spending managing this person’s drama instead of leading your team?
How many strong team members have left (or disengaged) because of their presence?
What’s the reputational risk if this behavior leaks outside the team — or the company?
Sometimes the numbers don’t show up on the balance sheet… until they do.
Step Four: Decide — and Act
Once you’ve gathered the facts, talked to your peers, and gotten leadership aligned, you’ll face a decision point.
Will you keep them and change the structure?
Will you coach them up with high-accountability support?
Will you transition them out — thoughtfully and strategically?
Whatever path you choose, act with clarity and confidence. The worst thing you can do is stall. Every month you wait, the damage compounds. Culture erodes. Credibility suffers. And your team watches.
You Don’t Have to Do This Alone
If you’re managing a high-performing toxic employee and feel like you’re out of options — you’re not. You’re just out of traditional options.
This is where outside support becomes critical. Not to replace your leadership, but to support it. To help you assess the true cost, diagnose the real root issue, and build a resolution strategy that protects your people, your performance, and your future.
Because what you allow will continue.
And great leaders don’t let toxicity thrive under their watch — no matter how talented the source.
