In many organizations, there’s often that one “rockstar” employee: the high performer who delivers exceptional results, exceeds targets, and often becomes the go-to person in high-stakes situations. But what happens when that rockstar comes with, or develops a toxic attitude? They may be brilliant, but they’re disruptive, difficult to work with, or create tension within the team.
Managing a toxic rockstar is one of the toughest challenges a leader can face — but it’s one that must be handled swiftly and thoughtfully to protect the broader team and company culture.
1. Recognize the Signs of Toxicity
Before taking any action, it’s crucial to identify the specific behaviors that are causing harm. Are they belittling teammates? Undermining leadership? Refusing to collaborate? While their performance may be stellar on paper, their actions could be quietly poisoning the work environment. Listen to team feedback, observe interactions, and track behavioral patterns. Toxicity can show up as arrogance, manipulation, exclusionary behavior, or passive-aggressive communication.
2. Separate Performance from Behavior
It’s easy to get blinded by results. After all, if someone is closing deals, great at connecting with and serving clients, or bringing in high-value clients, it’s tempting to let their attitude slide. But make no mistake: toxic behavior costs more than it saves. It can drive away other talented employees, reduce morale, and even damage your brand internally and externally. Make it clear that great performance does not excuse poor behavior. Essentially, it is sacrificing long-term growth and success for short-term gains. It can be very damaging to the culture and undermine your leadership if left unaddressed which drives the productivity of the rest of the team down.
3. Have a Direct, Constructive Conversation
The first step toward resolution is a direct and respectful conversation. Avoid vague feedback — be specific about the behaviors that are problematic and the impact they’re having. Use “I” statements and frame it around expectations and the team’s wellbeing.
For example: “I’ve noticed that during meetings, your tone can come across as dismissive, which is affecting team morale. We value your expertise, but it’s important that collaboration feels respectful and inclusive.” Or something like, “I’ve noticed that you are completely resistant to any and all changes we are trying to make to move the firm forward.”
4. Set Clear Boundaries and Expectations
Once the issue is addressed, set clear expectations moving forward. Document these expectations and establish what behavioral changes are required. Be specific: “We expect active participation in team meetings that encourages input from everyone,” or “We expect respectful communication with all colleagues, regardless of role.” Set a timeline for reevaluation and ensure the employee understands that continued toxicity, regardless of performance, is unacceptable.
5. Offer Support and Resources
Sometimes toxic behavior stems from burnout, stress, or personal struggles. While it doesn’t excuse poor conduct, it’s worth exploring whether support such as coaching, training, or counseling might help. Offering resources shows that you’re willing to invest in their growth — but it also draws a clear line that the onus is on them to change. For instance, you might consider hiring a personal coach/consultant to give them an additional outlet to express their thoughts and feelings that might be impacting their ability to work effectively in your organization.
6. Monitor Progress and Follow Through
Accountability is key. Check-in regularly to evaluate progress. Are they making an effort to change? Are colleagues noticing an improvement? If behavior improves, acknowledge and reinforce it. If not, you must be prepared to follow through with consequences. Failure to act will send a damaging message to the rest of the team that toxic behavior is tolerated.
7. Don’t Be Afraid to Let Go
If the employee refuses to change or their toxicity continues to disrupt the team, it may be time to part ways — even if they’re a top performer. It’s a tough call, but one that often leads to long-term health for your organization. Many leaders report that once a toxic rockstar is removed, productivity, morale, and collaboration improve across the board.
Closing
Dealing with a toxic rockstar is a leadership test. It forces you to choose between short-term wins and long-term culture. The best leaders know that protecting the integrity and health of the team is more important than catering to one high performer. By addressing the issue head-on, setting clear expectations, and leading with fairness and firmness, you can turn a toxic situation into an opportunity for stronger, healthier leadership. Just like you probably tell your clients, play the long game.
Contact us at info@newplannerrecruiting.com if you would like us to help with your next financial planner hire.
Caleb and the New Planner Recruiting Team*
*AI assisted
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