The Toxic High Performer: A Culture Killer in Disguise

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What the Kyle and Jackie O situation highlights

When we talk about toxic workplaces, we often picture obvious villains: aggressive managers, bullies, or people who openly disrespect others. But there’s a quieter, more insidious threat that many businesses overlook—the toxic high performer.

The recent situation involving Kyle and Jackie O at ARN is a stark reminder of what can happen when businesses prioritise results over behaviour, and why that choice can destroy the culture from the inside out.

The High Performer Paradox 

High performers deliver. They hit targets, bring in revenue, and often become indispensable to the business. So, when they behave badly, leaders face a dilemma: do we hold them accountable, or do we protect our bottom line?

Many businesses choose the latter. And that’s where the real damage begins.

When Jackie O allegedly made separate complaints to ARN management in July and August, the business faced a choice. Instead of investigating fully and addressing the concerns, it appears they did neither. The message this sent to every other employee was crystal clear: if you’re valuable enough, the rules don’t apply to you.

That’s not just unfair. It’s a culture killer.

Why Toxic Performers Are Worse Than You Think

A toxic high performer isn’t just one person behaving badly. They’re a psychological hazard that contaminates the entire workplace.

Here’s what happens:

  • Your good people leave. When employees see that poor behaviour is tolerated because someone delivers results, they lose faith in leadership. They stop believing that respect, fairness, or wellbeing actually do matter. The first chance they get, they’re gone. You don’t lose your toxic high performer – you lose your best people.
  • Psychological safety evaporates. Psychological safety is the foundation of a healthy workplace. It’s the belief that you can speak up, take risks, and be yourself without fear of punishment or humiliation. A toxic high performer destroys that. Their colleagues walk on eggshells. They avoid them. They stop speaking up. And when people stop speaking up, problems don’t get solved – they get buried.
  • The message to everyone else is unmistakable. “Results matter more than respect.” That’s the culture you’re building. And once that message takes hold, you have fundamentally shifted what your business values. It’s no longer about collaboration, trust, or doing things the right way. It’s about winning at any cost.
  • Compliance becomes a joke. If leaders won’t enforce standards with high performers, why would anyone else follow them? Your policies, your values, your code of conduct – they all become suggestions rather than rules. And that’s when you become vulnerable to real legal and reputational risk.

 

What ‘Required Action’ Actually Looks Like 

When psychological safety concerns are raised, employers have a duty of care. That doesn’t mean you have to fire the person. But it does mean you have to act.

Required action means:

  • You don’t minimise it. You take the complaint seriously, regardless of who made it or who it’s about.
  • You don’t wait. You investigate promptly. Delays send a message that the concern isn’t urgent.
  • You don’t treat it as “a personality issue.” This is a workplace conduct issue, and it needs to be managed as such.
  • You assess the risk. What’s the impact on the person who complained? On their team? On the broader culture?
  • You respond proportionately. That might mean coaching, a formal warning, changing reporting lines, or in serious cases, termination. The response should match the severity of the behaviour.
  • You put controls in place. Clear expectations, supervision, documentation, and consequences if the behaviour continues.
  • You demonstrate what you did and why. You can’t just handle it quietly. People need to see that you took action.

The ARN situation suggests that very little of this happened. Complaints were made. It seems they were not investigated fully. And life went on. That’s not duty of care. That’s negligence.

The Real Cost of Protecting Toxic High Performers 

Leaders often think protecting a high performer is the smart business decision. They’re wrong.

Yes, you might lose some revenue short-term if you hold them accountable. But here’s what you gain:

  • Retention of your best people. Your good employees stay because they trust that leadership actually cares about culture.
  • Genuine psychological safety. People speak up. Problems get solved early. Innovation happens.
  • A sustainable culture. You’re not building on a foundation of fear and resentment. You’re building something that lasts.
  • Legal protection. When you can demonstrate that you took concerns seriously and acted appropriately, you’re protected if things escalate.
  • When employees see that standards apply to everyone, they believe in your values. They’re more engaged, more loyal, and more productive.

The Early Warning Signs 

Before a situation becomes as public as the Kyle and Jackie O case, there are usually early warning signs:

  • Increased gossip and conflict around one person
  • People avoiding certain individuals or teams
  • “Jokes” that regularly cross the line
  • Spikes in sick leave or resignations from one team
  • People stop speaking up in meetings

If you’re seeing these signs, you’ve waited too long already. The goal is to spot the pattern early and intervene with clear expectations, coaching, and consequences.

What This Means for Your Business

If you have a high performer who’s also toxic, you have a choice to make. And it’s not really a choice between protecting them or losing revenue. It’s a choice between short-term comfort and long-term culture.

Because here’s the truth: a toxic high performer is still a psychological hazard. And often, they’re a culture killer.

If you excuse their behaviour, you’re not just protecting one person. You’re telling everyone else that results matter more than respect. You’re saying that psychological safety is a nice idea, but not really a priority. You’re building a culture where people are afraid, disengaged, and looking for the exit.

That’s not a sustainable business. That’s a ticking time bomb.

Moving Forward 

Wellbeing as a priority isn’t a statement. It’s action. And it means the standard applies to everyone.

If you’re struggling with a high performer who’s also toxic, or if you’re worried about your culture more broadly, it’s time to act. Assess the risk. Respond proportionately. Put controls in place. And be able to demonstrate what you did and why.

Because in the end, your people are your business. And no single person’s results are worth sacrificing that.

Learn more from my interview on Ticker:

https://www.youtube.com/watch?v=e-uoOFJaO6Q&t=15s 

 

About the Author 

Catie Paterson is an HR consultant specialising in workplace wellbeing, psychological safety, and leadership development. She works with small to medium businesses to create cultures where people can thrive and businesses can grow. Learn more at bluekite.au

 

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What the Kyle & Jackie O Issue Means for Employers and Workplace Culture

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Learn what the Kyle & Jackie O means for employers, including workplace culture, psychological safety, contract clauses, employee support, and how to reduce workplace risk. 

The recent Kyle & Jackie O issue has sparked strong public reaction and raised important questions about workplace culture, psychological safety, leadership behaviour, and employer responsibility. I was also interviewed on Ticker on this topic and shared commentary on social media because this is about more than headlines. It is a reminder for employers to take workplace conduct, risk, and culture seriously.

For business owners and leaders, this is not just a media story. It is a practical example of why workplace culture, employee wellbeing, and clear behavioural expectations matter.

 

Why this matters for workplace culture and employers 

When high-profile workplace conduct issues become public, they can damage more than reputation. They can affect:

  • Workplace culture and employee trust
  • Psychological safety at work
  • Staff engagement and retention
  • Brand reputation and stakeholder confidence
  • Legal and compliance risk

Employees notice how leaders respond. They watch whether concerns are taken seriously, whether standards are applied consistently, and whether the business acts early or waits until the issue becomes bigger.

 

Key workplace lessons for business owners

There are several clear lessons for employers from situations like this.

1. Workplace culture is shaped by what leaders tolerate 

A healthy workplace culture is not built by a values statement alone. It is built by what leaders allow, ignore, excuse, or address. If poor behaviour is overlooked because someone is influential, profitable, or high-profile, that sends a message to the rest of the business.

2. Psychological safety at work must be genuine 

If employees do not feel safe to raise concerns, issues often stay hidden until they escalate. Businesses need reporting pathways that are trusted, clear, and free from fear of retaliation.

3. Workplace policies need to be lived, not just written 

Many employers have policies on paper, but they are not embedded in leadership practice. Policies on bullying, harassment, discrimination, code of conduct, and complaint handling need to be current, clear, and actively used.

4. Leadership capability reduced workplace risk 

Managers need to know how to respond when concerns are raised. Delayed action, poor communication, emotional responses, or lack of confidentiality can increase legal risk and damage trust.

 

What employers do now

If this issue has made you think about your own business, there are practical steps you can take.

Review your workplace policies and processes  

Make sure you have:

  • A current code of conduct
  • Clear workplace behaviour expectations
  • Bullying and harassment policies
  • Complaint handling and investigation procedures
  • Training for leaders and managers
  • A current WHS policy that includes psychosocial safety and processes that support psychological safety at work

Assess your workplace culture honestly 

Ask yourself:

  • Do employees feel safe speaking up?
  • Are standards applied consistently across the business?
  • Are poor behaviours addressed early?
  • Do leaders role model respectful behaviour?

A policy review is important, but a culture review often tells you where the real risk sits.

Act early when concerns are raised

Early intervention matters. That may include:

  • Listening carefully to concerns
  • Protecting confidentiality where possible
  • Assessing risk quickly
  • Investigating appropriately
  • Taking fair and proportionate action

 

How to support employees during workplace conduct issues 

Supporting individuals is a critical part of managing workplace conduct concerns. That includes the person raising the issue, the person accused, witnesses, and any team members affected by the situation.

Practical support may include:

  • Access to counselling or an Employee Assistance Program
  • A clear internal contact person
  • Regular wellbeing check-ins
  • Temporary changes to reporting lines or work arrangements
  • Protection from victimisation or retaliation

Support should be practical, not just a process. Employees need to know the business is taking both the individual’s wellbeing and the process seriously, and that they have a safe space to discuss concerns openly.

 

Agreement clauses that help manage workplace risk

Employment Agreements cannot prevent every issue, but the right clauses can help set expectations and support action when problems arise.

Depending on the role and the business, agreements may include clauses covering:

  • Compliance with workplace policies and procedures
  • Code of conduct obligations
  • Confidentiality requirements
  • Reputation and brand protection
  • Social media and public commentary expectations
  • Lawful and reasonable directions
  • Serious misconduct and disciplinary consequences
  • Respectful behaviour and workplace safety obligations

These clauses should align with your policies and be drafted carefully. Expectations need to be clear, practical, and enforceable.

 

How to mitigate workplace risk as much as possible

No employer can remove all workplace risk, but you can reduce the likelihood and impact of issues by being proactive.

Key risk mitigation steps may include:

  1. Set clear behavioural expectations from day one.
  2. Train leaders to respond to concerns early and appropriately.
  3. Keep workplace policies current, legally compliant and used.
  4. Create safe and trusted reporting pathways.
  5. Investigate complaints properly and fairly.
  6. Document actions, decisions, and outcomes.
  7. Review workplace culture regularly, not just compliance documents.
  8. Seek external HR or legal support when matters are sensitive or complex.

 

Final thoughts on workplace culture, risk and employer responsibility 

The Kyle & Jackie O issue is a reminder that workplace risk is not only about legal compliance. It is also about leadership, culture, employee wellbeing, and whether people feel safe at work.

The businesses that manage these situations best are the ones that do the work before a problem arises. They set expectations clearly, support people properly, and act early when something is not right.

If you are unsure whether your workplace policies, contracts, leadership capability, or reporting processes are strong enough, now is the time to review them.

If you want practical support reviewing your workplace policies, contracts, leadership capability, or workplace culture, Blue Kite HR Consulting can help you take a proactive approach before issues become bigger problems.

 

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Mandating Two Days a Week From Home: What Employers Need to Know About Upcoming Legislation

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Mandating Two Days A Week From Home: What Employers need to know about the upcoming legislation 

 

The world is evolving fast, and flexible work arrangements are at the centre of the conversation. As discussed in my recent Ticker News interview and shared across LinkedIn, Facebook and Instagram channels, the question of whether working from home two days a week should be a legal right is now being debated at the Fair Work Commission, and the Victorian Parliament mandated two days a week last week. 

 

Why is Change Happening? 

The push for stronger work-from-home (WFH) rights is a direct response to the shift in employee expectations since the pandemic. Flexibility is no longer a perk; it’s a key factor in attracting and retaining talent. However, inconsistent practices and a lack of clear guidelines have left both employers and employees uncertain about their rights and obligations. The Fair Work Commission’s current test case, brought by the ACTU and other advocacy groups, aims to clarify what counts as “reasonable business grounds” for refusing WFH requests and could set a new national standard.

 

What Could the New Laws Mean?

If the proposed legislation passes, employers may be required to offer eligible employees the right to work from home at least two days a week, unless there are clear, well-documented business reasons to refuse. Victorian legislation goes even further, requiring detailed documentation and extra protections for carers, people with disabilities, and other vulnerable groups. Businesses will need to update their policies, train leaders, and ensure compliance at both the state and federal levels.

Which Law Takes Precedent?

In Australia, Commonwealth (federal) law generally overrides state law, but if the Victorian law offers greater protections for employees, businesses should adopt the higher standard. For employers, the safest approach is to comply with whichever law benefits employees most to reduce risk and demonstrate a commitment to workplace wellbeing.

 

Does This Affect All Businesses? 

Absolutely. Whether you’re a small business with just a handful of staff or a larger organisation, these changes will apply to you. There are no exemptions for small businesses, and all employers will need to review and update their flexible work policies and practices.

 

What Should Employers Do Now? 

  • Review and update your flexible work and remote work policies.
  • Train leaders to handle requests fairly and document decisions thoroughly.
  • Keep detailed records of all flexible work requests and reasons for any refusals.
  • Monitor government updates and be ready to adapt quickly.

Final Thoughts

As I shared on Ticker News and across my social channels, the move towards mandating two days a week of remote work is making compliance harder than ever for businesses, especially those on the smaller side. Businesses should take a proactive approach, using legislative changes as an opportunity to attract and retain top talent—setting themselves up for long-term success.

Want to discuss what these changes mean to your business? Get in touch or follow Blue Kite on LinkedIn, Facebook and Instagram.

 

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Psychological Safety Laws: What Every Australian Small Business Needs to Know

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From December 1, 2025, Victoria joins the rest of Australia in enforcing psychological safety laws, putting workplace wellbeing front and centre for every business

 

But even before this milestone, every employer nationwide has a legal responsibility to manage psychological risks under work health and safety (WHS) laws. For small and medium businesses, this isn’t about red tape – it’s about protecting your people and your business.

 

What is Psychological Safety? 

Psychological safety means actively managing work-related risks that can harm mental or physical health. These hazards can include:

  • Excessive or unpredictable workloads
  • Unclear job roles or conflicting expectations
  • Bullying, harassment, or aggression
  • Isolated or unsupported work
  • Lack of recognition or support
  • No control over how work is done
  • Poorly managed change
  • Exposure to traumatic events or customer aggression.

 

Why Victoria’s Change Matters – And Why It’s National 

From December 2025, WorkSafe Victoria expects employers to show clear, documented efforts to manage psychosocial risks through risk assessments, staff consultation, practical controls, training, reporting, and regular review. But this approach is already in place across most of Australia. Inspectors are increasingly focusing on psychological safety, and penalties for non-compliance are steep.

 

The Risks of Ignoring Psychological Safety 

Failing to address psychosocial hazards can lead to:

  • Improvement or prohibition notices
  • Fines (up to millions for serious breaches)
  • Prosecution of directors or officers
  • Expensive, complex WorkCover claims
  • Civil claims and reputational harm.

Doing nothing is far riskier – financially and legally – than taking simple, proportionate action.

 

Spotting Hazards in Your Workplace 

Psychosocial risks rarely announce themselves. Warning signs include:

  • High turnover or absenteeism
  • Frequent complaints about workload or fairness
  • Staff showing visible stress or withdrawal
  • Unmanaged customer blow-ups
  • Confusion about roles
  • “Always on” expectations
  • Bullying or incivility
  • Change fatigue.

A short, honest conversation with your team can reveal more than any survey.

 

Practical Tips for Small Business 

You don’t need a big HR department – just some simple, repeatable steps:

  1. Talk to Your Team—And Act:
    • Regular check-ins (even 10 minutes) on workload, stress, and behaviour
    • Listen, spot themes, and make at least one visible change.
  1. Know Your Top 3–5 Risks:
    • Use existing info (incidents, feedback, complaints) to identify main hazards.
  1. Put in Proportionate Controls:
    • Set limits on workload, clarify roles, define acceptable behaviour, and introduce practical supports.
  1. Support Your Supervisors:
    • Brief managers on spotting risks and having supportive conversations.
  1. Make Reporting Simple:
    • Clear ways to raise concerns, protect privacy, and follow up.

 

The Benefits of Getting This Right

Managing psychological safety well means:

  • Lower turnover and absenteeism
  • Reduced insurance and claim costs
  • Better customer service
  • Stronger reputation
  • Healthier, more engaged employees

Victoria’s new law is a reminder: psychological safety isn’t a “nice to have” – it’s an essential business practice. Protect your people, protect your livelihood, and make psychological safety business as usual.

 

To learn more about how Blue Kite can help to make your business psychologically safe, get in touch with Catie Paterson Blue Kite  today. 

 

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