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.

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