The toxicity tax and the silent exit: a behavioural model of toxic leadership and coaching intervention

Purpose This study aims to examine how toxic leadership behaviours undermine organisational performance by eroding psychological safety and explores behavioural coaching as a participant-reported corrective intervention. Design/methodology/approach Drawing on two distinct data sets, employee narratives (n = 210) describing experiences with toxic supervisors and a longitudinal coaching programme evaluation (n = 145), this qualitative study uses thematic analysis to identify “safety-killer” behaviours and assess perceived coaching effectiveness. Using Threat-Rigidity Theory, the research examines how toxic leadership triggers behavioural withdrawal. Findings Five toxic leadership behaviours, leadership hypocrisy, inconsistent expectations, micromanagement, lack of strategic vision and blame-shifting, systematically dismantle psychological safety and trigger communication narrowing, “shadow functioning” and “Silent Exit”. Evaluation results indicate high participant-reported satisfaction: 97% of participants reported that developmental expectations were met, and 84% reported perceived performance breakthroughs. Research limitations/implications This study relied on self-reported data. Future research should use multi-source data and longitudinal designs to establish causal relationships. Practical implications Holistic coaching focused on supportive communication, reflective capacity and the resolution of background issues can mitigate dysfunctional leadership. Proactive coaching offers organisations a cost-effective alternative to the high turnover costs associated with the “Toxicity Tax”. Social implications Addressing toxic leadership reduces workplace harm, improving employee well-being and organisational culture. Originality/value This study disaggregates toxic leadership into specific “safety-killer” behaviours, integrates psychological safety and threat-rigidity theories to explain withdrawal patterns, and identifies coaching as a promising intervention to interrupt toxic behavioural cycles.