Dealing with a toxic performer in your brokerage: A guide

Each month, Kate Teves, HR consultant, recruiter, and founder of The HR Pro, responds to Realtors’ inquiries on all things human resources. Have a question for Kate? Send us an email, or leave a comment below!

Every brokerage, team, law office, staging business, and even an HR consulting company values top performers—those who consistently meet or exceed expectations and sales targets and drive initiatives forward.

But occasionally, we all encounter an interesting problem—when a high achiever exhibits toxic behavior that negatively impacts team morale and the overall workplace culture while still delivering their personal KPIs.

Many business owners hesitate to address this issue, fearing the loss of the ‘Raincloud Rockstar,’ but fail to consider that overlooking poor behavior can lead to long-term damage internally and externally.

Your trusted and loyal employee

The challenge

Your team/brokerage has a salaried or hourly employee in a managerial, administrative, marketing, or client service role who excels in their job but has a consistently negative attitude.

Perhaps this person is dismissive of colleagues, resistant to collaboration, and has been the subject of multiple complaints regarding the remarks they make about their boss/colleagues, the work itself, or your hard-earned clients.

On a positive note, this team member is brilliant at their work, never misses a beat, catches your mistakes, and certainly adds to your productivity, which you do not want to lose.

The risks of inaction

Ignoring this behavior can lead to increased stress for you (the employer), high turnover among other employees, decreased workplace morale, loss of trust in senior leadership, and even potential harassment claims.

You now risk reputational harm, as negativity can spill into client interactions as well. To top it off, you increase your own workload because you do not want to upset or overwhelm the staff members and send them further down the downward spiral.

Author Perry Belcher said it best: “Nothing will kill a great employee faster than watching you tolerate a bad one.”

How to address it

Ask them what is wrong, and the sooner, the better

It sounds so incredibly intuitive, but unfortunately, in real-life situations, I have seen them a lot less often than I would like.

From simple misunderstandings to family issues to sick pets, there is usually a reason why someone’s attitude changed, and here is the other important part—you are legally expected to accommodate the employee to the point of undue hardship to the business, but you need to know about the reason for behavior first.

There is a phenomenal book I recommend to all leaders to read, Radical Candor by Kim Scott. Scott talks about approaching each situation from a place of care for the other person, truly wanting to support them and possibly guide them to a better outcome.

1. Set clear expectations: Schedule a private meeting to discuss their performance and behavior separately. Share specific examples, if possible, items that were said, questionable behavior that you want to address, complaints, etc. Reinforce your expectations that workplace culture and collaboration are as important as individual success, and it is the responsibility of all employees to look out for the good of the business since they rely on it for income, not the sole responsibility of the leader/manager.
2. Provide coaching and support: Depending on the reason for the chaos, you may gently nudge the employee to see a professional counselor, accommodate an alternative working schedule, or offer professional development, mentorship, or emotional intelligence training to help them improve interpersonal skills. Until we know what the root cause of the problem is, we will only focus on the symptoms without ever remedying the problem, which will most definitely keep the symptoms from returning (sometimes even worse than before).
3. Follow through on consequences: If there’s no improvement, consider progressive discipline up to termination to protect your team culture and the business’s long-term success.

Real-world example

A major real estate brokerage in Toronto had a top-performing marketing manager whose toxic attitude led to multiple resignations. Over time, the brokerage struggled to fill vacant positions, productivity declined, and eventually, the broker-owner had to step in, leading to costly operational disruptions. Addressing the issue earlier could have saved the company from financial and reputational harm.

Performance alone Is not enough

High performance should not be an excuse for tolerating poor behavior. Employers and managers who address toxic top performers proactively protect their business, culture, reputation, and long-term profitability.

Whether dealing with employees or independent agents, leaders must establish clear expectations, take complaints…