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

 

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.

 

Beyond Physical Safety: Addressing Psychosocial Risks for a Thriving Workplace

The conversation around workplace safety has gone beyond tangible, physical risks to include mental and emotional health and well-being. We’ve recently been faced with the term ‘psychosocial hazards’ – a concept gaining ground, not just in occupational health discussions, but also in boardroom agendas across Australia. 

While traditional safety measures focus on preventing physical injuries, psychosocial hazards highlight the more subtle, yet equally detrimental, aspects of work life that can affect an individual’s health and wellbeing. 

They include a blend of both psychological and social elements in the workplace, extending from job design and work management to social interactions among colleagues. 

While these hazards might not always manifest as visible injuries, they can lead to significant stress, mental health issues and decreased productivity. And that’s crucial for businesses to understand. 

With a focus on this topic, we aim to shine a spotlight on these ‘silent stressors’, making a case for their recognition, understanding and proactive management in the workplace. 

Unpacking Psychosocial Hazards: The Categories Simplified

When we talk about workplace dangers, images of heavy machinery, electric risks, or physical strain might come to mind. However, psychosocial hazards, although less visible, can be just as harmful. 

They’re deeply intertwined with the way work is designed and managed and the interpersonal relationships within the workplace. 

To help businesses better understand these hazards, we’ve simplified them into three broader categories: 

1. Work Design and Management 

This category focuses on the tasks at hand, how they’re structured and the autonomy an employee has.

Job Demands: A balanced workload is essential for the well-being of employees. Extremes, whether too much work or too little of it, pose risks. For instance, an employee might face excessive demands during peak business seasons and then have minimal tasks during slower periods.

 An OECD study reported that on average about 13% of Australian employees work over 50 hours weekly, risking stress and fatigue. Conversely, too little work  can lead to disengagement or feelings of insignificance.

Low Job Control: Job satisfaction often depends on the control employees have over tasks. Low job control means workers can’t decide how or when they work. It’s different from having set tasks or structured job responsibilities; it’s about constantly feeling restricted.

The Australian Bureau of Statistics revealed that 38% of employees didn’t have authority over their work, which can reduce job satisfaction. Recognising and rectifying this hazard is crucial for maintaining a motivated and engaged workforce.

Lack of Role Clarity: The certainty and understanding of one’s role within an organisation are critical to effective job performance. When employees are unsure about their job description, their responsibilities, or the expectations set for them, it leads to a lack of role clarity. This isn’t just about occasionally facing complex tasks; the issue becomes hazardous when the ambiguity is extreme, consistent, or recurrent.

Inadequate Reward and Recognition: Job satisfaction is a fine balance between an employee’s efforts and the recognition they receive. This can range from awards to simple verbal praise. Overlooking recognition can become problematic if it’s a regular or long-standing issue.

Consistent employee recognition can lead to significant improvements in the workplace. Doubling the number of recognitions each week, can improve work quality by 24%, reduce absenteeism by 27%, and decrease staff turnover by 10%.

Poor Organisational Change Management: Change is inherent to organisational growth. But how that change is managed determines its success and the impact on the company’s workforce and productivity. 

A staggering 70% of change initiatives fail, often due to employee pushback and weak management. Poor organisational change management includes transitions that are haphazardly planned, communicated, supported, or executed. It isn’t about a decision that isn’t well-received. Poor change management becomes a significant psychosocial hazard when it’s notably flawed, sustained, or a regular occurrence.

 

2. Social and Organisational Context

This category focuses on the social fabric of a workplace, which plays a pivotal role in employee wellbeing.

Poor Support: Every individual relies on support systems within the workplace. These systems constitute the backbone of daily operations and overall job satisfaction. ‘Poor support’ goes beyond the inconvenience of waiting for a colleague to wrap up a meeting. It’s the persistent and profound lack of assistance from peers, supervisors, or even the deficiency of resources required for efficient job performance.

When the lack of support becomes regular, acute, or sustained, it goes from being a mere inconvenience to a notable psychosocial hazard. The consequences are many – from declining morale to reduced productivity and increased turnover.

Poor Organisational Justice: ‘Organisational justice’ really boils down to fairness at work. It’s about how employees feel they’re treated by the company, its rules, and the bosses. It’s not just about small problems, like not getting the work shift you wanted. It’s about bigger issues where workers often feel ignored, unvalued or mistreated.

Recognising and addressing these issues of organisational justice is about cultivating a culture where every employee feels integral to the success of the organisation.

Conflict or Poor Relationships: Having a good working relationship with colleagues is key to a positive workplace. But sometimes, behaviours that hurt others creep in. These can range from:

• Violence and Aggression: Physical or verbal acts that intimidate or harm.
• Bullying: Repeated actions that make someone feel belittled or unsafe.
• Harassment: This includes unwanted behaviours based on gender, race, age, ability, and other personal factors.
• General Workplace Issues: Everyday conflicts or misunderstandings that spoil relationships and teamwork. 

It’s important to understand that we’re not talking about small, isolated incidents. It’s about serious behaviours that persistently disrupt the workplace and strain professional relationships.

Violence and Aggression: This refers to situations where an individual faces abuse, threats, or physical assaults while on the job. In addition to the immediate physical harm, the psychological impact can be long-lasting and severe, posing significant health and safety concerns.

Business owners must address and manage the risks associated with violence and aggression in the workplace. This responsibility extends not just to conflicts among employees but also involves interactions with external individuals, such as customers and clients. Ensuring a safe environment for all is paramount, and businesses must be proactive in mitigating these risks.

Bullying: Would it surprise you to know that almost half of all Australians will be bullied in some way? 

Workplace bullying is characterized by ongoing, unwarranted actions aimed at an individual or a group of workers. It’s not a simple disagreement or one-off incident; it’s a consistent pattern of behaviour that can deeply affect those on the receiving end. The consequences of bullying extend beyond emotional distress; it can also lead to tangible physical harm, elevating it to a critical health and safety concern.

Businesses are obligated to identify, address, and manage the threats associated with bullying in the workplace. Every employee has the right to a safe working environment, and businesses need to step up and ensure this protection.

Harassment (including Sexual Harassment): Harassment in the workplace, whether it’s based on gender, race, age, ability, or other personal factors, is a pressing concern. It creates an environment of fear, mistrust, and discomfort, affecting not only the targeted individuals but also those around them.

Workplace sexual harassment is particularly severe and unacceptable. It can manifest in various ways: some actions are blatant, while others might be more hidden or insidious. Whether it’s a repeated pattern or a single incident, the effects are profound. Such harassment traumatizes the direct victim and can also deeply affect those who witness it.

By addressing harassment head-on and fostering a culture of respect and safety, businesses not only comply with the law but also create a healthier, more productive work environment.

 

3. Work Environment and Conditions

This category focuses on the actual conditions and environments where work is performed. 

Remote or Isolated Work: Remote or isolated work refers to jobs where employees are separated from the help or company of others due to the location, timing, or the kind of task they’re performing. This type of work might involve extensive travel, limited resources, or sparse communication options. It poses unique challenges, demanding both workers and employers to adapt and ensure safety and efficiency.

Poor Physical Environment: A poor physical environment at work refers to situations where workers consistently face unpleasant, substandard, or even dangerous situations. This could be anything from poor lighting and ventilation to exposure to harmful substances. 

When such conditions are extreme, persistent, or a regular occurrence, they transform from mere annoyances into significant psychosocial hazards. Addressing these issues is crucial for the well-being and safety of employees and their overall productivity and morale. 

Traumatic Events or Material: Being exposed to traumatic events or material at work refers to facing situations or content that deeply distress or shock. Whether it’s witnessing an unsettling incident, investigating a harrowing case, or consistently being exposed to disturbing materials, such experiences can have profound psychological impacts on workers.

Recognising and addressing the risks associated with such traumatic exposures is crucial. It safeguards the mental well-being of employees, ensuring they can work effectively and healthily.

Understanding these categories helps businesses take a holistic approach to identifying potential problems. It’s the first step in ensuring a healthier, more supportive, and productive work environment.

Why Should Busineses Care?

At its core, a business thrives on the well-being and productivity of its employees. Addressing psychosocial hazards isn’t merely about ticking off compliance boxes. It’s a strategic move towards creating a thriving, positive work environment. 

When businesses prioritise the mental and physical health of their employees, they directly boost workplace morale. This proactive approach not only curbs absenteeism but also reduces staff turnover, saving on recruitment costs and preserving organisational knowledge. 

Moreover, in an age where reputation is everything, a company known for its commitment to employee well-being stands out. It attracts top talent and earns respect in the marketplace. In essence, by addressing these risks, businesses are investing in their most valuable asset – their people.

Taking the Next Steps

Identifying psychosocial hazards is just the beginning. The true challenge lies in continuous vigilance and responsive action. Businesses should engage in regular evaluations to create a workplace that is not only safe but one that thrives. 

These assessments should be tailored to the unique dynamics of each workplace. Coupled with this, fostering open communication channels is vital. Encouraging employees to voice concerns or share experiences can unearth potential issues before they escalate. This dialogue builds trust and emphasises the organisation’s commitment to its workforce. 

Lastly, having proactive measures in place – whether it’s training programs, mental health support, or clear policies – can pre-emptively address potential risks. By taking these steps, businesses are not just averting problems; they’re sculpting a culture of care and inclusivity.

If you would like to chat further about how you can ensure psychosocial safety  in your workplace, book in a free 30-minute consultation here.