When toxic employees' negative behaviors are tolerated, it can have a hugely detrimental effect on the culture of the company, decrease collaboration between teams, affect the way customers are treated, and so much more.
People in leadership positions will often look for a quick fix, but it’s not that simple. It’s easy to blame the hiring process or one individual employee, but unfortunately, the buck stops with you as the person who sits in the leadership position. You need to take full responsibility for your department's low morale or the organization's and urgently address the situation before all the good employees leave and the toxic remains.
Nothing will destroy a great employee's morale and inspiration faster than watching their employer tolerate and reward a bad employee.