Software Engineering

The Hidden Costs of Favoritism: Why SMB Leaders Should Focus on the Entire Team

In today's dynamic business environment, leaders are constantly seeking ways to enhance team productivity and morale. However, there's one subtle yet pervasive issue that can undermine these efforts: favoritism. While it might seem harmless or even natural to favor certain employees, the consequences can be far-reaching.
Published on
August 2024

In today's dynamic business environment, leaders are constantly seeking ways to enhance team productivity and morale.

However, there's one subtle yet pervasive issue that can undermine these efforts: favoritism.

While it might seem harmless or even natural to favor certain employees, the consequences can be far-reaching.

As highlighted by a recent Forbes article, "How Favoritism Impacts Employees And How Leaders Can Fix It," written by Duane Tursi, CEO, Ascension Group International, favoritism can have significant detrimental effect on teams. But there are ways in which business leaders can become more aware it and begin to address the issue.

The Ripple Effect of Favoritism

When leaders show preferential treatment to specific individuals, it doesn't just affect those in the spotlight.

This behavior can create a ripple effect that disrupts team harmony, lowers morale, and decreases overall productivity.

Over time, a culture of division and skepticism can develop, pushing talent away and eroding the foundational values of the organization.

The Misconception of Focusing Only on Top Performers

As highlighted by Mark C. Crowley, many companies invest heavily in developing individuals identified as "High Talent/High Potential" while neglecting the growth of others. This approach is a significant leadership mistake.

Every team member brings unique value, and by overlooking their potential, businesses miss out on opportunities for innovation, collaboration, and overall growth.

The Benefits of Focusing on All Team Members

By ensuring that all employees have equal opportunities for growth and recognition, leaders can foster a more inclusive and vibrant workplace.

This approach not only boosts morale but also promotes a culture of collaboration and innovation.

When every team member feels valued and supported, the entire organization benefits.

Steps Leaders Can Take

  1. Practice Self-awareness and Transparency: Recognize biases and maintain clear communication with the team.
  2. Create Equal Opportunities: Distribute challenging projects, training opportunities, and exposure to leadership fairly.
  3. Merit-based Recognition: Reward employees based on skills and performance, not personal relationships.
  4. Encourage Open Communication: Foster an environment where employees can voice concerns without fear of retaliation.
  5. Regular Feedback and Reviews: Conduct continuous and constructive performance reviews for all team members.
  6. Rotate Opportunities: Expose employees to different projects and roles within the organization.
  7. Leadership Training: Emphasize unbiased decision-making and the importance of fostering a positive team culture.

Building a Fair and Inclusive Workplace

Leadership is as much about recognizing our shortcomings as it is about guiding others. By addressing favoritism and actively working to create a level playing field, leaders can pave the way for a brighter future for their teams and their businesses.

For businesses looking to implement continuous performance evaluation and foster a culture of inclusivity, WorkStory is the ideal platform.

By providing tools for regular feedback, recognition, and growth opportunities, WorkStory empowers teams to thrive and businesses to succeed.

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Whenever you’re ready, here are 4 ways WorkStory can help you:

  1. The WorkStory Platform: Our all-in-one performance management solution. WorkStory makes it easy to gather continuous feedback, run 360 reviews, and track team progress—all in one place. Perfect for teams looking to move beyond traditional performance reviews.
  2. The Performance Review Builder Tool: Create customized performance reviews that fit your organization’s unique needs. Tailor the reviews to each role, streamline the review process, and focus on growth-oriented feedback.
  3. Performance Review Templates: Access a library of pre-built, best-in-class performance review templates that are ready to use. Whether you need templates for leadership, team members, or cross-functional roles, we’ve got you covered.
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