People play favourites. It’s part of life, and it is certainly something that happens in the workplace all the time. A survey found that 47% of employees believed their supervisor played favourites.
There are a lot of ways favouritism (nepotism, cronyism) affects a workplace. But it is not always a bad thing. There are varying degrees to which it can impact culture. There can be some positive effects. But, when negative impact starts to appear, it can be detrimental on culture and performance.
Below, we’ll define terms related to favouritism and then offer a recruiter’s perspective on how they can potentially turn into a problem:
In this blog:
- What is nepotism?
- What is favouritism?
- What is cronyism?
- How can favouritism, nepotism and cronyism affect the workplace?
What is favouritism?
Favouritism is the act of giving preference or preferential treatment to one individual at the expense of others. For example, a manager gives one employee all the best assignments or gives them better shifts. This can happen for many reasons. They could be friends outside of work, are family, or perhaps the favoured employee simply is a better worker. The reasons are endless.
What is nepotism?
Nepotism is a type of favouritism in which those in power favour friends or relatives by hiring them and giving them jobs. Hiring managers may choose to hire a friend or relative because they trust them, know them well, and believe they are a great fit for a job. It’s not always about them doing a favour or having ill intentions. But it can be.
What is cronyism?
Cronyism is the action of assigning friends, relatives, and associates to positions of power when they do not have the proper qualifications or experience. For example, a CEO gives a friend a management role even though they have no prior experience. This is something commonly associated with appointed positions.
How can favouritism, nepotism and cronyism affect the workplace?
The presence of nepotism, favouritism, and cronyism can all pose potential issues in the workplace. Here are some of the most common issues:
- Employees will feel unfairly treated: Since they feel that effort is not rewarded, they lose the drive to work hard and go above and beyond. Productivity and performance can start to suffer.
- No trust in leadership: You could lose your team. They will not have faith in your actions or words. A negative company culture could develop.
- You lose your most talented people: If a hard-working talent is passed over, they will see the writing on the wall. They will start to look elsewhere and will exit the company when the opportunity arises. You’ll experience increased turnover and be required to hire more often.
- Lower Morale and Engagement: When employees perceive that advancement is based on who you know rather than what you do, morale suffers.
- Reduced Productivity: Favouritism undermines the belief in fairness and can reduce motivation, leading to lower productivity and poorer quality work.
- You create skill gaps: Promoting individuals based on connection rather than competence can limit internal expertise. One survey found that of people who were hired via personal connections, about 33.1% felt underqualified for their job.
- Limited Innovation, Diversity of Thought: Favouring networked or connected individuals can block diverse talent and reinforce inequality. You risk losing out on alternative perspectives and innovation that can drive your company forward.
- Reputation, Legal & Compliance Risks: Legal risks and damage to the employer brand can follow when favouritism is perceived or actual. There is a potential for discrimination claims against your organization.
A final word about nepotism in the workplace
The act of hiring a friend or colleague is not an issue in itself. This happens all the time. It’s how you go about it that matters. Blatantly favouring someone you know, giving them preferential treatment, or assigning roles to them even if they are not qualified is when issues begin to arise.
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