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Enforcing policies or workplace rules consistently is critical for a number of reasons. The legal reasons include avoiding claims of discrimination through unequal treatment. A discrepancy in the enforcement of a rule, especially if a minority or other member of a protected class is treated more harshly, can result in claims of discrimination.
Another reason is simply that unequal treatment can negatively impact employee morale, resulting in lost productivity or even increased turnover. Supervisors may believe that favoring a particular employee won't hurt anything — and they may be correct in the legal sense, if no discrimination claims arise. However, other employees will certainly notice the favorable treatment, and may begin to feel resentful that they are subjected to rules or requirements while others are given a pass.
Fairness vs. favoritism
Favoritism can be a major problem if it isn't rooted in legitimate business concerns. For example, if a supervisor favors a top performer by promoting her or giving her choice assignments, the organization has a legitimate business reason for doing so: the individual has earned top treatment based on performance. On the other hand, a supervisor who offers choice assignments to an individual because they are friends is probably asking for trouble.
Unfair favoritism is likely to damage employee morale, causing employees to become frustrated and unhappy when they observe preferential treatment. Favoritism can also negatively impact the productivity of both the favored and not-favored employees. Employees who are not favored may eventually discouraged, feeling that no level of performance will earn them the treatment that favored individuals receive, while favored employees may develop a mentality of entitlement. They may believe their opinions and needs are more important than those of their coworkers. Favored employees might feel that their preferred status gives them some kind of immunity from performance standards. Conflicts may even develop among teammates who recognize and begin to resent preferential treatment given to certain individuals. It could even lead to the stifling of new ideas as employees who are not favored see their contributions ignored.
Either way, favoritism has the potential to damage employee relations. When employees are unhappy about unfair or unequal treatment, they are likely to complain among themselves. These discussions about managers may even be protected under the National Labor Relations Act (NLRA), which protects employees' rights to discuss wages, hours, and working conditions.
Some forms of favoritism are not necessary. For example, employers favor applicants who have more work experience or higher academic degrees. While employers may not think of this as favoritism, it is a legitimate form of preferential treatment based on prospective employees' business qualifications.
When not based on business considerations, however, favoritism can invite questions about a company's ethics, decrease employee morale, and even lead to litigation. If showing of favoritism results in treating certain employees differently in terms of discipline, this could lead to legal liability for the organization. Suppose a favorite employee comes in late. Although the supervisor talks to her about it, she is not disciplined. When another employee comes in late, he is disciplined for it. Same infraction, different discipline. This lack of consistency in imposing discipline could be a legal issue if the second employee happens to be 40 years old or older, or a minority, and claims that the discipline is pretext for discrimination.
The power of perception
The mere perception of favoritism can damage morale as well as a supervisor's credibility. Employers can limit the chances that employees mistakenly perceive favoritism by making sure performance standards are clear. Employees should understand the objective measures that determine advancement, perks, and compensation. Supervisors should invest time to develop relationships with all employees, not just those to whom they can relate or with whom conversation comes easily.
Favoritism may arise in any number of areas, including unequal enforcement of dress codes, failure to enforce productivity expectations, or unequal enforcement of working hours (if one employee often arrives late or leaves early without apparent consequences, while others are given warnings for the same conduct). Nearly any workplace policy or expectation can be unequally enforced, resulting in favoritism (whether actual or perceived).
Even if an employee is a star performer, the supervisor must be consistent in addressing problems. Otherwise, the star performer might even start taking advantage of the situation. If a problem starts small (but is not addressed) and gradually becomes worse, the supervisor may have a more difficult time raising the issue after letting it slide for so long. Even worse, the favored employee might listen to the warning but continue to violate the rules, creating an even more uncomfortable situation for the supervisor (and creating even more dissent among other team members).
Consistently enforcing policies, regardless of employee status, class, or performance, is key to ensuring fairness and preventing the perception of favoritism or discrimination. Encouraging employees to report any concerns can also help ensure uncover any perceived favoritism before it does major damage to employee morale or productivity.