Leaders who play favorites at work think it promotes excellence and healthy competition. It also breeds resentment.

• Some leaders, including Airbnb's CEO, argue that favoritism can nurture excellence.
• But it can also breed resentment and further detachment among employees.
• Experts suggest balanced recognition to maintain motivation and prevent tensions.

Playing favorites at work is something some swear by, but it can be a risky strategy.

Airbnb's cofounder and CEO Brian Chesky, for example, told Fortune in November that he believed that nurturing high performers helps foster a culture of excellence.

"If you can't have favorites, if you can't say this is a high performer, and this is what excellence is, then you are going to be in big, big trouble," he said. "That's just not good leadership."

Chesky admitted that playing favorites "would be considered unfair and not systematic" at most companies and that doing so has to be done in the right way — free from bias and discrimination.

In fact, a bit of healthy competition can boost productivity and engagement among colleagues, but giving a select few people blatant and unfair preferential treatment will only fester resentment among teams in an already detached workforce.

Beth Hood, the founder and CEO of leadership and management training platform Verosa Leadership, told BI that favoritism in the workplace "is a slippery slope."

"While recognizing and nurturing high performers can drive excellence, if not handled carefully, it risks creating a culture of resentment and undermining team cohesion," she said.

"The challenge for leaders lies in striking a balance between celebrating outstanding contributions and maintaining the motivation and engagement of the wider team."

Nurturing high performers

Research from the Stevens Institute of Technology, the University of Illinois Chicago, and Hang Seng University of Hong Kong, published in the journal Personnel Psychology in 2022, found that one upside of workplace favoritism is that it can help clarify roles within teams and guide collaboration.

Hood said that for individuals who are highly motivated by positive reinforcement, "being openly acknowledged can act as a powerful catalyst for continued high performance. In this sense, leaders can use recognition as a tool to set a standard of excellence that inspires others to raise their game."

But favoritism can also get leaders into trouble.

Leena Rinne, the vice president of coaching at Skillsoft, a corporate training platform, told BI that favoritism is often "in the eye of the beholder."

"A leader can have really good intentions and still be perceived as playing favorites," she said.

"Recognition by a senior-level person does feel special," Rinne added. "So if that senior-level person is just even talking to or corresponding with or inviting people to different meetings, all of that can be perceived as unfair."

In a Harvard Business Review article published earlier this year, the authors pointed to the CEO of a Scandinavian robotics company who addressed just three of his nine direct reports in leadership meetings, and was seemingly unaware of the bias he was showing.

Pitting colleagues against each other — on purpose or not — can be hugely detrimental, Hood said.

"While in the short term this may seem like a powerful lever to pull, in the long term it is likely to cause significant performance challenges," she said.

Hood added: "It's a cynical leadership style that rarely ensures leaders can fully leverage everyone's potential, as it is predicated on a win/lose psychology."

Everyone appreciates recognition

Recognition is always appreciated, and it doesn't have to be big or costly.

Rinne said some of the most profound recognition she has heard people speak about years later is an email they received from their company's CEO.

"It takes almost no time on anyone's part, but really impacted how valued people felt, how seen they felt," she said.

If there are people in the organization shining brightly but not being recognized, you risk them feeling undervalued and ultimately leaving.

Rinne said praise works best when leaders communicate the link to performance, "ensuring that people feel that it's justified and fair."

Dilan Gomih, the founder and CEO of workplace performance and wellness consultancy Dilagence, told BI that words matter.

She said it's fine for leaders to favor people who are passionate about their work and do it tremendously well, but everyone has to be given the tools and opportunity to do so.

"It's got to be an equal playing field for anybody to be a favorite," she said.

Overall, Gomih said she struggled to see the benefit of having employees worry about being a favorite rather than about their work.

"Do you really want people wasting their mental energy thinking about favoritism? Or do you want their brains thinking about 'how do I perform my best at the job that I've been hired to do?'" Gomih said. "Because if they're doing that, it's win-win."

A better tactic may be to make that competition external and say, "It's us against the world," she said, to boost camaraderie and teamwork.

Rinne also said that the idea of "healthy competition" in companies could be reframed.

"It's always the team competition, the collaborative competition, that gets the organization the results we want," she said. "In my career, I haven't seen pitting team members against each other work in any context — except maybe the offsite scavenger hunt."

Airbnb declined a request to comment.