Ever walked into your office and felt like you’ve time-traveled back to high school? The feeling after knowing the cool kids’ table is still a thing, except now it’s the corner office or the  manager’s inner circle. If this sounds familiar, you’re not paranoid, you’re probably dealing with cronyism, where promotions seem to go to the boss’s golf buddy, and the best projects land in the lap of someone who’s hardly qualified. Meanwhile, you're grinding away, hitting targets, delivering results, and wondering if you accidentally signed up for the corporate version of a rigged game. It's as toxic as it sounds

"It's not what you know, It's who you know… and how close they are to the boss."

In a healthy workplace, it's just a phrase, right? In a crony workplace, it's the truth. 

What is Cronyism?

Cronyism isn’t just “networking gone wrong” or “helping out a friend.” It’s a sneaky system where people in power hand out perks, promotions, raises, assignments, to their “buddies", regardless of whether they deserve it. Think of it as nepotism’s uglier cousin, but instead of family ties, it’s all about loyalty to the gang. It’s the workplace equivalent of picking your bestie for the dodgeball team, even though they can’t throw to save their life. It's when personal loyalty and connections outweigh competence and qualification. It’s not “he fits our culture.”Sounds harmless. But it's a gateway drug. A culture built on recycled trust, not earned merit. It’s blatant favoritism. 

It's the workplace equivalent of picking your bestie for the dodgeball team, even though they can’t throw to save their life. Cronyism thrives in environments where fairness takes a backseat to personal connections. It’s not about who’s qualified; it’s about who’s liked. 

And for HR folks, this is the wake-up call. 

Cronyism doesn’t just annoy employees; it kills morale, tanks productivity, and makes the company look like a game show, a bad one. It isn’t just unfair, it’s a lawsuit waiting to happen. Employees who feel sidelined start whispering about discrimination or favoritism. Before you know it, you’re dealing with legal headaches.

The damage shows in your attrition rate. In your innovation pipeline. In that awkward silence when someone says, “Why was he even hired?”

Signs of cronyism: The red flags you’re ignoring

Cronyism is subtle, and often disguised as “team chemistry” or “loyalty.”  Here’s what to look for, no sugarcoating:

• The same faces keep winning. Ever notice how the same people get the assignments, the promotions, or the “employee of the month” nod? The projects are always assigned to the same few people, regardless of their current workload or relevant expertise.
• Qualifications? What qualifications? Someone lands a role they’re wildly underqualified for, and their only credential seems to be their BFF status with the boss, no questions asked.
• Opaque decisions. Promotions or raises happen behind closed doors with zero transparency, you’ve got a problem. 
• Disciplinary actions: There is a clear inconsistency in how mistakes or policy violations are handled for different employees.

Cronyism isn’t always intentional. Sometimes managers don’t even realize they’re playing favorites, they just “trust” their buddies more. But good intentions don’t fix a broken system. 

Is cronyism in the workplace a wrecking ball?

Let’s talk about the fallout. Cronyism doesn’t just bruise egos; it’s a wrecking ball that smashes trust, productivity, and your company’s reputation. Here’s why it’s such a big deal:

• Morale takes a turn. When employees see unqualified cronies getting ahead, they stop trying. Why bother working hard if the game’s rigged? You’ll see disengagement, eye-rolling, and a whole lot of LinkedIn job searches.
• Talent flees. Your best people, the ones who actually know what they’re doing won’t stick around in a workplace that rewards loyalty over skill. They’ll jump ship to a company that values their work, not their ability to suck up.
• Innovation dies. Cronyism creates echo chambers. If the same buddies keep getting picked, you’re stuck with the same ideas. Fresh perspectives? Forget it. Your company will stagnate faster than a forgotten yogurt in the office fridge.
• Legal risks pile up. Favoritism can look a lot like discrimination, especially if the “in” crowd shares the same gender, race, or background. That’s a one-way ticket to lawsuits, bad PR, and a very awkward conversation with your legal team.

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How to stop cronyism in the workplace?

Storm the CEO’s office with a pitchfork, but the pitchfork should be strategic and smart. Here’s your game plan to root out favoritism and keep your workplace fair:

1. Make everything transparent

If decisions about promotions, raises, or projects are shrouded in mystery, you’re begging for cronyism. Be transparent and clear about promotions and roles. No more “surprise” promotions. Every job opening should be advertised, with clear qualifications and a fair application process. When someone gets a raise or a new role, there should be a paper trail explaining why. No, “They’re my buddy” doesn’t count. The documents should be well enough to support decisions.

2. Clear “communication”

You don’t need to be a jerk to point out cronyism, but you do need to be direct. If you see favoritism, address it, tactfully. If there's biasness visible in the organisation, call out, and ask your questions. Keep it curious, not accusatory. There should be respect in the conversation, there are times when leaders don’t realize they’re playing favorites. Nobody likes a lecture, don't start with logic and  or what “you should have done”. Before hand, teach them it isn't about the liking a same thing, but work to be done

3. Encourage feedback

Create anonymous channels for employees to report favoritism. Employees should feel confident in sharing if there is anything going with them, they'll trust the organization,and believe that they are important. If people feel safe speaking up, you’ll hear about cronyism before it festers. Employees should feel confident in sharing if there is anything going with them. This isn't about gossip; it's about providing an early warning system.

3. Diversify the inner circle

Rotate project leads. Don’t let the same people have all the assignments, be open to the team, give others a chance to shine, even if they’re not the boss’s go-to. If the same group always works together, you’re breeding loyalty over competence shuffle teams to keep things dynamic. Sometimes, the best way to break cronyism is to bring in new fresh faces and perspectives

4. Reward merit, not mates

Make sure the best person gets the job, not the best friend. Use clear, consistent criteria for performance reviews. No room for “but I like them.”, by standardizing evaluations. Go blind on names and personal details and start looking on resumes to focus on skills, not connections, that's when the people who deserve will get a chance. If someone does great work, shout it from the rooftops, give them the credit all deserved, not only to the “buddy”.

5. Lead by example

Set the tone. If you’re playing favorites, don’t be surprised when everyone else does too. Stay Neutral, don’t cozy up to one department. Be impartial, and don’t favor anyone.. If you preach fairness but promote your lunch buddy, nobody will take you seriously. So practice what you preach.

Final words: Play favorites and pay the price

Here’s the thing. If the company rewards cronies over competence, it is already in decline. It might look stable. It might even be profitable. But it’s leaking talent, credibility, and innovation with every friend-of-a-friend hire and HR is the first line of defense or part of the problem, because when the layoff list comes and it’s full of the non-cronies. HR is not just pushing paperwork or planning office parties, it's the gatekeeper of a company's culture 

This isn't about being a corporate cop or busting friendships. It's about ensuring fairness, fostering a culture of trust, and building an organization where talent, hard work, and innovation actually mean something. It’s about creating a workplace where everyone, not just the chosen few, feels like they belong and that their efforts are genuinely valued.

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