When Favoritism Crushes Your Company: A Sales Leadership Lesson

Let me tell you a story about a lesson I learned the hard way - a lesson about how treating a top-performing salesperson differently can crush a company. It's a tale of mistakes, demotivation, and the toxic ripple effects of favoritism.

Crushing Goals but Crushing Morale: The Mistake

Early in my career as a sales leader, I made a seemingly harmless mistake. I thought, "If you crush your goals, you can do what you want." Little did I know that this simple idea could unleash a cascade of problems, impacting not just the individual but the entire sales team and the company culture.

1. Demotivation and Resentment

Favoritism, in any form, is a recipe for disaster. When a top-performing salesperson is treated differently, it breeds resentment and demotivation among other team members. The morale takes a nosedive, and suddenly, the high achiever becomes a source of frustration rather than inspiration.

2. Unhealthy Competition

In the pursuit of recognizing excellence, there's a thin line between healthy competition and toxicity. The moment favoritism comes into play, it sparks unhealthy competition among team members. Instead of fostering cooperation, the team is pitted against each other, creating a cutthroat environment.

3. Collaboration Breakdown

Success in sales often hinges on effective collaboration. Each team member brings a unique set of skills and experiences to the table. When one person is treated as exceptional, it disrupts the collaborative spirit. Others might feel left out, leading to breakdowns in teamwork and a less effective overall team.

4. Increased Turnover

One of the immediate consequences of favoritism is increased turnover. When team members feel unappreciated and undervalued, they start looking for opportunities elsewhere. The revolving door of talent becomes expensive, with recruitment costs skyrocketing.

5. Negative Company Culture

Favoritism doesn't stay confined to the sales team; it seeps into the company's culture. An atmosphere of unfairness compromises the principles of equality and fairness. It's not just a sales problem; it's an organizational problem.

6. Undermined Leadership Credibility

Leadership is built on trust and fairness. When one person is treated as an exception, it undermines the credibility of leadership. Team members start questioning the impartiality of decisions, leading to a breakdown in trust.

7. Impact on Customer Relationships

Salespeople, especially high performers, are often the face of the company to clients. If a favored salesperson interacts with clients, the perceived inequity extends beyond the team, affecting customer relationships. Satisfied customers are crucial, and favoritism can jeopardize that satisfaction.

The Wake-Up Call

So, the next time you're tempted to let your top salespeople have free rein just because they're exceeding their goals, think again. The consequences go beyond individual performance; they seep into the very fabric of your team and company culture. A more equitable approach not only avoids these pitfalls but fosters a healthier, more sustainable path to success.

If you found this lesson valuable, there are 100 more mistakes and learning lessons waiting for you in my book.