When companies ignore favouritism, culture sours and workers leave

Radhika Panjwani is a freelance writer from Toronto.

One other major downside of favouritism is that organizations don’t get the best value for the salary they’re paying the worker. Because merit is not at play, chances are it’s one of the underperformers getting the higher pay, said Helen Ofosu, an Ottawa-based organizational psychologist, career coach and author of How to be resilient in your career: Facing up to barriers at work.

Royal Bank of Canada recently fired two of its senior executives after investigations revealed the chief financial officer had violated the bank’s code of conduct by pursuing a relationship with a vice president in the treasury department and had arranged his promotions and pay raises.

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