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Managing Favouritism in the Workplace

Culture

5 June 2025 (Last updated 3 Sept 2025)

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Favouritism in the workplace is the fear of many employees. And there is no doubt that bad management allows favouritism to flourish.

All employees are entitled to, and expect to be, treated equally. Favouritism can cause employees to feel treated unfairly, and the subject of discrimination.

While it is not best practice, favouritism is not necessarily illegal. There is nothing unlawful about a manager favouring an employee or a group of employees.

Unless, of course, that favouritism is rooted in discrimination or goes against specific laws.

What is favouritism in the workplace?

Favouritism is what it says on the tin – favouring someone or some group in the workplace for reasons outside of their job performance.

A well-known type of favouritism is nepotism. Nepotism means to show favour to family members or friends, and for obvious reasons is commonly found in family-run businesses.

Many successful businessmen’s children take up their parent’s roles in the family business. Sir James Fletcher, Harry Hart and the Whittaker family are examples of this.

Another example of favouritism is when an employee or group of employees is treated differently due to personal characteristics. Treating employees based on personal characteristics can be seen as discrimination.

Favouritism as a form of discrimination

The Employment Relations Act and the Human Rights Act provide all employees in New Zealand protection from discrimination. Personal characteristics protected from discrimination are:

  • age
  • race, colour, national or ethnic origin and beliefs or immigrant status
  • religion or political opinion
  • sex, sexual orientation, or gender identity
  • marital status
  • pregnancy or breastfeeding
  • family or carer responsibilities or status
  • physical or mental disability
  • employment status
  • membership or involvement in a union
  • or if they’re being affected by domestic violence.

Is Favouritism in the workplace illegal?

Favouritism in the workplace isn’t outrightly illegal. However, if there is discriminatory favouritism then it can be unlawful.

Under the Employment Relations Act and the Human Rights Act, all employees in New Zealand are protected from being discriminated against due to personal characteristics. Some of these characteristics include race, religion, and sex, among others.

Managing Favouritism In the Workplace

Here are a few ways to manage favouritism, including how to prevent it. A workplace rife with favouritism fosters low morale, a bad culture and overlooking potential and good performers.

1 - Nurture a Professional Environment

Protect your workplace from potential favouritism by nurturing a professional environment. Favouritism is a fundamentally unprofessional phenomenon. Foster a serious work focus is the first step in warding off favouritism.

2 - Provide a Policy

Communicating to your employees and managers (if applicable) your expectations is another great way to minimise favouritism. A policy is the best way to provide this information. Providing a copy to all employees is the clearest and firmest way of communicating your expectations. It also signals how seriously you take the issue.

3 - Offer Training

What is and isn’t discrimination is not always intuitive. To prevent favouritism due to discrimination, consider offering training for your staff. During this training session, you can also educate employees of the drawbacks of favouritism.

4 - Nip it in the Bud

If you see any signs of favouritism sprouting, nip them in the bud. Addressing the problem directly can be difficult, but it can stop any further damage caused by favouritism. It is strongly suggested that you investigate and address favouritism if you believe it may be discriminatory.

Is preferential treatment in the workplace illegal?

Preferential treatment overall is not illegal. However, it is illegal if the preferential treatment is discriminatory. That is, a worker is treated differently due to a personal characteristic, such as their race, sexual orientation or religion. Preferential treatment such as nepotism or favouritism is also not illegal.

How do you address unfair treatment at work?

Investigate the matter and interview staff about it. Decide and note what, if any, behaviour or actions were unfair. Discuss the issue with the unfairly treated employee(s) and perpetrator(s). Attempt a mediation between the two parties, if appropriate (e.g. mediation wouldn’t be appropriate for a sexual harassment claim). Decide on disciplinary measures, if necessary, against the perpetrator. Discuss the general issue with the rest of the staff, without breaching confidentiality. Re-distribute policy & procedures to remind staff of what is expected of them.

Is favouritism a form of harassment?

Whether or not favouritism is a form of harassment will be assessed on a case-by-case basis. In some cases, while it is unwelcome, favouritism is not harassment. In other cases, favouritism can be considered harassment if its discriminatory or vindictive in nature. For example, putting the spotlight on an employee for the wrong reasons can be considered harassing or bullying the employee.

Create strong policies with Peninsula

Our team of specialists at Peninsula can help you limit favouritism or discrimination in the workplace by providing appropriate workplace policy and procedure, advice and documents. Call us today on 0800 675 700.

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