Leaders who reward great teams, or individual performance with recognition, attention, and appreciation help to cultivate even higher levels of engagement and loyalty to the organization. This is a good thing — up to a point. It is when leaders start to derail and that reward for loyalty becomes a tradeoff, or they start to buy that loyalty with promises of future rewards that the problems start to surface. Promoting, compensating, and protecting colleagues on the basis of loyalty undermines the team and creates a highly dysfunctional climate. This is also how silos can begin in organizations. When leaders place a higher regard on loyalty than they do on team performance, they make long-term decisions that destroy the team’s ability to be successful. In turn, employees who start to believe it is only through loyalty to their leaders, and not their own experience, skills, and contributions that matter most, start to play the game and spend more time trying to prove loyalty than on achieving actual results that truly benefit the organization as a whole. 

Join Rich and Maikel on this episode of Mainline Executive Coaching ACT as we talk about the dangers of buying loyalty.

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