Your Most Loyal Employee Might Be Your Biggest Problem

Every CEO has that one employee the "trusted insider" who’s been there forever.

They know the company inside out. They always have your ear. You rely on them for the "real story" behind every dispute.

But what if I told you they might be the reason your workplace is toxic?

The Hidden Danger of Over-Reliance on a Single Employee

Early in my career, I worked for a leader who leaned heavily on one long-serving employee before making any major decision. On the surface, this made sense experience should count, right?

But here’s the problem…

?? This employee was not always right but they were always favored.

?? New employees took the fall for mistakes they never made.

?? The culture became silent, fearful, and toxic because people realized: truth didn’t matter loyalty did.

When one voice dominates decision-making, the organization suffers. Fresh perspectives get ignored. Employees stop speaking up. And ultimately, the CEO makes decisions based on one person’s biases, not the full reality of the workplace.

The Cost of Favoritism in Leadership

Favoritism doesn’t just create resentment it damages performance, innovation, and retention. Here’s why:

?? You Lose Great Talent – Smart, capable employees don’t stick around when they see bias. They leave for workplaces where their ideas and efforts are recognized fairly.

?? Your Decision-Making Becomes Flawed – If you only hear one version of events, your perspective is skewed. Bad decisions follow.

?? A Culture of Fear Replaces a Culture of Innovation – Employees who fear being overruled by a “favorite” will stop taking risks, sharing ideas, or speaking up. That’s how stagnation begins.

If You’re a CEO, Here’s What You Need to Do Instead:

1. Never Let One Employee Control the Narrative

Loyalty is great, but bias is real. If you only listen to the same person, you’re not leading you’re being manipulated. Instead, create structures where all employees have a voice in decision-making. Regularly rotate advisors, seek out multiple opinions, and encourage diverse perspectives.

2. Make Decisions Based on Facts, Not Familiarity

The hardest workers might not be the loudest ones. Don’t rely solely on verbal feedback from one person use objective performance data, anonymous feedback channels, and open-door policies to get the full picture.

3. Reward Transparency, Not Office Politics

If employees are afraid to speak up because they know you have a "favorite," you’ve already lost. Create a culture where truth wins not tenure. Recognize and reward those who provide honest, constructive feedback, even when it challenges existing norms.

4. Set Clear Boundaries Between Longevity and Influence

Just because someone has been with the company for years doesn’t mean they should have unchecked influence. Long tenure should not mean automatic decision-making power instead, evaluate all employees based on performance, ethics, and contribution.

5. Conduct Anonymous Culture Audits

Want to know if favoritism is hurting your workplace? Ask your employees anonymously. Regular pulse surveys and confidential 360-degree feedback mechanisms can help uncover hidden workplace biases before they become a crisis.

Favoritism Is a Silent Business Killer

If you’re a CEO and you allow one employee to shape your view of the company, you’re not leading you’re being led.

This mistake is costing you talent. It’s pushing away smart, capable employees who could take your company to the next level because they see the favoritism and check out.

Fix this, and you’ll transform your workplace culture, attract top talent, and make better business decisions.

If you’re a CEO struggling with hidden workplace conflicts, let’s talk. DM me or reply to this email, and let’s discuss how to create a company culture where fairness not favoritism drives success.