For Subscribers

Out With the "In" If you want happy, harmonious employees, it's time to kick those workplace cliques to the curb.

By Chris Penttila

Opinions expressed by Entrepreneur contributors are their own.

Without a doubt, you value your longtime employees. You knowthem, and they know you. When it comes down to it, your longtimeemployees are like family.

But families can be dysfunctional. New employees coming in canfind there's an impenetrable "in" crowd: a close-knitgroup of longtime employees who have a clique, as well as the earof management. "You can see which team members are together,who turns to whom, and who is left out," says Arlene Vernon,owner of HR and management consulting firm HRx Inc. in EdenPrairie, Minnesota.

The office "in" crowd is a subtle but deadly threat tomorale, productivity and retention. The exact cost of this problemis hard to quantify because employees don't raise the issueduring exit interviews. After all, who wants to say they'releaving because they don't think they fit in?

Don't think the "in" crowd will be a problem foryour teamwork-driven company? Think again. "It happensfrequently and for a variety of reasons," says ArLyne Diamond,founder of management consulting firm DiamondAssociates in Santa Clara, California. "We create[relationships] and then close in around them. We've done itsince we were kids."

In the Clique of Things

A strong relationship between longtime employees is good forteamwork and productivity, but it goes too far when recent hiresfeel excluded, both socially and professionally. Eventually, theywill find the nearest exit.

Tom Womack knows the feeling. When he took a job with a15-employee ad agency in Texas a few years ago, he discovered therewas a group of longtime employees who ate lunch together and bandedtogether on the job. The "in" crowd brushed offWomack's ideas and kept him at arm's length. "[Theattitude] was 'We've been here longer than you, andwe're in charge,'" he says. The company owner-a"really nice guy"-turned his head the other way. "Hedidn't want to deal with the conflict," says Womack, whobelieves the "in" crowd can have a harsher impact insmall companies. "If there's a clique of six employees inan office of 12 people, there's nowhere else to go forrelationships," he says. He left the company within one yearand joined another company where he feels "a lot moreharmony" with his co-workers.

A powerful "in" crowd is the result of companiesfailing to integrate new employees into the mix, Diamond says, andsolving it requires a strategic approach. Think about creating a"work buddies" training system that pairs longtimers withnew hires so they get to know each other. Give longtimersincentives-small gifts, recognition and so on-for making theeffort. Also make integration an element of your performance reviewprocess. This way, raises, bonuses and promotions are linked to howwell all employees have welcomed, trained and worked with newhires. "You have to model it, mandate it and reinforceit," Diamond says. "It's got to be top down."You'll be less likely to lose good ideas and good people thisway.

Sepideh Asefnia is founder and president of Sepi EngineeringGroup Inc., a Raleigh, North Carolina, engineering firm thatspecializes in transportation design. The company has grown fromtwo to 32 employees in three years. Like most entrepreneurs,Asefnia's early hires were former co-workers. "Everyone Istarted out with is still here," she says.

Asefnia, 41, has experienced "in" crowds at otherplaces she's worked, and she's taking steps to prevent onefrom developing in her workplace. She follows her own golden rule:Never vent about personnel issues to longtime employees, because itwould send the wrong message to them and the company's recenthires. She makes a point of asking new employees for input andstops by their desks regularly to chat. As an entrepreneur,whatever you do sets a cultural norm, and your actions can fuel the"in" crowd. "You have to make an effort to createthat cohesive team you're going to grow with," saysAsefnia, whose company generated sales of $2 million in 2003.

Are You In or Out?

Be aware that department managers can be members of the"in" crowd, befriending other longtime employees on (andoff) the clock. It doesn't take a rocket scientist to see whythis is bad for morale. Let the manager know just how damaging itis, and that you expect better interaction with employees. Tiemanagerial performance to the ability to create inclusivenessacross the employee base. Ask employees to rate their managers onthese abilities once a year, too.

Outing the "in" crowd is one of the most importantthings you'll ever do as a leader, because it sets the tone foryour company's culture and future growth. And it all startswith you. Says Asefnia: "It boils down toleadership."

Chris Penttila is a Washington, DC-based freelance journalist who covers workplace issues on her blog, Workplacediva.blogspot.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

101 Small Business Ideas to Match Your Personality, Investment, Skills & Goals

Still stuck on what biz to start? Use AI to uncover 101 custom ideas aligned with your skills, values & lifestyle—plus a 90-day roadmap to launch with clarity.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Side Hustle

She and Her Sister Started a Side Hustle to Help People Elevate Their Homes — Now Their Brand Pulls In Hundreds of Millions: 'Get to Work'

When Lee Mayer moved from New York City to Denver, Colorado, she wanted to find an affordable, fun way to decorate her home.

Growing a Business

Why Storytelling (Not Selling) Is Your Most Powerful Branding Tool

A thought leader is a sum of their stories. Learn why sharing your unique thoughts, feelings and perspectives can help you stand apart from other experts in your field.

Business Solutions

Access 25 Hours of AI Training for Less Than $20

This e-degree gives you hands-on AI training that's perfect for entrepreneurs wearing many hats.

Starting a Business

How to Build a Side Hustle That Stands on Its Own — Without Burning Out

Ready to take your side hustle to the next level? This article shows you how to turn it into its own unique brand that gets noticed and grows on its own.