The Halo Effect: A Leadership Trap

The Halo Effect: A Leadership Trap

By Mark Wager

Let’s be honest—leadership isn’t always as rational as we’d like it to be. Leadership is about people, and every person, including the leader, brings internal biases to the table. No matter how much we try to focus on facts, our emotions and instincts often influence our decisions. One of the most fascinating ways this happens is through something called the halo effect—a psychological bias that can distort how we perceive others and ourselves, sometimes for the better, but often to our detriment.

If you’ve ever thought, “She’s so confident, she must be a great leader,” or, “He missed a deadline; he must be unreliable,” you’ve experienced the halo effect in action. As a leader, understanding how this bias works is crucial—it can shape your decisions, relationships, and even your reputation. Let’s explore this phenomenon and its impact on leadership.

So, What Exactly Is the Halo Effect?

The halo effect is a shortcut your brain takes when forming opinions about people. If someone has one standout quality—like being friendly, articulate, or punctual—you tend to assume they excel in other areas too. Their glowing trait casts a metaphorical halo over everything else.

For example:

• A team member who speaks confidently in meetings might be seen as more competent overall.

• Conversely, if someone is late once or twice, you might unfairly write them off as unreliable, even if they excel in other areas.

Sound familiar? It’s a natural human tendency. The halo effect doesn’t make you a “bad” leader or a biased person—it’s simply how our brains are wired. But left unchecked, it can lead to unfair decisions, missed opportunities, and strained team dynamics.

How the Halo Effect Impacts Leadership

The halo effect can influence your leadership in surprising ways. Sometimes it works in your favour, sometimes it doesn’t, but it’s always there, quietly shaping perceptions.

1. The Weight of First Impressions

First impressions matter more than we often realise. Have you ever decided what you think about someone within seconds of meeting them? Perhaps they walked into the room with confidence, and you thought, “This person has their act together.” Or maybe they stumbled over their words, and you assumed they weren’t capable.

Now think about how this works in reverse. When you step into a leadership role, your team forms snap judgments about you. A confident and approachable start can create a positive impression that lasts, even if you make mistakes later. On the other hand, a rocky start can be difficult to overcome.

2. It Shapes How You See Your Team

Here’s where the halo effect becomes tricky. Let’s say you have a team member who always meets deadlines. It’s easy to assume they’re a high performer across the board—but are they really? Or perhaps someone made a poor first impression, and you’ve been overlooking their contributions ever since.

This bias doesn’t just affect individuals. It can skew how you view entire teams or departments. A single standout success—or failure—can colour your perception of their overall performance.

3. It Reinforces the Wrong Behaviours

I once worked with a CEO who noticed certain employees working late every night. He assumed this meant they were more dedicated than others, so he favoured them when promotion opportunities arose. However, he later discovered that these employees stayed late to be seen by him, while the bulk of the work was done by those who came in early and left on time.

The lesson? Be mindful of what behaviours you reward. What you reward, you reinforce—and not always for the better.

4. Your Reputation Is Part of the Game

As a leader, your team is constantly observing you and forming judgments. If you’ve handled crises well or consistently made fair decisions, you might enjoy a “halo” of trust and competence. But this halo is fragile—one major misstep, and it can vanish.

The good news? The halo effect works both ways. If you’ve struggled with your reputation, even small wins can begin to rebuild trust and respect.

What Can You Do About It?

The goal isn’t to eliminate the halo effect—that’s impossible. Instead, you can learn to manage it and even use it to your advantage. Here’s how:

1. Slow Down and Question Your Assumptions

When you catch yourself making a snap judgment, pause and ask: Am I basing this on evidence or emotion?

For example:

• If you think someone is a top performer, what concrete evidence supports that belief?

• If you’ve written someone off, are you focusing too much on a single flaw?

By slowing down and questioning your assumptions, you’ll make fairer, more balanced decisions.

2. Involve Others in Decision-Making

Leadership can feel isolating, but you don’t have to rely solely on your own perceptions. When evaluating team members or making important decisions, seek input from others. Colleagues, peers, or even external mentors might notice strengths or weaknesses you’ve missed.

This isn’t about doubting yourself—it’s about broadening your perspective. A well-rounded view leads to better decisions.

3. Be Intentional About Feedback

The halo effect can make it hard for leaders to receive honest feedback. If your team views you as confident and capable, they might hesitate to point out areas where you could improve. On the flip side, if they see you as struggling, they might withhold praise.

Create a culture where feedback flows both ways. Ask your team for their insights—for example, “What’s one thing I could do better?”—to encourage open, constructive conversations.

4. Focus on Behaviours, Not Personality

When giving feedback or evaluating performance, separate actions from traits. Instead of thinking, “They’re a natural leader,” focus on specifics: “They’ve handled client relationships well this quarter.”

This approach ensures fairness and helps identify areas for improvement without letting biases creep in.

Final Thoughts

The halo effect is a double-edged sword. It can cloud your judgment and lead to unfair decisions, but it’s also a powerful reminder of the role perception plays in leadership

By staying aware of this bias, questioning your assumptions, and focusing on evidence-based decisions, you can minimise its downsides. At the same time, you can use it to highlight strengths, build trust, and inspire confidence in yourself and your team.

Leadership isn’t about being perfect. It’s about learning, growing, and helping others do the same. The next time you catch yourself making a snap judgment, pause, reflect, and remember: leadership is about seeing clearly—and helping others shine in their own light.