What is Halo Effect?
‘Halo Effect’ refers to the fact that human beings are influenced by an individual’s overall positive vibe when judging them and hence, will be biased towards them. American psychologist Edward Thorndike was the first to develop the theory of halo effect and its outcomes.
Concerning HR, the halo effect is significant as it is directly related to multiple factors like securing a position, appraisal, getting leaves, performance reviews and other additional benefits.
The halo effect and its influence negatively impacts the company and the HR department as the employees getting a positive treatment due to their positive traits would carefree. On the other hand, other employees might get demotivated due to the biased treatment and would therefore either feel disengaged from the company or even change jobs.