At Growth By Design, we believe intentional choices lead to impactful growth, whether you’re shaping a thriving organization or a meaningful life. Here, we provide the practical information, tools, and frameworks to get you there. Today we’re continuing our examination of in-groups and out-groups, exploring how these natural patterns show up on the job, how they affect everything from innovation to morale, and the practical steps leaders can take to transform exclusion into inclusion.

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In-Groups and Out-Groups at Work: Why “Us” vs. “Them” Happens on Your Team

Intentional relationships aren’t just soft skills – they’re the secret sauce behind resilient, high-performing teams. Our lives are shaped by in-group/out-group dynamics, but nowhere do they play out with sharper impact than in the workplace – often for the worse.

We spoke about this in last week’s blog generally, but as a recap social psychology teaches us that our brains are always sorting people – into “us” (those like me) and “them” (those who aren’t). In a company setting, the in-group might be your division or team, the “cool kids” in a project, or the group that always gets invited to lunch. Out-groups? Maybe the remote team, the newest hire, the other department you always seem to bump up against, the seemingly squeaky wheel, or anyone perceived as outside the norm.

This isn’t just human nature, it’s organizational reality. Studies consistently show that these dynamics can form in organizations within days, regardless of formal structure. The effects are powerful and persistent, and if you want your team (and company) to perform at its best, this must be addressed swiftly and actively worked to be prevented.

How In-Group/Out-Group Dynamics Affect Performance and Culture

Here’s the hard truth: unchecked cliques and exclusivity do real damage. Organizational psychology research and business studies are clear:

• Performance suffers: Groupthink suppresses dissent, which stifles new ideas and better decisions. Out-group members may avoid sharing their perspective, robbing teams of creativity and deeper insight.
• Turnover climbs: Exclusion leads to lower job satisfaction and higher anxiety. Marginalized teammates are much more likely to leave – driving up costs and eroding group stability.
• Bias and micro-aggressions linger: Everything from subtle signals (“We always do it this way…”) to overt slights create barriers for people outside the group. Even those with the best intentions can unconsciously reinforce who “belongs” and who doesn’t.
• Reduced innovation: Diverse teams outperform homogeneous ones, but only when everyone feels safe to contribute. Without intentional inclusion, you lose the power of those differences.
• Split culture: Petty silos, gossip, and “us vs. them” mentalities eat away at the foundation of trust and shared purpose.

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“Workplaces that address in-group/out-group dynamics see measurable improvements in employee engagement, creativity, and overall satisfaction.”

– Harvard Business Review

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What Leaders Can Do (And Why It Starts With You)

As a leader, you set the tone for yourself and for your teams. But intentional inclusivity doesn’t just happen; it’s built, brick by brick, through daily actions and open reflection. Here are some tips from leading organizational psychologists on how to address and prevent in-group/out-group dynamics at work:

For yourself:

• Notice your knee-jerk reactions. Who do you naturally gravitate toward or away from?
• Ask who isn’t in the room, or whose voice is missing. Invite them in, genuinely.
• Challenge your own perceptions of “fit.” Ask: What am I really valuing in this group, and who is being left out?
• Reflect on your influence: Do your words, actions, and attention reinforce certain cliques?

For your team:

• Make inclusion a core value, not just a platitude, through visible in rituals, recognition, and leadership decisions.
• Rotate group assignments, decision-makers, and visible roles to prevent stagnant cliques.
• Encourage honest dialogue about how in-group/out-group dynamics show up (and listen, don’t judge).
• Offer diverse mentorship and networking opportunities.
• Champion belonging: Celebrate contributions from every corner, not just the usual suspects.

Practices and Prompts to Build More “Us” at Work

I noodle on this daily – I know in-group/out-group behavior is our natural default setting, which requires an intentional practice to prevent. Here are some of the reflective prompts I’ve come across and used in my work that have helped me address and prevent “them” and instead nurture more “us”:

• Who’s the “other” on our team – and how can we bring them in? (Think other departments or hierarchies)
• Where are the blind spots in our meetings, projects, or social rhythms? How have we unconsciously excluded someone?
• Is everyone who is affected by the work we are doing brought into the work to some degree? Their perspective will likely help us round out the rougher edges we don’t bump up against in our small part of the company.
• When did someone surprise us with an insight because we gave them real space to speak? What can we learn from that? (If you can’t come up with an answer here, reflect on if you’re actually inviting people to speak).
• As a leader, how do I help others see themselves as “belonging” here – beyond the job description?

Create Belonging, Reap Results

In-groups and out-groups show up everywhere – including the office. But as we’ve explored today, organizations built for true belonging intentionally disrupt these patterns, leading to higher performance, greater trust, and more joy at work. The most effective leaders aren’t just building teams – they’re building bridges that take everyone further than we could go separately.

So friends, here’s my invitation: show up with curiosity, break the barriers, and choose every day to expand your circle. Take “cross-functional coordination” to a new level, and intentionally include those who you don’t engage with daily. When you do, your team – and your impact – will thrive.

Onward and upward!
Katie