Unconscious Bias Is Hurting Your Team Relationships
You meet someone new on a client call, and before they've said ten words, your brain has already filed them: "finance guy," "younger hire," "not a details person." Last month I wrote about listening as the way into real Relationships. This month is about the thing that gets in the way of listening before it even starts.
That filing system is unconscious bias, and it's quieter and more automatic than most leaders realize.
Name the Bias: Illicit Transference
Here's the specific version that trips up Relationships most often: illicit transference. It's the assumption that a trait true of a group must be true of each person in it, or that a trait true of one person must be true of the whole group.
It shows up as two related errors. The first is the fallacy of composition: one good experience with a person becomes a belief about their entire company or category. One responsive vendor rep, and suddenly "that whole company is easy to work with." The second is the fallacy of division: one bad headline about a company becomes a belief about every person in it. One bad review, and suddenly "nobody there knows what they're doing."
Neither holds up. But both feel true in the moment, which is exactly what makes them dangerous.
When a leader stereotypes, positively or negatively, they seek out or avoid relationships for reasons that have nothing to do with the actual person.
Alex's Story: Jim Goes Remote
A few years back, a team member — I'll call him Jim — relocated and became fully remote. It didn't go well. Tasks slipped, he was hard to reach, and I started to doubt he was really putting in the hours. Fair concerns about Jim.
Except I didn't stop at Jim. The next person who asked to work from home got the same skepticism, even though she'd never given me a reason for it. I'd taken one remote employee's shortcomings and quietly applied them to an entire category of people. It cost me trust with someone who'd done nothing to earn my doubt, and it took a forced shift to remote work industry-wide for me to catch myself doing it.
Why It Matters For Leaders
This is where illicit transference stops being an abstract bias and starts costing you Relationships. When you stereotype someone, positive or negative, you're deciding who to invest in or hold at arm's length for reasons that have nothing to do with them. Do that enough, and people notice they're being related to as a category, not as themselves — and psychological safety erodes from there.
Part of why this bias is so sticky is mechanical: your brain builds shortcuts for people the same way it builds shortcuts for everything else, a process researchers call schema theory. It's efficient for sorting objects and ideas. It's a problem for sorting people. (I've written more on that mechanism here, if you want the deeper dive: The Schema Theory & Overcoming Our Biases.)
Audit beliefs you've inherited rather than tested. Ask people directly instead of assuming you already know their answer. And listen more than you talk in one-on-ones. Most bias survives because it's never actually checked against the real person in front of you.
The Fix: Meet People Where They Are
You won't out-think an unconscious process by trying harder in the moment. You catch it with a few deliberate habits:
Audit the beliefs you inherited. Most of what you assume about a group, you never actually tested — you picked it up somewhere and never checked it.
Ask instead of assuming. If you're not sure how someone feels about something, ask them directly instead of filling in the blank yourself.
Listen more than you talk. This is where the practices from last month's piece on listening pay off again — the more you actually hear from someone, the less room there is for your assumptions to fill in the gaps.
Do this consistently, and you start building team relationships on evidence instead of category, which is the only kind that holds up when it's tested. It's also the fastest way to catch bias in the workplace before it quietly shapes who gets your time and trust.
FAQ
What is unconscious bias?
Unconscious bias is a snap judgment your brain makes automatically, often about a person's group rather than the individual. It's not a character flaw — it's a mental shortcut everyone has. The problem isn't having it; it's letting it drive decisions about who you trust or invest time in without checking it first.
What is illicit transference?
Illicit transference is assuming a trait true of a group applies to every individual in it, or that a trait true of one person applies to their whole group. Both are logical errors — the fallacies of composition and division — and both quietly shape who leaders approach or avoid.
How does unconscious bias affect team relationships?
When a leader stereotypes, positively or negatively, they seek out or avoid relationships for reasons that have nothing to do with the actual person. That erodes psychological safety over time, since team members sense they're being related to as a category, not as themselves. And it significantly distorts executive judgement.
How can leaders reduce bias in the workplace?
Start by auditing beliefs you've inherited rather than tested. Ask people directly instead of assuming you already know their answer. And listen more than you talk in one-on-ones — most bias survives because it's never actually checked against the real person in front of you.
Illicit transference is the first of two biases that quietly undercut Relationships — and it's the easier one to catch once you know to look for it. The second one is harder to spot, because instead of pushing people away, it pulls you toward people who are basically just... you. More on that next month when we explore Relationship bias #2- “Similar to Me”.
Want to explore these ideas further?
The concepts of leadership bias and illicit transference are explored further in chapter 10 of CARE to Win: The 4 Leadership Habits to Build High-Performing Teams. You can learn more about the book and download a free preview here.
Read more about the CARE framework in full.

