Nepotism - It's All Relative

"Nepotism is favoritism granted to relatives regardless of merit."   

 

You have to wonder in what world a business owner / executive would think that an organization is best-served in hiring relatives "regardless of merit."   

 

For an employer, there may be a perceived benefit to hiring family members.   You're helping the family member out, becoming a bit of a hero in the process, while potentially saving the costs of recruiting, training, background investigations, etc.  for a new employee.    However, there may be disasters looming right around the next corner.

 

While family members may create a readily available workforce oftentimes they are under qualified for the positions they fill.   And those employees who are bypassed in favor of family members may develop hostile feelings, feelings of resentment.  Nepotism in a business environment may create a perceived lack of fairness in the organization, a disastrous negative impact in which employees may see no career growth. 

 

What about employees who are responsible for supervising family members?  Disciplining or firing employees is difficult enough but will they be restricted in what corrective actions they may take?  Will there be repercussions in taking corrective actions?  Will it cost the employee their career?  How does an employee handle the situation when it's the bosses relative?  Whether or not the owner wishes to admit it, nepotism can be a disruption to the work environment. 

 

Can engaging in nepotism be illegal?  Ordinarily, no.  However,  if the employer hires family (or friends) to the point where there is no consideration for other sexes, age groups, etc, the employer may be unknowingly violating Title VII of the Civil Rights Act of 1964. 

Business owners - here are a couple of questions for you to ponder:

1. Is nepotism unethical?
2. Should nepotism be in the Code of Conduct?