The experience of working in an organization where standards were clear, is something a lot of people never got the opportunity to experience. This can be frustrating and discouraging. Some companies maintain inner corruption that makes the playing field rough and the promotion process unfair. It’s called nepotism, and if your company suffers from it, your business will end up losing highly inspired employees and having lower workplace morale and productivity. Stay tuned to learn what nepotism in the workplace is, its policy, and the difference between nepotism Vs cronyism.
Nepotism: Overview
Nepotism is the act of granting benefits, privileges, or positions to relatives or close friends in an occupation or field. These fields may include but are not limited to business, politics, academia, entertainment, sports, religion, and other activities. Nepotism is the preferential treatment of relatives and friends during the hiring process, regardless of others who might be more qualified for those positions.
Thus, nepotism occurs when those with the power to hire or promote within a company ignore more qualified candidates to hire or advance a family member instead. In other words, nepotism at the workplace happens when employers treat the related employee better than other employees. Some examples of this are:
- Ignoring the family member’s habitual lateness
- Assigning less work to the related employee than other employees
- Promoting a family member over other more deserving employees
- Not addressing the relative’s poor work performance
Is Nepotism Illegal?
Nepotism is not technically illegal in the United States as it does not directly violate any labor law. However, if an employee benefits from knowing a family or friend who is already employed by an organization, the title v11 of the Civil Rights Act of 1964 may come into play. Oftentimes, families share race and national origin, which can be classified as discrimination. But, any form of favoritism may result in unlawful discrimination in the workplace.
What is Nepotism In the Workplace
Nepotism in the workplace means favoring family and friends over others for opportunities, including hiring, promotions, desirable project assignments, preferred shifts, etc. While not illegal, nepotism is one of the more destructive practices managers can introduce in a workplace. Also, in some cases, nepotism can be beneficial, especially if the person being hired has the necessary skills and qualifications. However, in many cases, nepotism creates an unfair workplace where qualified individuals are ignored for promotions or jobs simply because they don’t have the right connections.
Examples Of Nepotism In The Workplace
These examples show how nepotism creates problems in the workplace and leads to the feeling of unfairness, favoritism, and conflict of interest.
- Hiring family members: This happens when an employer hires a family member for a position in the company, even if the family member is not the best qualified for the job. For instance, an employer may hire their child as a receptionist or their spouse as a manager, despite there being more qualified candidates.
- Promoting family members: This takes place when an employer promotes a family member to a position of greater responsibility or authority, even if there are more qualified candidates for the job. For example, an employer may promote their sister to a senior executive position, despite there being more qualified employees within the organization.
- Providing preferential treatment: This occurs when an employer provides preferential treatment to a family member, such as giving them the best office space or work schedule, despite there being no legitimate reason for doing so.
- Conflict of interest: This occurs when an employer makes business decisions that favor a family member over the best interests of the company, or when a family member is involved in decisions that affect another family member’s job. For example, an employer may give a contract to a family member’s company, even if that company is not the best qualified for the job.
- Perceived favoritism: This occurs when other employees perceive that a family member is receiving preferential treatment, even if there is no actual bias. This can negatively affect employee morale and create a harmful work environment.
Types of Nepotism
Generally speaking, there are two types of nepotism: reciprocal nepotism and entitlement nepotism. Although they are both unjust, they serve different purposes, and the motives behind them are slightly different.
- Reciprocal nepotism. Reciprocal nepotism is when a family member accepts a position because of financial considerations, loyalty issues, a desire for a better family relationship, or cultural norms (i.e., nepotism has been allowed previously).
- Entitlement nepotism. Entitlement nepotism is when someone feels a sense of entitlement for a certain job or promotion because their family member works at a company. This occurs most often within family-owned businesses.
Negative Effects of Nepotism in the Workplace
Nepotism doesn’t occur in a void. It can hurt employers, employees, and the entire company. A few of the negative effects of hiring unqualified family members are:
#1. Creates an Unhealthy Work Environment
Employees tend to feel less valued if they notice family favoritism at work. For instance, imagine a loyal employee who constantly comes to work early, and performs the job well. Now imagine that employee’s reaction when an expected promotion goes to the manager’s average niece instead. Such behavior brings bitterness and anger. The crest effect of nepotism can turn a once-healthy workplace toxic.
#2. Reduces Employee Self-Esteem
Nepotism reduces employee esteem by making employees feel the deck is stacked against them. This, in turn, makes employees wonder why they should try to do their best if being the boss’ relative is the main benchmark for promotion. In addition to that, Their confidence in the company’s mission disappear. This leads to employees giving their minimum instead of their best effort.
#3. Increase in Employee Turnover Rates
Poor morale caused by nepotism has side effects. You will lose valuable members of your workforce. Talented employees who notice nepotism may leave the company to go somewhere they feel will treat them more fairly. Also, bear in mind that replacing good employees isn’t cheap: Hiring expenses e.g., recruitment, job board fees, background checks, etc., and training new employees can be costly.
#4. Adds to Decreased Productivity
Qualifications are critical. This is why unqualified employees cause productivity to suffer. When managers hire or promote less equipped relatives, they are bound to make more mistakes than other employees that someone else has to correct. Additionally, adding a number to the cost of lost productivity is difficult, but common sense indicates that an unqualified employee’s salary is just one session of wasted money due to nepotism.
#5. Reduces Employee Respect for Leadership
Respect for managers is essential for employee engagement. But when those with hiring and promotion power make poor decisions, such as hiring unqualified relatives, they risk losing employees’ respect. Recent data shows that nepotism causes employees to view leaders negatively. Bitterness, insubordination, and less dedication to the job are just a few effects of lowered respect for company leaders.
What is Nepotism Policy
A nepotism policy is a set of rules and guidelines set in place by an organization to prevent the hiring or promotion of family members or close relatives of current employees or management. Hence, the policy is created to avoid conflicts of interest, favoritism, and other forms of unfair treatment that may arise when family members work together in the same organization.
Additionally, the nepotism policy typically specifies the types of relationships that are covered, such as spouses, children, parents, siblings, and in-laws, and sets forth the punishment for violating the policy. The policy may also include exceptions in certain instances, such as when there are no other qualified candidates for a position. An effective nepotism policy is an important tool in promoting a fair and equitable workplace and can help maintain the integrity of the organization.
How To Craft Nepotism Policy?
Are you going to add a nepotism policy to your procedures? Here are some key things to consider when drafting a nepotism policy:
#1. Define what It Means
The policy should clearly define what nepotism is and what relationships are covered by the policy. For example, the policy might state that no employee may directly or indirectly supervise, hire, or make decisions involving a family member, spouse, or domestic partner.
#2. Identify the Roles Covered
The policy should identify the job positions that are protected by the policy, such as all employees, supervisors, or executives. The policy should also clarify whether the policy applies to both full-time and part-time employees.
#3.Include Purnishments
The policy should clearly state the consequences for going against the policy, such as disciplinary action up to and including termination.
#4. Consider Exceptions
In some cases, it may be necessary to make an exception to the policy, such as when no other qualified candidates are available for a particular position. The policy should outline the process for requesting an exception and the criteria for figuring out whether an exception is warranted.
#5. Talk About the Policy
Once the policy is drafted, it is necessary to communicate it to all employees and make it part of the onboarding process for new hires. It should also be reviewed and updated regularly to ensure it remains relevant and effective.
#6. Address Conflicts of Interest
The policy should make provision for guidance on how to identify and address conflicts of interest that may arise when employees have personal relationships with coworkers or supervisors. This may involve recusing oneself from certain decisions or projects.
#7. Consider Legal Implications
Depending on the jurisdiction, nepotism policies may be subjected to certain legal requirements or restrictions. Therefore, it is advisable to consult with legal counsel to ensure the policy is compliant with relevant laws and regulations.
Nepotism Vs Cronyism
Nepotism and Cronyism are two forms of favoritism between which a key difference can be identified. First, let us define the two words. nepotism is favoritism shown to relatives or family members, especially by giving them jobs. On the other hand, cronyism is the favoritism shown to friends when appointing for new positions. As you can see, while nepotism focuses on relatives; mainly family members, cronyism focuses on friends,
Nepotism Vs Cronyism: Differences
Below are the differences between nepotism vs cronyism in different approaches,
#1. Definitions of Nepotism VS Cronyism
Nepotism and cronyism are about unfairly favoring someone in the workplace. Hence, nepotism refers to favoring a family member, whereas cronyism is favoring a friend or acquaintance.
#2. Characteristics of Nepotism and Cronyism
In nepotism, favoritism is shown to relatives whereas in cronyism, favoritism is shown to friends.
#3 Context
Nepotism often happens in religious, career-based, entertainment, and religious sectors whereas cronyism usually happens in politics, career-based, and entertainment sectors. This is another difference between nepotism Vs cronyism.
#4. Examples
In nepotism when a director promotes his son to a higher position although there are better-qualified candidates than him. But When a procurement officer awards the contract for the procurement of computers to his friend
What are the Factors of Nepotism?
While there is no single cause of nepotism in the workplace, it often arises from a combination of factors, such as tribalism, poor management, cost-cutting, and risk aversion.
What is a Person Who Does Nepotism Called?
nep·o·tist. -pətə̇st, -pətə̇- plural -s. : one who practices nepotism.
Conclusion
Nepotism is workplace favoritism due to relational contact rather than job performance. Oftentimes, the favored individuals might be having a close personal relationship with upper management, such as a supervisor, and are receiving rewarding benefits such as an increase in compensation or an employment opportunity. If a worker is experiencing that their colleague is being favored due to a certain personal relationship, they will most likely feel unfairly treated. This will lead to a potential conflict within your organization and hurt your employee morale and ethics.
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