It’s not what you know, it’s who you know - The disadvantages of hiring friends and family

It’s not what you know, it’s who you know – The effects of nepotism in the workplace are far reaching and can impact employee morale, culture and even threaten business growth.  Nepotism is a form of discrimination in which family members or friends are hired or promoted for reasons that do not necessarily have anything to do with their experience, knowledge or skills. When personal relationships appear to take precedence over actual qualifications, the adverse effects are likely to be felt by all parties involved. 

Why does nepotism still happen?

This kind of prejudice still occurs due to a basic principle that many follow, often without realising, and that is to do with choosing what is more familiar. The saying ‘better the devil you know’ will allow people to choose someone that is ‘passable’ against someone that may be far better but still has a looming question mark around them. Some managers see that it can also be easier or quicker to choose what is under their roof rather than to seek out what may better suit their business goals.

What are the outcomes of nepotism?

One of the main complaints in a company that operates through nepotism is the obvious lack of fairness. It can result in dissatisfaction among workers and employees may have less incentive to perform if they feel that the path to promotion is undermined by nepotism. As a consequence, a company employing such tactics may find its employees looking for jobs where their talent is better recognised. Another pitfall is that by providing opportunities that are not based on merit means that managers will not give other employees a chance to develop, thus not raising the level of competency of employees or that of the business. Promoting under-qualified individuals into more senior roles can lead to an erosion of the company's leadership skills.  Nepotism can make employees feel unimportant and that their contribution to business is insignificant which can ultimately impact overall productivity and growth.  

What is the best way to tackle it?

The best way to prevent nepotism and avoid infringing the rights of the employees is to make employment decisions based on objective performance related reasons such as their skills, competencies and experience. By providing fairness and equality, employers can earn their workers’ loyalty and dedication, boost morale and achieve a more harmonious and productive workplace.

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