Workplace Nepotism: What To Look For And How To Handle The Situation Professionally

Nepotism is hardly uncommon in the workplace. It may not be illegal—‌though some states do have conflict of interest laws—‌but it can be immoral. It does more than damage the office morale too. Nepotism in the workplace can open up trouble for the company as well with potential lawsuits and complaints.

There is a difference between nepotism and hiring family members. So, how do you identify workplace nepotism, and how do you handle it if it happens in your workplace?

We will go over what workplace nepotism is and the two types, how to spot nepotism, and how to handle it to help you incase you ever come across it.

Key Takeaways:

• Nepotism is when someone in the position of power uses their influence to higher a friend or family member even if they are unqualified for the position.

• When handling workplace nepotism it’s important to act professionally, document all instances of perceived nepotism and confide in the right person.

• Nepotism creates an unhealthy work environment and it can reduce morale and productivity and increase turnover rates.

• Nepotism can come in the form of someone exhibiting unprofessional behaviors, receiving special treatment, and held to a different standard than other employees.

What Is Workplace Nepotism?

Nepotism is a form of work discrimination where those in positions of power, such as managers or members of the executive team, use their influence to hire family members or friends for reasons that have little to do with their qualifications, experience, or skills.

Though it is most often associated with hirings and promotions, it is not necessarily confined to those situations. For example, it is also considered nepotism when family members or friends of the managerial or executive staff receive special treatment or are held to a different standard than their fellow employees.

If family or friends receive desirable assignments or projects, preferred shifts, or additional privileges without having earned them, this is also considered nepotism.

However, it should be noted that there is a difference between nepotism and hiring close to home. Hiring family members or friends who are qualified for their positions and are the right fit for the job can actually benefit the company. This can help to build a close-knit team that works towards the same goals and objectives cohesively.

The Two Types of Nepotism

There are two types of nepotism in the workplace. One has to do with the hiring person, and the other has to do with the employee.

1. Reciprocal nepotism. Reciprocal nepotism is when someone with a position of authority hires a family member or friend, and that person accepts the position based on certain factors: interdependence (typically financial dependency), the extent of the exchange, and cultural norms.

2. Entitlement nepotism. Entitlement nepotism is a bit different. This type of nepotism is when the hired family member or friend feels a sense of entitlement simply because of their relationship with the boss.

   It leads to bad behavior and sometimes hostile situations. This is most common in family-owned businesses but can occur in any situation.

How to Spot Nepotism in the Workplace

As mentioned above, the simple act of hiring a family member or family friend does not always equal nepotism. I know that can be confusing, but sometimes hiring someone close to them (them being the boss) can be the right move.

It is nepotism when there is unethical behavior involved in the hiring of that family member or friend, but not all situations are considered nepotism. For example, it would be considered nepotism if the employee is:

• Underqualified. Someone is chosen for a position or promotion simply because they are a family member and not the most qualified.

  If the person hired is clearly not suited for the position they have received or given an opportunity over someone who is clearly the better fit, this is nepotism.

• Held to a different standard. The family member is not reprimanded despite poor performance or bad behavior. If the family member in question is constantly making mistakes, missing deadlines, showing up late, breaking the rules, etc., and not being reprimanded in any way, then it is likely nepotism.

• Receiving special treatment. They may be given special treatment or adhere to different rules and regulations than other employees. This can be anything from shortened work hours to increased spending abilities to additional privileges.

  This could also be the family member or friend receives better work assignments, more ideal shifts, or sought-after projects despite not necessarily deserving them.

• Let off easy. The workload is not distributed evenly. It is an example of favoritism when family members or friends are given less work than others of the same position.

• Unprofessional behaviors. If the family member or friend starts to demonstrate unprofessional behaviors such as being rude to other employees or talking back to their manager could be a sign of nepotism. This behavior is likely to continue because the family member/person with power is unlikely to stop the behavior out of favor for their friend or family member.

• Other employees have complained to Human Recourses. If your employees have addressed their concerns of nepotism with you or HR then it’s a sign of nepotism that should not go unnoticed. Meet with these employees and learn about what they have observed. Make sure to document these events before making assumptions or taking actions.

How to Handle Workplace Nepotism

Workplace nepotism can’t really be avoided. It is a common occurrence in many companies and organizations. If you feel like nepotism is occurring in your workplace, there are a few ways you can handle it.

Of course, you can ignore the situation. Nepotism isn’t illegal, so there are no legal grounds for your complaints. But, it is immoral, and it is bad for the company. Plus, it can be infuriating for the other, qualified employees. So, you may find yourself wanting to take action.

If you do want to do something about it, there are steps you need to take:

1. Make sure it is actually nepotism. Just because they hire or promote someone who is a family member or friend of someone higher up in the company does not necessarily mean this is an act of nepotism.

   The person receiving this opportunity may truly be the right fit for this position. Try to put your personal feelings aside and assess the situation as it is. When you remove your emotions, you can look at the facts of the situation and see it for what it is instead of what you believe it to be.

2. Act professionally. It goes without saying that you should act professionally in the workplace. However, this is a situation you need to handle maturely and with professionalism.

   Even if the family member or friend is acting unprofessionally, you should not stoop to their level. You can not control anyone else’s behavior but your own. So, keep control of your behavior and handle the situation with tact and maturity.

3. Document instances of perceived nepotism. If you are planning on taking your complaints to your Human Resources representative, then you will need to have documentation and proof that your boss is displaying favoritism or hiring (or promoting) for the wrong reasons.

   This will end up as a your-word-against-theirs situation if you can’t back up your claims. If you want to escalate the issue and bring it to someone’s attention, you will need to be specific and provide actual proof, not just generic complaints.

4. Confide in the right person. Sometimes going to HR directly isn’t always the right choice or an option. Try finding someone within the company that is a third-party to the situation who may be higher up with power than you.

   Bring them the documentation and anything else and they will be able to help you determine if it nepotism or not. If it is this third-party person can help you determine the right course of action without causing backlash to you.

5. Be prepared for possible backlash. Even with all your evidence gathered, you should still be prepared for any possible backlash. Bringing this information to HR or anyone else would make you a whistleblower so be prepared to be a target for extra scrutiny, not great assignments, and possible unfair evaluations.

The Negative Impact of Workplace Nepotism

Nepotism is more than just an immoral, yet expected, occurrence in the workplace. Sure it can lead to short-term anger and feelings of betrayal, but it can also go deeper than that.

Workplace nepotism can lead to long-term damage to a company or organization.

Workplace nepotism:

• Can lead to discrimination lawsuits or complaints. While nepotism itself is not illegal, it can still lead to legal trouble. It does not go unnoticed when employees are looked over for promotions or are not hired in favor of someone who is clearly underqualified. And, those who have been ignored or passed over can feel that there is discrimination in play.

  If someone feels they were treated unfairly, they can find grounds to press charges or file a complaint against the company.

• Can lead to higher employee turnover. When employees don’t feel they are being seen or feel that they are being treated unfairly, it is no surprise that things sour quickly. If employees see that underqualified people are getting hired or promoted in their stead or privileged employees are treated differently, they are not likely to stick around.

  Higher employee turnover does more than make it difficult to maintain a full staff. It does not go unnoticed when a company is constantly hiring employees. Higher turnover will lead to more difficulty hiring employees—‌and the employees they do hire may not be up to the same standard as they were previously.

• Can lead to lower morale, lower work quality, and lower productivity. It is hard to stay motivated in a job you don’t feel appreciated for.

  When you know that the boss’ kid will get that promotion or the project you’ve been hoping for, it does not leave you in the best frame of mind. With lower morale comes lower work quality and lower productivity.

  Again, this will impact the company in the long term, not just the individual employees. Lower productivity leads to higher costs. Lower quality leads to more difficulty retaining customers. And, lower morale leads to even higher turnover.

• Can lead to poor talent retention. High turnover is one thing, but if you promote those who are not qualified over those who are, it won’t be long before those talented employees move on. The talent pool will shrink until all that is left are the barely qualified.

  A shallow talent pool can only harm the company. Work won’t be near the same quality as before, and the company’s reputation can suffer.

• Can damage company culture. With lower morale and questionable morals, company culture won’t be nearly the same. Since company culture is so important to potential employees and often customers, this too can have a detrimental long-term effect.

Author

Samantha Goddiess

Samantha is a lifelong writer who has been writing professionally for the last six years. After graduating with honors from Greensboro College with a degree in English & Communications, she went on to find work as an in-house copywriter for several companies including Costume Supercenter, and Blueprint Education.