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Three Causes and Consequences of Nepotism in the Workplace


Nepotism is a type of favoritism that is often extended to friends or relatives, regardless of their merit. This type of favoritism is often harmful to companies and the people who work in them and hinders diversity and talent retention. Below are three causes and consequences of nepotism in the workplace.

Favoritism granted to relatives regardless of merit

Nepotism is a form of favoritism given to family members, regardless of their merits or abilities. According to the Fair Labor Standards Act, employers cannot favor relatives of employees unless they have equal qualifications and are considered a “close family member.” Family members include the employees’ spouses and parents.

Nepotism is generally not considered ethical, although hiring family members or friends are often acceptable in some circumstances. However, it must be clear that the hiring company allows it and that the employee and the employer know about the relationship before hiring. In either case, it is considered nepotism. The term “nepotism” comes from the Latin word ” nepotis, ” which means “to favor.”

Favoritism extends beyond hiring and contracting practices. When people know a public official, they can have disproportionate influence, making it critical to ensure that all sides are represented and that public officials do not rely on the opinions of their family members and friends. For this reason, conscientious lawmakers must avoid the temptation to favor their family members or friends when making decisions. In some cases, this may even mean recusing themselves from voting on issues they are personally involved in.

It corrodes company culture.

Nepotism corrodes company culture in several ways. First, it decreases employee engagement and productivity. Employees want to believe that they will be rewarded for their hard work. If they see that those with connections to the company are getting ahead, they will not put in the same effort as those without.

Nepotism also lowers the standard of talent in a company. As a result, talented employees may seek employment elsewhere, reducing the pool of qualified candidates and decreasing employee morale. Moreover, it is often difficult to retain dedicated and skilled employees. Additionally, nepotism shows questionable morals and tolerance for unethical behavior. Despite its adverse effects, nepotism signifies a poor corporate culture and a significant roadblock to building a happy, productive team.

Nepotism also lowers overall company performance and output. In addition, it affects employees in the power structure, causing them to take on additional work and workload. This also leads to resentment among employees, reducing motivation and work ethic.

It impedes diversity in the workplace.

Nepotism is a practice that can affect the performance and output of a company. Not only does it increase the workload for the people in power within a company, but it can also damage the workers’ morale and the workplace’s overall culture. In addition, nepotism can also lead to an atmosphere of resentment amongst employees.

One of the ways to counter this type of behavior is to enact a formal policy against nepotism. This policy will limit the ability of an employee to supervise and make employment decisions involving their family. However, this policy may conflict with the company’s mandatory bargaining obligations.

It impedes employee morale.

In the corporate world, nepotism is a common problem. Many employees feel that their colleagues are being favored over them. Therefore, it is essential to identify such cases and take steps to prevent them. For example, you can consider conducting anonymous surveys or one-on-one meetings with employees to gauge their opinion on the problem. However, be careful not to hurt the relationship between managers and employees.

Nepotism in the workplace leads to lower employee morale and productivity. People want to feel like their efforts are valued and will be rewarded. However, if they see their colleagues getting ahead while they are not, they won’t work as hard as they should.