Whenever those within executive positions use their power in an organisation to hire unqualified family members, instead of promoting talented employees, or hiring external, qualified candidates, they’re practicing nepotism.
With nepotism, the employed boss’ family or relatives are treated in a special way as compared to other staff. In case employees are in wrong, these relatives are given a lighter punishment or no punishment at all, leaving the rest of the employees to suffer the consequences.
Justin Racheal, a business leadership coach in Kigali says that nepotism in the workplace is a practice of showing preference toward family or friends, and its roots dig deep in organisations where there is a lack of good corporate governance.
Such kinds of organisations have no system of structures and processes to specify the distribution of rights and responsibilities among the organisation’s stakeholders.
These structures are what articulate the rules and procedures for decision making. When lacking, it’s only inevitable that some high position executives will select someone they know for a position or promotion, she adds.
Racheal stresses that the most obvious effect of nepotism is dissatisfaction and discouragement of employees when their hard work and efforts are not appreciated or recognised, and instead overshadowed by the favoured nonperforming relative who may get promotions and reviews not well deserved.
This usually results in the unavoidable loss of proficient employees, which in turn negatively affects the performance of the organisation.
"Certainly, because of a lack of transparency and good governance practices in the organisation, capital will flow elsewhere. If investors are not confident with the level of fairness and transparency, they will put their money elsewhere and this will lead to eventual collapse-this is because organisations thrive and exist by the grace of investors,” the business leadership coach states.
She carries on that you can tell the signs of nepotism in the workplace when people with undeserving qualifications are hired into good or prime positions, when certain people evade responsibility or engage in any misconduct but face no disciplinary consequences, and if there are unequal performance reviews-someone is definitely not performing but their reviews or appraisals reflect otherwise.
Racheal additionally points out that among other signs include; enforcing documented guidelines when it comes to particular people in the workplace, and a tendency of these members never working their way up. It’s always the same position, same experience over years, and their stay is not challenged in any way.
Robbert Indoli a sales and marketing expert highlights that due to nepotism, talented employees could leave the company to search for employment opportunities elsewhere especially those that would value their expertise and hard work.
When hardworking employees leave the company, there is a possibility of it not succeeding. But also, those receiving favours may be discriminated by their colleagues, thus creating an unhealthy work environment.
Indoli notes that in order to seek solutions, employees shouldn’t keep quiet when they notice signs of nepotism but open up to confidential sources such as HR, though with evidence, and professionalism.
He encourages organisations to provide employees with the freedom to communicate or discuss issues once they see unequal treatment amongst employees by those in managerial positions.
The sales and marketing expert adds that companies should draft an anti-nepotism policy to restrict hiring family members or acquaintances.