Hiring friends and relatives in the workplace might initially seem like a good option, but it can have a negative impact on your business. Although it isn’t considered unethical to hire friends and family members over other, highly qualified individuals, it can certainly hurt your business in various ways. Some ways in which nepotism can destroy your business are discussed below.
1. Destroys Employee Productivity
Managers often show appreciation to the people they know well and this partiality could lead to less employee productivity. No matter how poor their performance or work ethics are, they have a tendency to go unnoticed. Employees that put forth a lot of effort and deliver quality work, however, are often overlooked.
Moreover, employees tend to perform well if their motivation levels are high. The employees won’t be motivated to give their best at work if they see beneficiaries of nepotism getting promoted without putting in any effort. As a result, it leads to less job satisfaction and poor productivity of the employees.
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2. Promotes Toxic Environment
If there is nepotism at your workplace, you are unintentionally promoting a toxic environment. Nobody enjoys working in a toxic environment that can increase stress levels and cause job burnout. Nevertheless, nepotism makes a workplace toxic, which impacts negatively on the organization’s ability to succeed. Nepotism can hurt your business by causing conflict and mistrust among coworkers. You risk losing your employees’ respect, damaging your business’s reputation, and even inciting wrongdoing.
Furthermore, employees feel unappreciated and uneasy when they witness nepotism. This occurs as a result of partiality, which makes the workforce feel depressed at work. Also, employees continuously worry that whatever they do will be reported to the manager so they avoid interacting and engaging with their coworkers.
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3. Increase In Employee Turnover
Employee turnover is one of the negative effects of nepotism at the workplace. Turnover will increase because your employees will realize that working hard and going extra miles won’t get them anywhere. The beneficiaries of nepotism get promotion and receive all the appreciation by their supervisors without putting any effort. On the other hand, employees putting extra efforts are not valued by their managers. As a result, the employees decide to switch jobs in quest of better possibilities where their efforts will be acknowledged.
Furthermore, turnover is not the only loss caused due to nepotism, but also you will have to invest a significant amount of time and money in hiring, and training new staff. Moreover, the productivity will be reduced, which will directly impact on the organization’s success.
In my point of view, nepotism may have some advantages too, but they ultimately aren’t worth the stress it could put you through financially and emotionally. Bottom line, it’s never a good idea to hire a friend or family member in your company.
To sum up things nepotism may have some advantages too, but they ultimately aren’t worth the stress it could put you through financially and emotionally. Bottom line, it’s never a good idea to hire a friend or family member in your company.