From our current newsletter
Nepotism pros
Reduced recruiting costs: Nepotism allows firms to inexpensively identify a pool of candidates for positions. Of course to realize true cost savings the individual must be qualified for the position.
Lower turnover: This has certainly been the case at Dunhill and other companies we work with that allow the hiring of relatives. Family members are often the most dedicated employees and studies have found that absenteeism is reduced by hiring of relatives.
Commitment and ownership: Working on the same team with other relatives creates a greater sense of commitment and personal interest in the success of the company. Employees who know that their family members may be impacted by their actions have an extra reason to want the company to grow and prosper.
Higher level of loyalty: Speaking personally, the opportunity to work with work with my daughter has elevated our relationship to a new level of trust and loyalty. While it’s true employees who aren’t related demonstrate loyalty, a blood relative has more “skin in the game.”
Higher level of morale: A “family-type” environment can boost the morale of all employees and positively impact customer relations. Our staff has regularly participated in family gatherings and are not strangers to the joys and sorrows of our personal lives.
And The Cons
Personality conflicts: A new employee who is a relative will bring a lifetime of baggage to the job. Personal issues and difficult relationships at home can make it difficult to work together effectively. Or, when workplace differences occur, inappropriate workplace behaviors such as shouting or pouting often arise and when such differences enter the home it can put a strain on the marriage or family relationships too. These behaviors are, of course, unprofessional and inappropriate and have a negative effect on the other employees who have to cope with this uncomfortable atmosphere.
Favoritism: Nepotism has the potential in hiring, promoting, and salary and bonus decisions. We’ve all heard stories of the favored son or daughter who took over from dad and subsequently destroyed the company. Any succession plan should take into account the capabilities of the heir apparent and properly prepare him/her for the leadership role.
Discipline: Nepotism could lead to disciplinary problems for managers who are in a position of authority over an owner’s family member. Clearly defining the chain of command early on will help mitigate these kinds of issues.
Confidentiality: It’s hard to keep a secret especially in a family but it should be made clear that some conversations must remain confidential, especially those that could affect business continuity. Keeping non-employee family members informed is probably a wise course of action but they should clearly understand that they know what’s public and what’s not.
Empowerment: Life as the “boss’ son” can be tough. More is expected which adds even more performance pressure. When a promotion is given some may ask if it was given on performance or merely being a member of the “royal family.” The latter has the potential of discouraging other employees who are striving for advancement to become disillusioned and seek other employment.
Summary: This article shows that there are advantages and pitfalls when bringing relatives into the workplace. At Dunhill, we’ve successfully navigated these obstacles and truly enjoy each other’s company in and out of the office.
Neil G. Whitman CPC
Dunhill ® Staffing Systems is an independent staffing agency headquartered in Charleston, SC. We specialize in recruiting and placing professionals in engineering, sales & marketing, accounting & finance, and administrative roles. We offer full-service capabilities from temporary and temp-to-hire staffing through direct hire, permanent placement.
