Nepotism in the workplace is a form of favoritism in which persons in positions of authority appoint relatives or friends to different jobs. It is the practice of giving preferential treatment to partners, family members, or friends, especially in matters of employment. Nepotism can involve any relative, including a parent-child relationship, friendships, and romantic relationships and intimate relationships. Nepotism in the workplace occurs when a leader within an organization uses their influence to favor particular individuals based on personal relationships.

Nepotism is harmful for many reasons, including the following:

• It can ruin the relationship and trust between staff and leadership, as well as the relationship between staff and favored employees.
• It can prevent an open work environment, making staff unwilling to collaborate with one another and expand the organization’s institutional knowledge.
• It can demoralize employees and destroy a positive work environment.

Although nepotism is not wholly illegal in the private sector, the act itself is unethical in the workplace. Nepotism can also land a business in serious legal trouble if not handled appropriately. To avoid nepotism and promote fairness in the workplace, it is important to set clear expectations through policy, practice, and a strong company culture. Here are some recommendations to help identify nepotism and avoid the practice within a business:

• Offer opportunities for professional growth and encourage autonomy.
• Implement policies that support employees’ mental health and well-being.
• Watch out for key indicators of nepotism, such as hiring family members or friends, promoting them over more qualified candidates, or giving them preferential treatment.

To keep nepotism in check and ensure decision-making is based on the proper criteria, strong leadership is required to oversee the management below. Staff also need to be able to expose instances of nepotism.