When company management gives preferential treatment or promotes individuals based on family or friendship relationships rather than looking at employee abilities and achievements, this can create injustice that damages morale and work spirit.

 

Finally, employees who feel that their efforts are not appreciated tend to be less productive and feel dissatisfied.

 

This dissatisfaction can spread throughout the team, reducing collaboration and increasing conflict between employees.

 

In addition, employees selected through nepotism may not have qualifications that suit the company's needs, which can hinder the quality of work and overall company performance.





 

What is Meant by Nepotism in the Workplace?

 

Nepotism is the practice in which people in positions of power give jobs or promotions to their friends or family members based on their achievements or qualifications. This practice can take the form of overt job offers to family members or indirect forms of favoritism, namely special actions or treatment given to certain people in a group. Apart from often being found in family businesses where nepotism is not strange, this culture can also occur in large companies and government institutions.

 

In fact, a new study shows that Generation Z is the most likely to benefit from career nepotism, even though they disapprove of the practice. The study also revealed that more than two-thirds of Gen Z had received job offers through nepotism. Survey results from 2,000 respondents showed that 42% of them managed to get jobs or role offers through nepotism. In fact, the impact of nepotism can be very serious, such as reduced employee morale, high employee turnover, and decreased innovation because highly qualified individuals are often not placed in the positions they should be.



 

Is there a Legal Basis Governing Nepotism in the Workplace?

 

Quoting Hukumonline, there are no regulations that specifically regulate the law of entering work using an "insider" in labor law in Indonesia. Regarding recruitment issues, companies have the freedom to recruit employees through several methods, including through insider channels if it suits the needs of the organization.

 

However, in placing workers, companies are required to implement principles such as open, free, objective, fair and equal without discrimination. This is stated in Law Number 13 of 2003 article 32 paragraph (1) concerning Manpower which regulates the principles of human resource management based on the principles of justice and equality.

 

What are the Impacts of Nepotism in the Workplace?

 

When not supervised properly, the impact of nepotism will greatly affect the work environment.

 

Here are some impacts you should pay attention to:

 

a. Reduces Employee Morale and Motivation

 

When family members or friends are prioritized for promotions or hiring, it can make other employees feel that their hard work and qualifications are being overlooked. This perception can result in decreased work engagement and commitment among staff, thereby reducing overall morale.

 

b. Seen as Unfair and Increases Conflict

 

Nepotism can create an environment that is perceived as unfair, where employees feel that their workplace is unbalanced.

 

This can lead to feelings of dissatisfaction and even conflict between employees and management and between employees themselves, which has the potential to disrupt teamwork and cooperation.

 

c. Reducing Productivity and Efficiency

 

When positions are filled based on relationships rather than skills or experience, this can result in less than competent job performance.

 

Additionally, nepotism can also negatively impact the productivity and efficiency of a team or organization as a whole, as less qualified individuals may struggle with job responsibilities that they are not equipped to handle.

 

d. Causing Talent Leaks

 

Potential employees who feel limited in their career growth due to nepostime practices may seek opportunities elsewhere.

 

This talent leak can cause companies to lose skilled individuals, thereby affecting innovation and the ability to compete in the market.

 

e. Destroying the Organization's Reputation

 

Public knowledge of nepotistic practices can tarnish your company's reputation, making it difficult for you to attract talented professionals.

 

This can also potentially impact relationships with clients, investors and partners who may view this practice as an indication of poor management or ethical standards.

 

f. Increases Legal Risk

 

In some fields, especially in public sector jobs or at companies with specific anti-nepotism policies, engaging in these kinds of practices can expose your company to legal challenges and sanctions.

 

What are the Signs of Nepotism in the Workplace?

 

To recognize nepotism in your workplace, pay attention to the following things:

 

a. Unusual Recruitment Practices

 

Pay attention to whether there is a coating process that goes through standard procedures or is not transparent.

 

For example, if a candidate is recruited without a proper interview or without an open announcement of the vacancy.

 

b. Unfair Performance Evaluation

 

Observe whether there are any inconsistencies in the way performance evaluations are conducted. 

 

If there are employees who always get positive reviews even though their performance is average or below average, there may be nepotism practices within your company.

 

c. Resistance to Standard Monitoring

 

Note if there are managers or employees who frequently circumvent standard procedures for approval or oversight, especially in staffing decisions or project assignments.

 

d. Unprofessional Gifts and Recognition

 

Track how rewards, raises, and promotions are distributed within the company.

 

Be aware that promotions and bonuses are often given to less qualified individuals who have personal relationships with management

 

e. Complaints from Employees

 

Pay attention to employee feedback through formal surveys or informal conversations. If there is frequent mention of unfair treatment or dissatisfaction with management fairness, then there may be nepotism in your work environment.

 

f. High Turnover in Certain Departments

 

High turnover rates on some teams or under certain leaders may indicate a toxic environment, perhaps fueled by nepotistic practices.

 

You can investigate the reasons behind employee departures and focus on patterns that indicate dissatisfaction regarding unfair treatment.

 

What are Examples of Nepotism Practices in the Workplace?

 

Nepotism in the workplace is the practice in which family members or close friends of leaders receive promotions or better job opportunities than other, more qualified candidates.

 

Here are some examples of nepotism practices:

 

a. Promotions are Based on Relationships Rather than Merit

 

For example, a CEO's nephew gets a managerial position despite having far less experience than another, more experienced applicant.

 

b. Exclusive Job Opportunities

 

Sometimes positions are not announced openly or communicated within certain networks. 

 

This gives an unfair advantage to those who have a personal relationship with the leader.    

 

c. Unfair Distribution of Benefits

 

Family members or close friends within the company may receive higher salaries, better office space, or more flexible working conditions compared to their colleagues at the same level. This can cause dissatisfaction among employees and create a divided work culture. To prevent nepotistic practices related to employee benefits or compensation, you can use payroll and HR software from Ipresens .

 

With the payroll feature, you can calculate all employee salary components automatically and more accurately. In this way, it is hoped that the HR team can maintain transparency in the payroll process, so as not to raise suspicions regarding nepotism in the work environment.

 

d. Bias in Performance Evaluation

 

Sometimes, family members or friends get favorable performance reviews without reflecting their actual contributions or accomplishments.

 

For example, mistakes made may be overlooked, while strengths are emphasized, resulting in non-objective performance reviews.

 

e. Self-protection from Disciplinary Action

 

It is possible for family members or close friends at the company to avoid disciplinary action, even when they violate company policy.

 

This could undermine trust in the policy and raise legal and ethical issues.

 

What Steps Can HR take to Reduce the Impact of Nepotism?

 

As HR, there are several strategic steps you can take to manage and reduce the impact of nepotism in the workplace, namely:

 

a. Create a Clear Anti-nepotism Policy

 

Create and implement a comprehensive policy to clearly define what nepotism is and the consequences for violators. Include guidance on recruiting, promotions, and other areas where practices of nepotism may arise. Make sure this policy is included in the employee handbook and is known to all employees.

 

b. Encourage Open Communication

 

Cultivate an environment where employees feel comfortable reporting suspicions regarding neoptism without fear of negative retribution. This may involve establishing an anonymous feedback system or appointing a specific person to handle such complaints.

 

c. Transparency in HR Processes

 

Maintain transparency in all HR processes, especially in recruitment, promotion and performance evaluation.

 

Announce job vacancies internally and externally to ensure fairness and openly explain the criteria and processes used in making these decisions.

 

d. Research for Managers and Executives

 

Conduct training sessions for all managerial and executive positions on the impact of nepotism, as well as the importance of maintaining fairness in all decisions made. Apart from that, also discuss how to manage personal relationships with professionalism within the company.

 

e. Regular audits of HR Practices

 

Conduct regular audits of HR practices to ensure compliance with established policies and to detect any irregularities that may indicate nepotism. This step helps identify problems before they become more complex problems.

 

f. Conflict of Interest Declaration

 

Develop requirements for all employees and management, when they want to make statements regarding nepotism. This helps HR to monitor where nepotism occurs and take necessary preventive measures.


 

As an Employee, How do you deal with Nepotism Practices in the Workplace?

 

If you feel you are being treated unfairly due to nepotism or see nepotism in the workplace, the first step you can take is to talk to your boss or the HR team.

 

Additionally, here are some ways to deal with nepotism:

 

a. Uphold your Professional Values

 

Determine yourself to always uphold professional values, even though you may be treated unfairly due to nepotism. This means you have to stay disciplined with your time, meet deadlines, and respect your coworkers. Getting involved in conflict or losing your dignity will only reflect badly on you. So, avoid unprofessional behavior that could harm yourself.

 

b. Document Everything that Happens

 

If you notice nepotism in the workplace, be sure to document everything that happens. Making claims verbally is often difficult to believe, so try to compile well-documented evidence and facts. Record all events, conversations and emails. This documentation will be very useful if one day you need to file a complaint or take legal action.

 

c. Ask for Opinions or Advice

 

Another way to deal with nepotism in the workplace is to ask for advice from other colleagues or mentors who may have experienced a similar situation.

 

They may be able to provide advice based on their experience. However, you need to choose wisely the people you ask for advice.

 

d. Take Care of your Mental Health

 

It is important to recognize that nepotism can have a detrimental impact on your mental health and wellbeing. When you feel treated unfairly, stressed and lose self-confidence this can become a serious problem.

 

In the midst of these conditions, take time to care for your mental health and well-being. Find time to do physical activities such as exercise, walking, or spending time in nature to reduce stress caused by work.

 

e. Consider the Option to Quit

 

Consider two questions when you encounter nepotism at work: is it harmless or is it detrimental to your career and growth?

 

If the situation is not disturbing or does not affect you significantly, it may be better to ignore it and focus on improving your skills and knowledge without losing positive work enthusiasm.

 

However, if nepotism upsets your balance and there is no way to adapt, consider the option of seeking a new opportunity in a workplace that is fairer and promises better growth.

 

Conclusion

Based on the article above, it can be understood that nepotistic practices in the workplace not only threaten justice, but also have the potential to damage the work environment as a whole. Employees who feel that promotions or opportunities at work are not based on their achievements and qualifications, but rather on personal relationships, often feel unappreciated and lose motivation.

 

This can reduce productivity, increase employee turnover, and create tension among teams. In addition, the impact of nepotism can also harm a company's reputation, reduce the attractiveness of potential talent, and even increase legal risks. Moreover, this practice can hinder a company's innovation and progress because key positions may not be filled by the most competent individuals. To overcome nepotism, it is important for companies to implement clear and transparent anti-nepotism policies in all matters, including the compensation process.