HR Glossary  >   Nepotism


What is Nepotism?

Nepotism is a term used to describe the unfair practice wherein the one in power favors an individual belonging to the former’s family. It is regarded as an unfair practice because it ignores the other’s performance, achievements, personality, etc. Nepotism is observed in terms of greater opportunities, increasing payments or benefits, and so on, offered only to the family members or relatives.

Example of Nepotism in the workplace :

  • A company had an opening for Chief Technical Officer (CTO)
  • The HR manager interviewed about 10 people
  • Of that 10, one of them was the son of the CEO
  • After the final interview with the CEO, his son was selected for the position
  • Although the CEO's son had no experience, not even matched with qualification level and skills in comparison to others
  • He was chosen only because he was the CEO's son

Frequently Asked Questions

What are the negative impacts of nepotism in the organization?

Nepotism can highly impact the organizational culture and values. The negative impacts are:

  • Demotivated employees
  • Loss of trust in the organization
  • Increased employee turnover ratios
  • Recruitment of non-deserving people
  • Increased frustration levels of employees

How can nepotism be prevented in an organization?

Taking the following steps can prevent nepotism in the workplace:

  • Equally treating all the employees
  • Framing and implementing anti-nepotism policy
  • Providing equal opportunities to all
  • Interviewing and examining the friends or family in the same way
  • Being honest with the employees
  • Raising voice against anything unfair


How are nepotism and favoritism different?

Favoritism and nepotism are considered similar, but they differ from each other. Nepotism favors friends and family, whereas favoritism favors a specific person over others, regardless of who they are or in what position. Both have a negative impact on the organization.

Modify your HR and payroll tasks with factoHR today

Let your HR and workforce focus on most important business decisions while factoHR can reduce the burden of daily activities of the organization.

Request Free Trial