Nepotism and cronyism is widely frowned upon. But there is no legal obligation to prevent it and, according to April 2023 research, workers often get their job through a personal connection. So what can be done to ensure fair recruitment process that ethically hire the best possible candidate for the job? Equally important is to manage relationships with existing employees and being open about what to do is they want to hire a friend or family member?
“If personal connections are subject to objective hiring processes there’s no reason for staff not to refer their friends and family,” said Applied’s CEO to HR magazine.
How to manage cronyism and nepotism at workplace
Jonathan Maude, chair of Vedder Price’s UK/EU employment law committee:
“While it remains the case that there is no explicit obligation on employers to prevent nepotism or cronyism, we need to ensure that the company or organisation recruits the best candidates for the roles available as well as protecting the employer from potential discrimination claims. The critical issue for is to know how to manage the risks, and sometimes those in charge of the business.
“Essentially, employers need a best-practice toolbox to deal with these issues and protect the employer at the same time, from the initial advertising and promotion of the role to the questions asked at interview and the reasons for shortlisting one candidate over another.
“Best practice includes having written recruitment and hiring policies in place. This element of rigidity and conformity allows to show the reasons why one candidate was better suited to the role and to stand up to examination in the case of a claim.”
Khyati Sundaram, CEO, Applied
“Personal connections shouldn’t play any role in hiring decisions. Only those with friends in high places benefit from nepotistic hiring practices. Affinity bias means that these benefactors are likely to look and sound like those who already dominate top jobs: white men.
“But if personal connections are subject to ethical and objective hiring processes – the same as everyone else – there’s no reason for staff not to refer their friends and family. To conduct ethical and objective hiring processes, employers must first advertise all roles externally (and to diverse talent pools).
“Then companies must anonymise applications, score applications blind and structure interviews to prevent personal connections and affinity bias from influencing hiring decisions. This is the fairest and most accurate way of screening candidates and predicting performance. And when teams focus on candidates’ demonstrable skills, they can hire the best person for the job regardless of who they are and who they might know.”
Hiring the best candidate ensures cronyism and nepotism don’t feature
Jonathan Firth, vice president and head of recruitment solutions UKI, LHH
“When looking to hire, employers should always hire the best candidate for both the role and the organisation, despite who they may know or have had recommended, as the quality of a candidate directly impacts success. Cronyism has a big impact on employee morale as incumbent employees can feel discouraged to invest and develop their career when someone could swoop in at the same level purely due their connections and not necessarily their skills or experience.
“Many organisations offer incentives for employees to recommend candidates for roles, but that is not a sure-fire guarantee that the person they suggest is the best placed. Where push-back arises, it is best to explain that the suggested candidate isn’t in line with the job description at this time.
“Structured interviews and procedures are crucial to considering whether someone is the right fit for the job and shouldn’t be bypassed.”
Derek Mackenzie, CEO, The IN Group
“Before hiring for a role, HR and recruitment teams must clearly define what they need in terms of experience and expertise, to make sure they bring in the right fit. It may be that they need a consultant to help oversee the implementation of a new project or a permanent hire to bolster a specific team, but above all else, businesses are hiring employees to drive value.
“There should be transparent hiring processes with a focus on bringing in quality staff that meet specific role requirements. This reduces the risk of nepotism in the workplace and strengthens organisational culture by promoting fairness.
“There may be occasions when hiring a friend or family member can have benefits, coming with a first-hand reference. But only if they meet the specific requirements of a role. Even if that is achieved, there is always a risk that nepotism disgruntles other staff members, especially if it filters through into areas such as promotions, so HR and recruiters must be careful when making those decisions.”
