Are Nepotism and Favoritism Probable for Lawsuits?
An Inside Tip for Business Owners
I am speaking from experience from working in large corporations to working in small family owned businesses. In large corporation’s nepotism and favoritism exists; however it is not encouraged in some and not allowed in others.
Each employee received a company Handbook when hired in large businesses; one knows the rules of the company as well as the policies. In large corporations there is a legal department; where the company lawyers are in charge of the legalities of protecting the corporation and its CEOs and department heads.
In some small businesses nepotism and favoritism reigns and operates mostly without a company Handbook existing. In other words, they are flying by the seat of their pants without legal assistance; until needed and then sometimes it is too late.
Savvy small businesses operate like a large corporation with a company Handbook and with an attorney on speed dial for quick service. These small businesses do not hire relatives nor do they hire friends of the owners.
Family Owned American Businesses
Over 75% of America's businesses are family owned, Therefore, savvy owners need to have their legal ducks in a row and know the negatives and positives in hiring relatives and friends.
In small town America and in the cities Nepotism is prominent. Most new employees are not aware of it until after the fact.
Have You Heard the "Nepotism Bell Ring?"
Do not despair should this happen to you. Most small towns hire their family members in their businesses so everyone knows beforehand about the nepotism.
Therefore, applying for a job in this situation with that knowledge is the choice of the applicant.
In cities sometimes one finds out about nepotism after becoming an employee. In most cases it will not affect the new employees until they start to move up the career ladder.
Then, the Nepotism Bell sounds loud and clear when one experiences being overlooked for a promotion; which was given to the CEO’s son, daughter or other relatives.
Have you heard the Nepotism Bell? Lawsuits are going on daily about someone in power who has hired relatives instead of the non-relatives.
Therefore, these relatives get benefits in health insurance, benefits and retirement. In a large percentage of cases it will be in government offices that this unfortunate act occurs.
The non-relatives who were not hired in the government agencies will be the ones in essences paying for the nepotism's benefits including retirement. What part of this is fair? It is the reason for many lawsuits.
Nepotism is a form of discrimination against an employee who is not related to the owner, manager or supervisor. Nepotism might fall under the discrimination laws then, if an employee can show proof of discrimination filing a lawsuit might be a sound judgment step.
Many lawsuits occur because of favoritism for hiring friends and if you are a savvy business owner it is best to think before hiring. Other employees will watch for preferentialism instead of having their mind on their duties. If employees feel discriminated against then a lawsuit could result from discrimination in the workplace.
All businesses should have an “Employee Handbook” that without equivocation states the Policies and Procedures in hiring non-relatives and relative employees. Make sure every employee has one when hired and each returns a signed form stating they read and understood the handbook. Keep the signed form in their personnel file.
If you think your small business does not need an Employee Handbook think again. In court it will be the boss against the employee in a situation: he said/she said. This can only get worse for the businesses owners if it goes to court without written words stating the policies and procedures of the company. Business owners can end up in the abyss of legal woes.
Treat All Applicants and Employees Equal
If you insist on hiring relatives and friends make sure their screenings are like the other employees, drug screening, background checks, references completed including tests given to the non-relative employees. You will probably need to interview with a witness to confirm the conversation and if you are shrewd have notes taken.
A word to the wise a relative or a friend who has bad references should never be hired because they will be a crimp in running a smooth workplace environment.
No business needs imprecision ambiance among the employees workplace. Tell everyone before the interview that you are legally bound by your Employee Handbook in hiring anyone.
Employers first consideration will always be the employees and the business; which furnishes a livelihood.
Before Hiring Friends or Relatives---Announce it in a Staff Meeting
Announcing the of hiring a relative or friend must happen in a staff meetings. And ask if anyone has anything to say about it positive or negative please share your thoughts I welcome your input.
This way it is no surprise to anyone; consequently letting the employees know their thoughts and opinions are relevant.
Preparing ahead is an intelligent guideline for any owner. Therefore, the business might benefit from tax breaks in hiring relatives it is best to check with your attorney if you do not know the current tax laws.
Since the business is the owner’s source of revenue owners should not feel remorse for not hiring a relative or a friend who does not qualify after screening. The handbook’s policies and procedures are the legal written rules and regulations of the business followed by all.
Business Owners Maintain a Professional Business
We are not living in the time of our parents or grandparents in reference to employment. It was a different time when people were just grateful for a job and suing the hand that fed one was just not done.
Business owners should think of their employees as a legal contract that has conditions and agreements in the workplace.
It is very important for owners to conduct themselves and their businesses in a professional manner. Respecting works both ways in any business relationship and it makes a more harmonious environment for everyone.
PurvisBobbi44 is the sole author of this article and if copied anywhere else on the Internet or printed in magazines or books it was taken without written consent and is strictly prohibited.
Nepotism in the Workplace
- Employee Issues in the Workplace
Nepotism depending on the person can work out well. However, it can cause lawsuits from employees who believe the relative is not qualified for the position and does not adhere to the rules of the company.
A Savvy Boss Gives Birth to Productive Employees
- A Savvy Boss Gives Birth to Productive Employees
A Savvy Boss --- If one is fortunate enough to have a good Boss who appreciates one's dedication and hard work---then life is wonderful. And continued training for young employees for personal skills.
Nepotism or Favoritism
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© 2013 PurvisBobbi44
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