THE BENEFITS OF NEPOTISM

Hiring friends and family might actually be good for business

- SHEHERYAR BANURI

MARK ZUCKERBURG, the chief executive officer of Meta / Facebook, recently remarked in a podcast interview that when it came to hiring new staff, his preference was people whose "values aligned in the things that you care about". This, he said, was akin to "choosing a friend or a life partner".

He went on to state that many young people were too "objective-focused" and "not focused enough on connections and ... people".

This speaks to one of the eternal questions for managers in deciding who to hire: Do you choose the candidate who has objectively higher ability, or the one whose values are more in common with your own?

While some would unambiguously select the higher ability candidate, others like Zuckerberg might weigh differences in candidates' abilities against the extent to which they share the values of the employer.

Some would go further and hire family or friends. Many firms actually promote this with employee-referral incentive schemes that encourage hiring individuals of similar characteristics-or at the very least, those who move in the same networks.

The stated purpose of such schemes is to reduce the costs of hiring, increase employee retention rates, and improve employee engagement. There are even guides dedicated to helping managers who hire their friends.

On the other hand, such a buddying approach to recruitment seems to contradict anti-discrimination laws. These have been enacted around the world to ensure that certain groups of individuals are not treated more poorly than others.

For instance, in South Africa the Employment Equity Act is aimed at promoting equity on the workplace, ensuring that all employees receive equal opportunities, and that employees are treated fairly by their employees. Also, given South Africa's past, the legislation also provides a framework for redressing the disadvantages that people from 'designated groups' experienced in past employment practices.