On the hiring of kin in organizations: Perceived nepotism and its implications for fairness perceptions and the willingness to join an organization

Nepotism is often condemned, but little is known about what people construe as nepotism, and why it is considered problematic. In five experiments, conducted in Indonesia and the U.S.A., we addressed the question whether the employment of a competent family member is considered just as nepotistic and unfair as the employment of a less competent family member. In Studies 1 (N = 101) and 2 (N = 200), participants construed the hiring of a relative within the same organization as nepotism, regardless of the relative's competence. In Studies 3 (N = 229) and 4 (N = 204), the hiring of relatives was seen as problematic because it violated principles of procedural fairness. Study 4 also showed that nepotism was viewed as more unfair than cronyism (employment based on a social network). Study 5 (N = 173) showed that perceived nepotism can hinder an organization's ability to attract qualified personnel by demonstrating that potential job applicants were less likely to apply for a job at a prestigious but nepotistic organization compared to a less prestigious and less nepotistic organization.