What Is The Real Cost Of Hiring Your Friends?

Many clients hire us for strategic planning and management to help them grow their businesses. In our process in evaluating these businesses, we get to see the intricate ways many businesses function. Some run like a well oiled machines while others seem like utter chaos. Often times that chaos runs deep in the business processes and becomes a roadblock or sand in a machine.

While other organizations elect to hire obviously unqualified candidates for positions employees themselves admit not knowing how to perform. I wanted to take a deeper look at this.

Forbes reports that internal friendships might make them more attractive as an employee but also because the candidate has a reputation to protect with his or her friends, and feel an obligation towards them and the firm. In many government offices, Mayors place friends and family can usually be counted on for loyalty, and they know their strengths, according to Santa Clara University. Cronyism occurs within a network of insiders-the "good ole' boys," who offer favors on each other. The main problem with such practices is incompetence. In 1883, the American Civil Service Act was passed because so many patronage jobs were being filled by people where their only qualification for employment was their unwavering support for a party or candidate.

Corporate or small businesses can also fall victim to favoritism which weakens office morale, public faith in the integrity of the organization and brand. In some businesses, the only criteria for a hiring a friend is that fact they are their buddy. What about the candidates inability to perform the job not to mention the staff members who have to compensate in additional workload due to nepotism? Not to mention how other employees will not put the extra effort to get promoted and morale will take a downhill turn because resentment and indifference can lead to reduced productivity as well as employee turnover.