HOW TO MANAGE NEPOTISM IN A COMPANY

September - October 2020

Below you will find a guide and tools to navigate the choppy waters that can arise when one of your subordinates is related to a high-ranking executive in your company.

As a manager in a large company, your success doesn't just come from your team's results. It also depends on the evaluation of your leadership style by your boss and other high-ranking executives. Your potential for growth will be evaluated, in part, by how you treat your direct employees. So when a superior suggests that you be tougher on a low-performing subordinate or support an employee with potential, you take their feedback seriously. But what happens when one of your employees is related to one of your company's senior executives?

Managers in family businesses traditionally let the owners make business and leadership decisions. However, managers in non-family businesses who work in a position between an executive and a family member must lead while navigating a delicate political map with their shareholders. They may encounter dilemmas that go beyond normal management challenges.

A recent study shows that two out of three managers feel uncomfortable communicating with their subordinates. Imagine the additional discomfort of giving a performance review to the son of one of the general managers of a company.

Plus, when you become insecure with one of your subordinates, your team begins to realize that the boss doesn't treat everyone equally. If they suspect that there is some favoritism, morale in the group may decline. And because everyone—your boss, your colleagues, and your team—is interested in how you relate to your subordinate, you'll get feedback from all sides about how you're managing him or her.

By following these strategies, you can be an effective boss and feel confident while managing the political sensitivities of everyone around you.

THE BEST WAY TO UNDERSTAND HOW WORKING TOGETHER AFFECTS YOUR SUBALTERN IS TO REDUCE THE EMOTIONAL AND MENTAL DISTANCE BETWEEN THE TWO OF YOU.

Be honest with your subordinate

In theory, your employee's family relationship in the company shouldn't affect how you work together. But it is wise to assume that it will have repercussions even if everyone ignores it.

The best way to understand how working together affects your subordinate is to reduce the emotional and mental distance between the two of you. Express your genuine concern and invite him to do the same, which starts with an honest conversation.

Colin (not his real name) was a CEO I coached who had the daughter of the company's senior vice president as a direct employee. He had a very good relationship with his subordinate, but, as he himself told me: “Not a day goes by that I haven't thought about what she is telling her family about me.”

We suggested that he organize an informal lunch outside the office to exchange ideas and concerns about working together. After sharing her concerns about how to handle her safely, she told him that the other team members “handled her with a grain of salt.” It was evident that some colleagues resented her status and often withheld information she needed for her work. At the same time, others tried to make friends with her to network with her mother.

Colin told her: “Your relationship with your family shouldn't matter, but if we ignore it, it minimizes the struggle we're both going through. My commitment to you is to be fair and transparent, and make decisions based on merit, not family relationships. I ask that you be honest and fair with me as you work and advance in the company, so that we can take each other's best intentions for granted.”

WHEN YOU ARE THE MANAGER OF SOMEONE WHO BENEFITS FROM HAVING FAMILY RELATIONSHIPS IN THE COMPANY, THE REST OF THE TEAM MAY ASSUME THAT THAT PERSON IS THE MANAGER'S FAVORITE.

Addresses issues of impartiality

A recent study revealed that 47% of employees feel that their boss has a favorite. When you are a manager of someone who benefits from having family relationships in the company, the rest of the team may assume that that person is also the manager's favorite. This leads to a perception of unfairness or unintentional bias: if you congratulate your employee for a job well done, your team may resent it; If you criticize the employee, the person may feel that they were treated unfairly and that you are being unduly harsh in proving that your opinion is not biased.

To avoid this, establish objective performance measures that apply to everyone. When you develop success criteria that can be tested and measured by others, you will be able to lead with impartiality. Additionally, it establishes a clear definition of the different roles within the team. This will help avoid confusion about how you are divvying up work across the team.

Seek to be aligned with critics, do not seek their approval

Your colleagues may criticize how you work with your direct employee based on their own interests. You must communicate with your employees so that they can understand what your intentions are. However, you don't need to seek their approval when making decisions as a manager. Effective leaders listen to the concerns of others with respect and openness, but also have the courage to put forward their own procedure, even if it feels bad to other people.

by NIHAR CHHAYA*
© The New York Times Syndicate