L03 Nepotism and Word-of-Mouth Recruiting

Civil service laws prohibit nepotism, which can be defined as favoring friends, relatives, or associates when hiring. It is discouraged by many large private-sector employers, though not uncommon among smaller employers.

The reasons for the practice are not difficult to comprehend. A position is available; a relative needs a job. Presto! No recruiting costs are incurred and some knowledge about the work ethic of the family is had. The problem is that new hires from the same family as people already working for an employer will be similar – if not identical – as to protected class characteristics. Most often, that has worked against inclusion of African Americans in a workforce.

Word-of-mouth is a process where knowledge about job openings is disseminated by current employees. That system limits the recruitment pool to family and friends. As with nepotism, it excludes members of other protected classes and may be considered a discriminatory form of recruiting.

Unions that require apprentices or new members to be sponsored can have the same outcomes if the membership is not diverse.  

Unless the demographics of a region are skewed or diversity is difficult to achieve based on the percentages of applicants qualified for a position, outcomes say it all. Absent those factors, a lack of diversity in a workforce is a function of recruiting methods that warrant review.

Next, let’s look at enlisting day laborers as a final example of a recruitment method.