To: Jack Brown, Human Resources President

From: Fredy Roldan, Lead Advisor

Date: March 1, 2017
Subject: Nepotism in the Hiring Process

Over the past few months, certain departments have been slacking off and not achieving
peak performance or meeting the high standards McJack International sets out for all
employees from the custodians to the CEO himself. In this memo I will be explain the
issue, several suggestions to address the issue and a list of the consequences if the issue
goes unattended.

After reviewing some of the recent new hires, I came to realize that some of the
individuals we have employed are either underqualified and slipped through the cracks in
the interview process. They may have looked good on paper, however, they are
underperforming or not acting up to the standards we have. The case in particular that
prompted me to undergo this investigation happened last month where I saw one of our
new employees take a long lunch with a senior financial officer, and he managed to get
away with it since he and the manager were friends. I began to suspect that he only
managed to get the job since they have been friends for years. Just a week before that we
had one of our stellar associates get written up for taking 10 minutes too long on his
lunch. Another issue I have seen is that we are hiring people based off their connections
within the company, but they do not accomplish as much due to the fact that they dont
feel like they have to work for anything. These are only some of the problems I have seen
arise with regard to nepotism.

Nepotism affects us all and can possibly harm us in many ways. For starters, due to the
fact that they are friends of the boss, they feel as if they can get away with anything. I
already explained this to the employees that are taking long lunches and slacking off.
These individuals feel untouchable since they have the leverage of knowing the boss on
a slightly more personal level outside of work. For the most, part the entire accounting
team is composed of friends and relatives of the boss, and I dont know if its a
coincidence or not but I am receiving their sales reports extremely late and extremely
unorganized, which leads to my next statement. The second problem of having nepotism
occur in the workplace is the fact that the positions being given out freely to friends or
relatives of the boss can be awarded to individuals that are more than qualified for the
positions being taken by them. As Neil Kokemuller points out, the basic concern about
nepotism in business is that it contradicts typical customs in employment to hire and
promote the most qualified candidate for a job. Rumor has it that we are rejecting people
with a fresh M.B.A. and years of experience and several internships under their belt only
to hire the boss nephew who considers the prestigious McJack International his first job.

The company as a whole is being affected. Company morale is at an all-time low due to
the fact that employees are realizing how unfair it is that people that are on the same level
as them have certain privileges they do not, and we have some hard-working employees
who have been around for a long time and have contributed a lot to our success only to be
overlooked come promotion time. As stated in an article on Forbes, trouble can arise if a
company advertises a vacant job and then fills it with an employees relative who clearly
is less qualified than, say, a female or minority applicant. This can lead to potential
lawsuits, which would definitely not be good for business. According to the New York
Times, JPMorgan Chase has come under scrutiny by US federal authorities over whether
the global mega bank hired the children of Chinese officials to help the bank win
lucrative business in the booming nation. This in turn drew terrible media attention to
the company and brought legal problems.

To prevent nepotism in the workplace, we should enact policies regarding the hiring
of friends or relatives. I would suggest instead of guaranteeing family or friends the
job, we can guarantee them an interview but they must meet qualifications like
everyone else

This policy would help immensely because the boss or senior executives can still employ
people he holds dear to himself, but at the same time the company will not suffer because
they have to go through the interview process and beat out the competition in the pool of
applicants. This is extremely fair because the simple act of getting an interview for our
company is an accomplishment; therefore, family and friends are already a step ahead.
The company will thrive by having the best employees in the industry, we will avoid
potential lawsuits, improve company morale, and maintain our position at being the best
company to do what we do.

I appreciate your time and consideration, if you have any more questions or would like to
hear any more of my ideas please do not hesitate to contact me. The best way to thrive in
a business is to communicate; hope to hear from you soon.

Respectfully,

John Britto
Lead Advisor
Tel: (818) 999-0000
E-Mail: johndoe@mcjack.com
 Works Cited

Klaus Kneale. Is Nepotism So Bad? Forbes, Jun. 2009

kkkhttps://www.forbes.com/2009/06/19/ceo-executive-hiring-
ceonewtork- kkkleadership-nepotism.html

Protess, Ben. JP Morgan Hiring In China New York Times, Nov. 2016

https://www.nytimes.com/2016/11/17/business/dealbook/jpmorgan-is-
said- kkkto- settle-bribery-case-over-hiring-in-china.html?_r=0

Kokemuller Neal. Business Ethics & Nepotism Chron

http://smallbusiness.chron.com/business-ethics-nepotism-
72225.html