Nepotism is a serious problem in today's society. One of its striking examples is hiring relatives. This happens when a person does not have enough confidence to refuse the relatives, because he or she is afraid to offend them. The main problem in this situation is the lack of professional skills of those relatives.
They will not have the necessary knowledge and will not be able to accomplish the work properly. Thus, the lack of competition in choosing employees influences the fact, that company gains unskilled worker. Such employees will agree in everything with the boss, they will not think critically or evaluate objectively the decisions being taken. Despite the fact that these workers only cause problems to the company, they will continue to work. Their boss will just not be able to fire them, as this will cause disputes in the family. These actions will lead to the negative results of the company. The company will simply stop to evolve.
The second problem is a tense situation among the company's staff. Employees will see that one of them has more loyalty from the boss than the others because of their relationship. It can even cause open expression of hostility to such employee. It will also negatively affect the working process.
Besides, other employees will lose their motivation to work and develop in future. They will see that preferences are given to relatives of the authorities. Employees will see that their own contributions to the company are not appreciated as they should be, and they will not get motivated to work better, effectively.