Expert: Timmy Chou - 2/27/2008

Question
QUESTION: I searched for nepotism in hiring practices and a link came to a response you had offered once.  I'm hoping your business experience can be of help to me.

Recently I participated in a hiring process run by the executive committee of a Camp Ministry.  This committee consists of the Board President, Vice President, Secretary, Treasurer and the Executive Director.  When I interviewed for the position all of these people were present.  I learned later that the son of the Executive Director was hired.  I also received a letter from the Executive Director explaining that his son was "uniquely qualified" because of a "lifetime of observation".  He also noted his son's 10 years of paid and volunteer service (I have at least 12 years) at the camp.  The minimum requirements for the position were "a bachelor's degree, camping experience, resident housing (ie, you must live there), 2 years of work experience preferably in youth work or ministry."  I have a M. Div. (Masters of Divinity), I have at least 12 years camping experience, I have worked for the last 6 1/2 years as a youth pastor.  The Executive Director's son has worked as a school teacher, has his bachelors degree, and has done limited volunteer youth work.



It has also come to light that part of the son's 10 years paid and volunteer service at the camp is the result of unadvertised positions (Landscaping) that were created specifically for him during the summer time when he had no teaching responsibilities.



Is this a legitimate case of nepotism or was he properly hired?



Thank you for your time,

Mark Ginter

ANSWER: Thank you for your question.

The answer to your question is probably BOTH.  I would have advised this hiring committee that if they were going to choose to hire the ED's son, than they have a GREATER burden to prove his unique qualifications above and beyond the requirements stated.  Vague, non-qualified statements such as the "lifetime of observation" qualification certainly are specifically discriminatory (how, pray tell, would you or any other candidate be able to meet this so-called standard? . . . and if you cannot, why is this being considered?)

All this said, I would have to compare the process with the Bylaws or governing documents of the organization to see if they have the latitude to pretty much do what they want (which they probably do).  

You may have some leverage as any 501(c)(3) non-profit has a duty to avoid self dealing and nepotism.  The tax exempt status requires it, and there are very detailed reporting requirements every year when tax returns are filed to disclose violations.  I would think that the IRS non-profit corporation enforcement division would take issue with this obvious inside job.

Your state corporations regulatory body may also have some rules around this matter as well.  

Non-profits have a duty to follow US Dept of Labor regs as well, and you may wish to call them and explore your options.  You may be able to file a labor claim with them and the good news is that it is free.

It may be useful for you to consider that right and wrong are not always the most useful places to begin in dealing with these sorts of problems.  There is always a cost to exacting justice and the costs can be quite high.  You can stir the pot, but you are likely to piss off the organization.  Remember that your person-hood and your work are not even remotely related and that the most successful people at work are often the least successful with others since they have often become successful on the bodies of those they have slain.

These are some ideas -- feel free to follow up with any additional questions.



---------- FOLLOW-UP ----------

QUESTION: Thank you for responding so quickly.

Could you clarify the following for me.  I am aware that if an organization does not have a particular written policy - like a Conflict of Interest policy - it does not excuse them from participating in these activities.  

That said - the hiring process was performed by the Executive Committee of this organization.  This is made up of the Board President, Board Vice President, Treasurer, Secretary and Executive Director.  Apparently - they decided to do the process this way once they found out the son was applying for the position.  It has also become clear that the Executive Director never chose to recuse himself from the hiring process - but only from the interview portion of the meetings with his son.  I can vouch that he sat through my entire interview - and I checked with two others that can verify the same.  Is there anything improper about this process?

ANSWER: You are right that the specific lack of policy regarding nepotism or favoritism does not excuse an organization from this behavior, but because there isn't a "hiring police" the enforcement of the correct behavior is left to individuals to do -- on their own dime, I might add.  

The process you describe is completely improper, but no one cares.  

Unless you are willing to push the issue yourself, and take on the emotional and financial burden of the issue, you are unlikely to see any changes.  You can point out to others (IRS, Labor Dept., etc) the improprieties, but they may or may not choose to intervene.  

If you want you can make quite a fuss -- notifying all these regulatory and oversight agencies.  And also you can notify the press and see if you can generate some negative publicity.  If there is a religious governing body that you can appeal to (or one that does business with them) you can notice them up about these practices and recommend they reconsider their association or sponsorship.  

None of these choices is likely to make you popular.  

These are some additional ideas.  Check back if you wish.

Good luck!

---------- FOLLOW-UP ----------

QUESTION: Just to clarify:
I am in Pennsylvania.  I don't know if that influences anything.  Once I have addressed my concerns with the organization - and if they refuse to correct this process - who, outside of the organization, would I contact first, second, etc...

Thanks - again - for your time.

Answer
You will have to make a decision if you are going to mess with them for your own benefit or not.  In other words, are you trying to get the decision reversed so that they will hire you? if so, you must take into account that if you are successful you will work for people that will dislike you a great deal.  If you want to do this, you should first send them a registered letter detailing all your concerns and that you find the practices discriminatory and self-serving, and that you request an immediate meeting to discuss the matter.  They will refuse of course.  Next, you increase the pressure by sending copies of your letter to your state's labor commission and/or the US Dept of Labor, any religious governing body, the press, or whomever else you think will begin to shine the light on the practices.  If you can file discrimination claims with the USDL or the state, do so.  

You are not likely to be able to "negotiate" this matter.  I would guess that the Board is either being strong armed by the ED, or that the members are not professionals and do not know enough to know these practices are wrong.  In either case, they will react to a "terrorist" threat and circle the wagons.  You may win, but I doubt you would end up with a job you would survive for long in.   You may paint yourself as a rabble rouser and troublemaker, and damage other opportunities with the organizations this body serves.