What is a potential consequence of practicing nepotism in the workplace?

Practicing nepotism in the workplace can lead to decreased diversity. When hiring or promoting individuals based on personal relationships rather than qualifications or merit, it can create an environment where certain groups are favored while others are marginalized. This diminishes the variety of perspectives, backgrounds, and experiences within the team, which is essential for innovation and problem-solving. A diverse workforce typically offers a broader range of ideas and approaches, which can lead to enhanced creativity and effectiveness. Therefore, prioritizing personal connections over diversity can hinder the overall growth and adaptability of an organization.