How to Navigate Inheriting an Overpaid Nepo Baby and Dealing with Nepotism in the Workplace

You’ve just stepped into a new role, still getting the hang of things—like figuring out the coffee machine (because the former CEO, who’d been in the position for two decades, never saw the need for it).

But before you can get comfortable, you’re confronted with a far bigger issue than a few crumbs left in the corner of the break room.

Welcome to the world of nepotism and favoritism.

Let's be honest—taking over a position previously held by a CEO for 20 years comes with its own set of challenges, some quirky, others more complex.

Among them is navigating the tricky terrain of workplace dynamics, especially when nepotism and favoritism come into play.

These practices can create a toxic environment where personal connections outweigh merit, leaving many employees feeling undervalued or even sidelined.

So, how do you deal with nepotism and favoritism in the workplace without causing waves, but also ensuring fairness and transparency for all?

Let’s break this down:

You’ve got Aleck, who was hired by the ex-CEO without a job description (let’s be honest, that’s a red flag in itself).

Aleck didn’t have any clear workplace expectations, and even though you’ve worked hard to establish documentation, expectations, and a personnel handbook, Aleck’s performance still isn’t up to par.

He’s improving, sure, but not exactly tearing up the charts.

The real kicker, though?

His paycheck.

It’s more than most of the staff around him, and we’re not talking about a slight discrepancy—Aleck’s salary is 10-15% higher than it should be for someone in his position.

Meanwhile, your other employees, who are far more qualified, are getting paid less than market value by as much as 20%.

This is a clear example of nepotism in the workplace, where favoritism leads to unfair advantages for certain individuals.

So, what do you do with a situation like this?

Reporting nepotism is key in addressing this issue. It’s important to follow the correct procedures, whether it’s speaking to HR or using internal reporting channels.

Toxic workplace nepotism can breed resentment and lower morale, especially when the team sees this kind of favoritism playing out in pay and opportunities.

The first step is to gather all the facts—such as performance reviews, salary data, and documentation on Aleck’s role—and approach the issue objectively.

Let’s explore how to handle this situation with professionalism, transparency, and a dash of humanity.