This study examines how applicants who are relatives of the company’s executives are perceived when they are being considered for a leadership position. In a 2 (Family ties: with vs. without) × 2 (Applicant qualifications: well-qualified vs. underqualified) experimental design, 165 Swiss employees read the applicant’s job application and evaluated the hiring decision, the perceived competence, and the perceived career progress of the target employee. This research showed that even a well-qualified potential employee received a more negative evaluation if the candidate had family ties to the company. Despite their negative evaluation of potential nepotistic hires, the participants nevertheless believed that family ties would boost the career progress of an underqualified applicant. Limitations and implications are discussed.
