5 Things to Consider When Hiring Friends

and Family
It would seem like an ideal situation to work with close friends and family members. You
cant imagine people who would be more invested in your happiness and success. Not only
that, but you actually like each other.
These are the people you care about and easily socialize with. If you count on these people
through personal hardships, surely theyll deliver in a professional capacity, right?
Not always.
Before you go about hiring friends and family, its necessary to answer some tough questions
as to whether or not they will contribute to your business. This isnt to say you should
automatically fear hiring (or firing) a close family member or friend. Just take these factors
into consideration before you move forward with the hiring process:

1. Is he or she qualified for the job?

When I was about to break ground for a new office on my property, I was trying to decide
between Johnson Machinery (a Caterpillar construction group) and my brother-in-law (who
had done a little bit of landscaping before and was looking for work).
I was torn between the two, but then I got to thinking: I very likely would not hire a total
stranger that was woefully under-qualified for an open position. I would probably be puzzled
and a little amusedthat someone would ask for a job while lacking the requirements
asked for. Yet, it is remarkably common for this attitude to go out the window when
familiarity becomes an issue. Why would I put such a major project in the hands of
somebody that was so inexperienced?
You are not doing yourself or your business any favors by giving a job to a friend or family
member that simply cannot do it. You may even be hurting the friend in question. This goes
for both physical skills like building a new office as well as mental skills like handling the
accounting.

It can lead to that friend having to cope with a lot of pressure. They may also be the target of
a great deal of resentment, especially if co-workers know they were only hired due to their
connection to you.
If the relative or friend is qualified for the job, this shouldnt be a problem. Simply let them
know that you expect him or her to do their best.

2. Did you hire him or her for the right reasons?

One man found himself in quite a pickle after caving to his wifes request to hire her nephew.
The nephew caused a problematic situation to develop that put both this mans workplace and
marriage in jeopardy.
This could have been avoided if he hired the nephew for the right reasons. Hiring a family
member strictly as a favor is not a good reason to give someone a job.
In this situation, its not about getting the best person for the job. It may not even be about
helping the relative in question. Its about using a professional situation to solve a
personal problem. What usually happens is because the relative or family member came to
work for you for personal reasons rather than professional ones, it is impossible to
completely transition to a professional relationship.
Notice that the man in question is now dealing with the personal consequences of giving a
professional position to his nephew? This is why its important to emphasize professional
standards and expectations at the beginning of the hiring process.
If you hire someone based on their professional capabilities and experience, you can usually
steer clear of unnecessary personal drama.

3. Will they disrupt your place of business?

If you know from personal experience that the individual has a polarizing personality, its
best to pass on hiring him or her. You cannot afford to create an environment that could cost
you good workers. Stick to working with friends and family members who you know can
operate in a professional capacity without alienating or angering others.
Its also a good idea to have a conversation aboutacceptable workplace behavior. Let the
person know you will not tolerate them using their connection to you to bully or blackmail

other co-workers. That person should respect you enough to come to work on their best
behavior.

4. Is he or she trustworthy?
As close as you are to the person, you may feel that trustworthiness isnt an issue. Under ideal
circumstances, it actually might not be. If its someone you know intimately, a background
check might not even be necessary.
If this isnt the case, treat them as you would any other potential employee. Give them a
probationary period and keep an eye on how they behave. Some people are fortunate enough
to know and trust their friends and family and have these feelings validated.
But, if you know that there are issues that could arise, you may want to avoid hiring them.
For instance, was your family member fired because they were caught stealing money? While
youd like to think you would be exempt from embezzlement, its best to err on the side of
caution. They might have the mindset that being related to you gives them a longer leash.

5. Will you be able to handle firing them?

If its your job to hire them, then theres a good chance it will also be your job to fire
them should things go badly. Be proactive heretell them from the beginning that they are
just like any other employee. Like any other employee, they can earn raises, get bonuses, fall
into a probationary period, or even get fired. Be very clear that they need to live up to the
same standards as everyone else, and if they dont, theyll have the same consequences
as everyone else.
If, unfortunately, you find that you do have to fire them, be sure the appropriate paperwork
has been filled out and with detailed explanations as to why the person is being let go. If you
worry things could get personal, have a third party present. Perhaps use a video or audio
recorder for additional documentation.
However much the process may hurt, keep your emotions in check. Keep the entire
conversation about the job and do not allow yourself to be pulled or guilted into a personal
discussion.

A final note:
Its your own behavior that lends itself to whether or not working with friends and family
members goes well. The bottom line is that you cannot confuse a professional
relationship with a personal one. If you hire someone for personal reasons and do not hold
them to professional standards, youre being unfair and will likely create bad feelings.
Take these factors into consideration before you hire a loved one. If you are honest with
yourself and that person throughout the hiring process, you can avoid a number of
unnecessary problems and have a great professional relationship with your friend or family
member.
Have you chosen to hire a friend or member of your family? Do you have any advice for
other entrepreneurs who might be considering it? Share your experience in the
comments below.

The Good and Bad of Hiring Family

Members
Just when I thought I was out, they pull me back in! Michael
Corleone famously laments in The Godfather: Part III.
While the family he was working with had a bit more sinister
and, well, let us sayorganized quality than traditional families,
theres no doubt that hiring and working with relatives can cause
even people of a much less scenery-chewing bent than Al Pacino
to tear their hair!
Employing family (either yours or other staff members)
can undoubtedly pose certain pitfalls, but it also offers
great benefits that are worth exploring.
The key to maximizing the positives and minimizing the
negatives of nepotism is simply an issue of using the right
approach.

The downside of employing family:

First, lets address the pitfalls, since knowing about potential
problems is the first and best step towards avoiding them
altogether.
When hiring your own relatives, you run the risk of causing
resentment amongst your other staff, or of giving the
impression of favoritism
Sometimes family members can be expected to do or give
more than other employees simply because of their bloodties, causing them to feel exploited or put-upon
Working with relatives can create discord if family tensions
or problems fail to remain at home where they belong
Unfortunately this last issue requires a mature and determined
effort to overcome the natural imperfections of human nature, so
its success depends upon the individuals involved. The other
problems, however, have more concrete, easily-implemented
solutions.

How to handle employing family:

Creating well thought out job descriptions is a good idea for any
company, and not just one looking to employ family members.
In the case of family employment, a thorough job
description objectively clarifies what knowledge and skills
are required for a position. Provided that the family member
you place in that position actually meets those pre-defined
requirements (and receives compensation commensurate to their
role) an impression of favoritism will not be created.
If you wish to train and groom a relative for a particular
job that they are not yet qualified for, first give them a
trainee position with a title and wage that are reflective of
this.

Manage your family members and appraise their performances as

you would for any other staff members. In essence, treat the
employment of relatives with fairness and transparency and you
will effectively defang nepotism of much of its worst potential.

How to handle hiring staff members relatives:

As for hiring the relatives of other employees, this too has its
positives and negatives.
A family member or close friend of a great employee may end up
being a great employee too. However, as with your own family,
employing staff members who are related to one another can
possibly result in family issues and tensions inappropriately
rearing their heads in the workplace.
Be especially careful about employing people who are
spouses or domestic partners: This is important not only
because of the possible troublesome blurring between home and
work life, but also because this can put you in a bind during
vacations or family emergencies, and can make issues of pay,
advancement, or termination particularly thorny.
As always, having well-constructed job descriptions is
critical: Knowing exactly what a job requires allows you to
determine if a staff members friend or relative really is the best
fit for the position, and also gives you a good out if theyre not
right for it.
This way, rather than having to issue a flat-out no to considering
someones relative, you can simply cite the job descriptions
clear-cut requirements. Unfortunately, your brother doesnt
have the computer skills that this position calls for, is a more
gentle let-down than, I dont think your brother is right for this
position.

The benefits of hiring family members:

There are many good reasons to hire family members:
You are more intimately familiar with their weaknesses,
strengths and potential than you are with any other
employees
Theres no need to perform background checks on your
relatives, and you can trust them with critical and
confidential aspects of your business in ways you cannot
with many other people
Relatives have a vested interest in seeing you and your
business succeed
In times of need, you can depend on family members to go
the extra mile for you, working long or odd hours, taking
less pay, or just functioning as confidantes and cheerleaders

The financial advantages of hiring family:

There are tax deductions available for your business when
you pay for health insurance for a spouse or child employed
by you
Because a survivors benefits under Social Security are only
half of the deceased spouses benefits, hiring a spouse
particularly a non-working one helps to build up each of
your Social Security earnings
Most tax advantages on a federal and state level are
predominantly for sole proprietors. For sole proprietors:
You can exempt wages for spouses and any children under
18
For children under 18, Social Security and Medicare
deductions do not have to be withheld from their pay, and
your business does not have to pay its portion of those
taxes either

 You dont have to pay federal unemployment taxes on a

child until they turn 21
Even if your child makes a high enough level of income to
incur a tax liability, the tax rate for your child would still be
lower than your own as an owner of a successful business
Dont forget that you still need to adhere to Labor & Industry
regulations regarding hiring children! These requirements are
fairly strict in Washington state. You can find more information
on their website.

The wrap-up:
In a way, hiring family is a lot like living with familythere are
positives and negatives, and its the thoughtfulness, fairness, and
care with which you approach situations that will determine
whether its the good or the bad that predominates.
Provided that your business doesnt involve hiding horses heads
in peoples beds, working with your family can be an extremely
positive, productive and profitable

THE PROS & CONS OF HIRING FRIENDS &

RELATIVES
Apr 29 2014, by PEOPLE HRO in News
When considering hiring a friend or family member, there is a lot to take into consideration. There are
pros and cons to every business decision, and this one is no exception. Here is a list of both pros &
cons for hiring a friend of family member.
PROS:
You can never have too much loyalty, and any family or friend would be trustworthy
If you hire someone youve known for a while, you will know what to expect from them
The strong and weak points will already been known by you
Friends and family can be encouraging to work with, lifting you when you need it most
These people will reach out and do favors for you without expecting anything in return
Friends and family usually want you to succeed, so they will work hard for you

CONS:
Friends & family may take advantage of your love for them, and break company rules
Rules make be broken simply because friends do not think you will fire them
Your family may be trustworthy, but overall they may be lazy also- which will cost you
Other employees may assume friends are being shown favoritism, especially if promoted
Family may expect favoritism simply because they are your family
Everyone isnt a professional, so friends may give your company a bad reputation
There are plenty of both pros, and cons to hiring a friend or relative, and like every business decision,
there is risk behind whatever decision you make. If you do decide to hire a relative or friend be sure to
follow a few major rules. These rules include: always act professional in the work place, establish
specific hours for your friend, create a specific job description that needs to be followed, and keep
whatever you pay these people between the two of you.

THE PROS & CONS OF HIRING FRIENDS &

RELATIVES
Apr 29 2014, by PEOPLE HRO in News
When considering hiring a friend or family member, there is a lot to take into consideration. There are
pros and cons to every business decision, and this one is no exception. Here is a list of both pros &
cons for hiring a friend of family member.
PROS:
You can never have too much loyalty, and any family or friend would be trustworthy
If you hire someone youve known for a while, you will know what to expect from them
The strong and weak points will already been known by you
Friends and family can be encouraging to work with, lifting you when you need it most
These people will reach out and do favors for you without expecting anything in return
Friends and family usually want you to succeed, so they will work hard for you
CONS:
Friends & family may take advantage of your love for them, and break company rules
Rules make be broken simply because friends do not think you will fire them
Your family may be trustworthy, but overall they may be lazy also- which will cost you
Other employees may assume friends are being shown favoritism, especially if promoted
Family may expect favoritism simply because they are your family
Everyone isnt a professional, so friends may give your company a bad reputation

There are plenty of both pros, and cons to hiring a friend or relative, and like every business decision,
there is risk behind whatever decision you make. If you do decide to hire a relative or friend be sure to
follow a few major rules. These rules include: always act professional in the work place, establish
specific hours for your friend, create a specific job description that needs to be followed, and keep
whatever you pay these people between the two of you.