Rhonda Abrams The Passionate Entrepreneur

Small employers complain about how difficult it is to find good employees. But there's one place that can be a terrific source of great workers -- the families and friends of your best employees. After all, current employees who have great work attitudes probably have brothers, sisters, and best pals with great work attitudes, too.

I'm a big fan of nepotism. While most employers dread the idea of hiring someone's close friend or relative, I've had (mostly) good experiences over the years. Recently, I hired Rosa, a close friend of one of my employees, and she's turned out to be terrific!

But hiring friends and relatives is tricky. If not handled well, it can sour the work environment. Personal disputes can affect business interaction. Other employees may feel that a boss's relative gets special treatment, and cliques can form.

So use good judgment when hiring relatives and friends, just as with any hiring decision. In fact, I tend to apply higher standards when dealing with family members, especially my own.

Proceed carefully by following these tips:

• Don't hire someone's relative just because they need a job. If someone has trouble holding down a job, you don't want them either.

• Don't have relatives work too closely together. It's one thing to have siblings work for the same company, but if they work together on the same project, you're likely to see old family patterns emerge. If something goes wrong, don't be surprised if you hear something like, "He started it," "No, she started it," and so on.

• Ask specific, detailed questions about the relative's qualifications before you agree to interview them. While you want to hire people with the right attitude rather than just skills, leave yourself an out: "I'm not sure Chris has the right computer skills we need."

• Watch out when hiring spouses! Spouses or domestic partners working together can present difficulties. There are logistical issues -- vacations or family emergencies may leave you doubly short-handed -- and behavioral issues -- a terrific worker may change dramatically with a spouse around.

Moreover, in a small, new, or very risky company, having both breadwinners work for the same company puts a lot of stress on a family and their budget.

• Be extraordinarily cautious about working with your own spouse. I know of a few businesses where a husband and wife successfully and productively work side-by-side all day. But I've had a number of clients where either the business or the relationship (or both) ended up on the rocks. Tread carefully.

• Be toughest on your own close relatives. I'm old-fashioned enough to think it's good for the boss's kid (or niece or nephew) to have to work their way up, and it's good for other employees to know that the boss's brother doesn't get a free ride.

Before you hire a relative, make it clear to them that they'll be held to the highest standard. And I have a firm rule: I never supervise one of my relatives directly.

• Never play favorites. Make sure all the rules apply to all employees. Everyone has to be qualified, and they have to do their jobs well. Otherwise, they're not hired or they get fired. Even your mother.