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Rhonda Abrams The Passionate Entrepreneur

Rhonda Abrams, The Passionate Entrepreneur

Hiring Family Members

by Rhonda Abrams

Good (130 Ratings)
2.976924/5
Posted on Tuesday, May 8, 2007, 12:00AM

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.

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36 Comments

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  • Barto - Tuesday, October 7, 2008, 1:19PM ET  Report Abuse

    • Overall: 5/5

    Expect the measure of your leadership skills to be sounded if you hire family. It is not for the faint hearted. You will have to justify your actions to both family and non family employees with the same response.

  • Tony - Monday, August 25, 2008, 12:44PM ET  Report Abuse

    • Overall: 1/5

    I thought the Romans learned this was a bad idea 2000 years ago. We're just re-learning this lesson now with GW. This is the primary reason for the estate tax as nepotism often results with inbreeding.

  • mj - Wednesday, August 13, 2008, 4:02PM ET  Report Abuse

    • Overall: 4/5

    Heads up for business acumen! A great reminder.

  • Bill - Tuesday, August 12, 2008, 10:25PM ET  Report Abuse

    • Overall: 1/5

    You should almost never hire family. As the saying goes it takes on generation to build a good business and two more to ruin it. If you are considering hiring a family member send them to work for a large corporation in a related business first to make mistakes on their dime and learn the skills they need to be of value in a family business. Problem is that once a family member learns the biz well enough and proves they are a good hire, the average family business can't afford them. It's just too easy to find good labor elsewhere without all of the work place issues caused by having family members working for you.

  • k9 - Friday, June 6, 2008, 6:22PM ET  Report Abuse

    • Overall: 2/5

    Rule#1 Don't work for relatives. Rule#2 Hire relatives ,treat them poorly so you don't appear to be playing favorites. Rule#3 (No Joke) Never hire the friend of a friend.

  • Yahoo! Finance User - Sunday, June 1, 2008, 4:28PM ET  Report Abuse

    • Overall: 2/5

    This is ridiculous: over a year without a posting? Pull her off of the Columnist list.

  • Fred - Thursday, March 27, 2008, 10:31AM ET  Report Abuse

    • Overall: 4/5

    Good guidelines. Rule #1. Never NEVER hire friends or relatives! Just don't do it!

  • Yahoo! Finance User - Saturday, March 22, 2008, 11:35AM ET  Report Abuse

    • Overall: 1/5

    won't be reading this thread anymore:(

  • Alohafalls - Wednesday, January 30, 2008, 2:56PM ET  Report Abuse

    • Overall: 1/5

    never hire anyone you can't fire!

  • Yahoo! Finance User - Tuesday, January 29, 2008, 8:50AM ET  Report Abuse

    • Overall: 1/5

    Get her off of here, a year without an update, this is a dead chain! She is worthless

  • Jennifer J - Wednesday, January 23, 2008, 10:21PM ET  Report Abuse

    • Overall: 4/5

    If this article is followed to the tee then, yeah, there shouldn't be any problems with hiring a close relative. My current boss has hired her daughter as one of my coulleges and had I known the full extent and situation before accepting the job, I would have declined. Her daughter gets special treatment and I really believe in my heart, that her daughter feels like she's my boss also, which is beginning to become a major problem for me. My boss seems to be oblivious to any of this. Anyone have any ideas as to how to approach this situation?

  • Yahoo! Finance User - Friday, November 23, 2007, 1:01PM ET  Report Abuse

    • Overall: 1/5

    The first rule in hiring friends and family is :Don't hire anyone you cannot fire

  • Nicki - Wednesday, November 7, 2007, 12:27PM ET  Report Abuse

    • Overall: 3/5

    Would suggest that you hire family only if you do not supervise them yourselve, have them work on project independently, like a sub-contractor. I have family working for me, but only on projects that need no supervision. Make sure that they understand what is required, that trust is an issue, and if they are over their heads, they need to let you know immediately. If you give 110% for the family business, you expect the same from them.

  • ObiohaC - Thursday, November 1, 2007, 10:19AM ET  Report Abuse

    • Overall: 4/5

    Helpful in hiring relatives.

  • Yahoo! Finance User - Monday, September 24, 2007, 2:52PM ET  Report Abuse

    • Overall: 2/5

    I have been in business for years and one of my top 10 rules is "Don't hire friends and family". Even with the best and most qualified employees problems will ALWAYS arise. If that employee is a friend or family member it will take a small easily dealt with problem and turn it into a big one. Most managers don't have the mental fortitude to be impartial with friends and family and even if they do it puts unneeded stress on their management ability. Being a manager is stressful enough without worrying that every decision that they make could cause problems in their personal life. If you are a manager do yourself a favor and stay away from nepotism.

  • bluemoon - Tuesday, September 4, 2007, 11:17PM ET  Report Abuse

    • Overall: 1/5

    your heard the old saying never hire relatives ,brother or sisters,nothing can be further from the truth, it is not good business pratice to hire your close one , except your own family members like your husband, sons or daugthers ,as for other relatives it is not a good idea because a family conflict will happen, because personality difference in thinking, relatives will take it personally, if you have to tell them to do something or not to do something ,they may not like the way you order them to do something! the best advice i can give to you is never hire out side your own family members ,because sooner or later their is going to be a family conflict,in other word a family feud!

  • Amber R - Tuesday, July 31, 2007, 12:21AM ET  Report Abuse

    • Overall: 4/5

    I have to agree with the article. Nepotism can be a good/bad thing. It has served me well being employed by my father; I'm holding down my first job, I'm learning skills that are needed in every field, and I don't have to fear loosing my job because I can't come in due an ongoing pain disorder that keeps me out for days or even weeks at a time. Parents can teach their kids very important work skills, especially if the child is interested in going into the same line of work; they learn how the customer expects to be treated when they go into that place of business, how to deal with unpleasant situations(or how not to!). I think it's about time some address BOTH the pro and the cons of nepotism.

  • Rob - Monday, July 30, 2007, 5:32PM ET  Report Abuse

    • Overall: 3/5

    NEVER hire someone you can't fire! I once heard someone say "People only work hard enough not to get fired." Add a family member that thinks they can't get fired and see how they perform.

  • Shawn - Monday, July 30, 2007, 4:40PM ET  Report Abuse

    • Overall: 1/5

    The simple fact that an article had to be written is proof enough that hiring friends and family is a serious problem. When you have to terminate someones family member you will certainly have to deal with the resentment or resignation of the remaining family member. Being overly tough on certain employees is not going bode well with those on the receiving end and most likely won't do much to change the preconceived ideas of special treatment. What do you say to the employee who says "My Uncle Leo" needs a job after you just hired Joe Schmo's cousin?? When you say "No" you will be the bad guys. You are asking for nothing but trouble if you are going to hire family and friends. Frankly, I am quite surprised at how poorly thought out this article was.

  • Yahoo! Finance User - Monday, July 30, 2007, 2:12PM ET  Report Abuse

    • Overall: 4/5

    I too had left a very good job, to manage a Ice Cream/Pizza shop owned by my brother in law. About 2 weeks into my job he told my sister there marriage was over. Things got harder for him to deal with me..I on the other hand kept strictly professional. About 2 weeks ago he came in to the shop and out of the blue, let me know that my postion was being elimnated. I counted on my job and my paycheck....when I asked if I had done something wrong or was I not working up to his standards, he replied NO everything is great. I just cant afford to pay you anymore. Moral be carefull when working for family.

  • Sy - Monday, July 30, 2007, 1:42PM ET  Report Abuse

    • Overall: 5/5

    You cannot pay your bills with simpathy. It is OK to have a heart but leave part of it at home if you want to stay in business. Tell your relatives you gave them a job to work and if they want to stay here you know what to do.

  • Wendy - Monday, July 30, 2007, 1:25PM ET  Report Abuse

    • Overall: 4/5

    Good advice! I have worked for a family business for years and they have had so many problems that could have been avoided had they taken your advice!

  • Yahoo! Finance User - Monday, July 30, 2007, 1:13PM ET  Report Abuse

    • Overall: 3/5

    There are good things as well as bad things. In the company I work for it is all family (in the offices) and they are not held to any kind of rules, hours, policies or procedures. They treat the company as their personal ATM machine while the vendors are left unpaid. I guess I should be thankful that I do have a job, while others don't, but it makes it hard to come to work knowing someone is getting paid for doing absolutely nothing.

  • Steve - Wednesday, June 20, 2007, 2:09PM ET  Report Abuse

    • Overall: 3/5

    I agree. Nepotism is not the negative force many assume it to be. I've been hired by famil, friends, and people I don't know at all. When I am hired because fo family ties, I tend to work harder so as not to embarass anyone and to prove I deserved the position. When I am hired at a place where I don't know anyone, I don't have those motivations. My company has several examples of nepotism and 90% of them are the best and brightest we have. I think the most important points in this article are 1.) to be sure a family member or friend is qualified and, 2.) to out them under extra pressure due to their conspicuousness.

  • Stjepan - Sunday, June 17, 2007, 4:18AM ET  Report Abuse

    • Overall: 5/5

    Be extraordinarily cautious about working with your own spouse . One of the best advices. The fact that large number of people simply don't want to understand is that business can destroyed a marriage. And marriage is more important than business. Me think.

Showing comments 6-35 of 36<< PreviousNext >>
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