If you run a small business, you’ve likely dealt with this situation before; when is it okay to hire a friend or family member to work for your business?
As you can imagine, most people recommend that you stay away from hiring or doing business with family members. The initial thought for most is that it could potentially end up terrible and they typically want to avoid the situation all together.
Here are a few of my thoughts on the subject based on past experience. Be sure to add any insights you may have as well.
Hire Family: Understand the situation
I understand the thinking behind the “avoid doing business with family at all cost” mindset. People are thinking that it’s better to be safe than sorry. However, what if it’s actually a good opportunity for your business? In other words, what if your business would benefit from having this individual as an employee? Could it possibly be a win-win for both parties?
In reality, each situation is unique. I personally prefer to approach each situation separately and take time to consider the potential risks and rewards.
A few questions to help understand the situation:
- why does this family member want a job?
- do you have a good relationship with this individual?
- what are the needs of your business and the abilities of your family member?
Hire Family: Understand the risks
The reason people shy away from hiring family members is because it could potentially be a disaster. In the worst case scenario, you could ultimately end up damaging your business as well as your personal life.
Even if your family member looks to be a perfect match for your business, really take the time to identify all of the potential risks associated with the decision.
A few possible scenarios:
- The hire causes resentment among other employees.
- You have to fire your family member, which causes problems in personal life.
Hire Family: Understand the rewards
If you consider yourself to come from a good family, it’s likely that you may not want to risk ruining any of the relationships. It’s important to note, though, that most people miss the other side of the equation; more risk = more reward.
There are plenty of reasons you should hire great people. Here are a few additional possible benefits:
- You provide a family member with a job.
- Your business is better off because this person is actually a great employee.
Are the rewards worth the risks?
At the end of the day, you have to weigh out the risks and rewards. This is ultimately up to you and your discretion. In my case, I made the decision to hire a family member and this particular individual turned out to be one of my best employees so far. However, as you can imagine, situations like that could just as easily go south.
When considering whether or not to hire a friend or family member, be sure to take the time to think things through. You’ll be happy you did.
Would you hire a friend or family member to work for your business?