Are you thinking of hiring friends or family members? If so, use this guide to navigate the myriad dynamics you may face and help you implement good working practices for your team.

As a business owner, you may have considered hiring those closest to you at one point or another. Perhaps your friend has a daughter who is a new college graduate looking for a sales assistant position, or maybe you think your spouse would be a perfect fit in your marketing department. Before you make moves to bring them onto your team, be sure to fully understand the pluses and minuses of doing so. This rundown can help you determine whether employing friends or family is a good move for you and how to navigate its potential challenges.

Pluses

Hiring and collaborating with a loved one can be beneficial for your company for a wide number of reasons. For one, they may be a more trusted, loyal, and hardworking employee from the jump simply due to their connection to you. Those with a more distant link, such as that daughter of a friend, will likely be incentivized to prove themselves worthy of the favor, not wanting to let you or your friend down. Meanwhile, direct family members and intimate friends will generally be invested in your success and may demonstrate a deeper care for and commitment to the job, resulting in immediate productivity. Additionally, unlike with other hires, you’re probably well acquainted with these individuals’ strengths and weaknesses, which can help at all phases of the hiring, onboarding, and training processes. You can more quickly identify where their skills and personality may fit, streamline any induction steps, and determine what development they may need to be best positioned for success.

And, of course, there’s the ability to see and interact with people you enjoy daily, which can brighten your workday and boost your own productivity. As a bonus, your camaraderie may even foster a more positive environment, providing for better employee morale and a stronger overall culture.

Minuses

All that said, there are potential drawbacks to working with loved ones Unlike with other hires, you’re probably well acquainted with these individuals’ strengths and weaknesses, which can help at all phases of the hiring, onboarding, and training processes. as well. First and foremost is the risk that either you or they may exploit your relationship, intentionally or not. For instance, you may subconsciously hold them to a higher standard than other employees, such as by wanting them to work longer hours. On the flip side, they may expect special favors from you, from leniency with project deadlines to compensation perks they haven’t yet earned.

And even when you take measures to ensure that you treat your friend or family member without favoritism, a perception of it may still develop among your other employees, eroding trust and morale and making them skeptical of their own opportunities for advancement. Furthermore, filling a role based on personal connections may sometimes mean passing up a more skilled external job candidate. While this may prove inconsequential for lower-level positions, it can cause potential problems for more critical ones if the hire currently lacks the experience or abilities to dive in right away and manage the duties. This can also prevent you from building a stronger, more inclusive and diverse team, which may even make it difficult to attract and retain top talent down the line.

On a more personal level, working with loved ones can blur the lines between your professional and personal lives, such as when family disagreements spill over into the workplace or vice versa. This could lead to tensions that strain your well-being and hamper your effectiveness as a leader, whether due to your inability to get a break from work at home or your employees seeing you undermined by apparent insubordination. Either way, it can be difficult to right the ship once such issues begin to develop.

Best practices

Clearly, successfully employing friends or family requires careful consideration and clear communication. Before hiring one, have an open and honest conversation with them about the potential impact on your relationship. Discuss how you’ll handle challenges that may arise, such as disagreements or differing work styles. Creating a clear plan for managing these situations can help protect your personal bond while also maintaining a successful professional partnership. On the business side of things, have your HR department, ideally staffed by nonrelated third parties, manage the entire hiring process to ensure fairness and objectivity. This approach can guarantee that the same rigorous criteria and evaluations are applied across the board for all your hires, minimizing any existence or appearance of bias or nepotism. You should also place your loved one under a supervisor other than yourself to maintain professional boundaries and prevent conflicts of interest. Finally, make sure to document these specific hiring and employment procedures in your employee handbook, if they aren’t already included, to reinforce your commitment to them across your team.

Employing friends or family has its share of benefits and drawbacks, so it’s best not to take this decision lightly. Instead, think carefully about the potential impact on everyone involved to help ensure a smooth onboarding process and beyond.

TAKE ACTION:
Review your hiring policies to make sure there are guidelines in place for hiring and working with friends and family.