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Small business owners often are in a position to consider hiring family members. Whether a relative asks for or expects a job, the tight labor market makes talent acquisition more challenging, or you just want to provide an opportunity for a child, it can be tempting.
Following through on the hire might be a disaster that harms both your business and your family relationships – or it could turn out to be a great business decision. To make sure it’s the latter, weigh the following pros, cons and tips so you can make decisions that are best for everyone.
With a family member, you probably have a better idea of what you’re getting. Unlike job candidates you’ve just met, chances are you’re familiar with your relative’s strengths and weaknesses. You already have a sense of their values, an established rapport and a level of trust. That likely means fewer on-the-job surprises such as discovering he or she is not a good fit or doesn’t have a strong work ethic.
Family members are more likely than newcomers to champion your business. Their drive for the company to succeed will be personal, as well as professional. Consequently, they may be more motivated, engaged and productive as a result – especially if it’s a child looking to move up and someday have an ownership role.
It’s likely a family member who comes on board already will have more familiarity with the business than a non-relative would. This preexisting knowledge can reduce the learning curve and help them make a greater impact faster.
Hiring a relative – especially someone who doesn’t seem qualified for the job – may send the wrong message to existing employees. Your employees may resist it simply because they perceive the move as nepotism or because they believe it limits their own upward mobility in the company.
There’s also a risk of inadvertently showing favoritism by spending more time with your family member at your workplace than with other employees or prematurely granting him or her higher-level roles and responsibilities. Those actions could decrease overall employee morale, productivity and your ability to retain quality workers.
An advantage of hiring a relative – familiarity – is also a potential disadvantage. Family dynamics aren’t always pleasant.
Old hurts, grudges and differences of opinion can make it uncomfortable to effectively manage a family member, particularly if you need to discipline at some point. Small business owners in this position may avoid addressing these situations when they should for fear of damaging their personal relationships.
The surprises in this situation could go both ways: Owners might think they know what it will be like to work with a relative, when in reality – especially in stressful professional situations – the related employee may act differently than he or she does outside the office. And, if the employee is a child or another close relative, small business owners could assume the worker with family ties inherently understands the business and the job responsibilities without adequate direction.
Family member employees, on the other hand, may believe they will be treated differently – with more voice, leniency or access to leaders than other employees have – or that the rules don’t apply to them.
Clearly, hiring a relative is not a decision to be taken lightly. Family Business Consultant Kyle Danner offers these tips for small business owners considering making a cousin, child or another relative a colleague:
Make sure any family member you’re considering hiring has the right skill set and relevant background to qualify for the position.
“If you hire your cousin because you owe him a favor, then you’re asking for trouble,” Danner says. “A relative who’s a poor match for an open position can end up costing you time and money – not to mention creating exceedingly uncomfortable moments sitting around the table come Thanksgiving.”
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Before hiring a family member:
Make sure job descriptions clearly define the scope of responsibilities as well as the qualifications required of candidates. Have a conversation, as well, so the newly hired candidate understands your performance and attitudinal expectations.
Onboard the family member as thoroughly as you would any other employee. If possible, make the relative accountable to a non-related manager, and trust the manager to handle mentoring, training and, as necessary, discipline.
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This includes paying them consistently as others who are at the same level in the company. Hire relatives at market rate, not above, and handle raises and promotions according to company policy.
Like all professional decisions, it’s smart to weigh the pros and cons before choosing to hire a family member. Enacting, communicating and consistently following fair employment practices will help ensure that working with relatives works for your business.
When it comes to hiring family members, it's important to consider the potential advantages and drawbacks. At Axcet HR Solutions, we understand the complexities involved. As the top PEO for small businesses and a trusted HR outsourcing company, we can provide expert guidance to help you make informed decisions. Contact us today to discuss your specific situation, explore best practices, and ensure compliance with employment regulations. With Axcet HR Solutions as your partner, you can navigate the nuances of family hires while maintaining a productive and harmonious work environment. Reach out now and let us assist you in making the right choices for your business.
https://blog.axcethr.com/hiring-family-members-the-pros-cons-best-practices
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