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If you think firing an employee is a difficult task, imagine how uncomfortable it would be firing a family member. Too often business owners hire family based on emotion and fail to think about what’s best for the company and its other employees. It’s not to say employing family members is a bad decision, but it is a decision that requires ample consideration.
About 80% of the world’s businesses are family owned, while family-run businesses account for nearly 35% of the largest companies in the U.S., according to research from the Kennesaw State University Coles College of Business. Although employing family can pose certain downfalls, it can also provide great benefits that could be worth exploring.
Let’s first address the risks that accommodate hiring family members. Understanding and evaluating potential pitfalls will allow you to better determine whether or not a relative will be a good fit.
Although the last issue can only be avoided by handling adversity with a mature mental attitude, the remainder of the problems on this list can be resolved by handling family employment in a professional and concrete manner.
In the event you decide to hire a family member, it is imperative that you place the relative in a position that fits their skill set. A thorough job description clarifies the requirements for the position and helps prevent any confusion that may arise regarding your expectations. Knowing exactly what a job requires allows both you and your family member to determine whether or not they would be a good fit. Compensation should always commensurate the position.
Another key factor to successfully hiring and working with family is the ability to think and act professionally, not emotionally. This is a two-way street and its importance must be expressed and understood prior to offering employment. The last thing you want is to have your customers and employees overhear you and your relative arguing, especially over non-work related matters.
Having explored the potential downfalls, let’s take a look at the many good reasons as to why you should hire family. In the event a relative is a good candidate for the position, you should take full advantage of these benefits.
The key to successfully hiring family is simple: ensure the relative you hire fits the job description you are hiring for. Pay them solely based upon their performance and treat their employment with fairness and transparency. Every business differs but it’s important to heavily weigh the pros and cons prior to offering employment to a relative.
Save the drama for your mama and get to work.