When it comes to hiring personnel, businessmen take into consideration not only the skills and competency of the candidates, but also the kind of relationship they have or will have with their potential employees. However, when the people involved in a business are related to one another, the factor that plays a bigger role in hiring is the relationship between the employer and the employee. Of course, the intentions are good, but this doesn’t guarantee that the business will benefit from the fact that a family is running the business. In fact, this causes higher business risk and may even damage relationships among family members.
Common Problems Caused by Hiring Family Members
PAY: If you are going to hire a family member, you would surely hesitate to pay him or her minimal salary. You would have to consider being generous in your offer, which can be very harmful to your business. Before you make a huge offer to a relative, think about the amount of money he or she will likely make in another company. You should then negotiate this with them so you could both have a favorable salary arrangement.
PERFORMANCE: Hiring someone based on your relationship with them will prevent you from using competency as a requirement for the position. While it is always possible for your incompetent family member to learn his or her position, training them will only add to your expenses. Plus, there can be no guarantee that soon they will become competent enough to handle their positions well.
PERKS: Businesses are expected to give their employees various benefits, such as paid vacation, business trips, and so on. But for small startup businesses, this can be difficult. And when you have family members in your payroll, you may be forced to offer such benefits even if you can’t afford it yet. The problem becomes worse when your non-family employees notice how you always favor your relatives.
What can you do to address such issues?
If there is no way you can avoid hiring a family member, the least you could do is establish a professional relationship with them. Make it clear to them that they will be treated just like your other employees and that they should not expect to have special treatment from you. It is also important that you conduct regular performance evaluation of your staff, and if you think further training or education is needed by any of them, do not hesitate to encourage them to develop their skill set.
There may also come a time when you have to let your family member go. If you have tried everything to help them grow professionally but you still don’t see any improvement, there’s no reason you should sacrifice the growth of your business for your relationship. Try to make your family member realize also that changing jobs might be what they need to obtain their goals in life.
Guest BizBlogger – Cecile Peterkin is a certified career and retirement coach, and a registered member of the Career Professionals of Canada and the International Coach Federation. She is also the Founder and Senior Career Strategist at Cosmic Coaching Center, provider of career and life management services for middle managers and mid-career professionals across Canada, United States and Europe