Hiring a Friend or a Relative is Bad for Your Business! Here’s Why.

Leading the way of your own business is already difficult to begin with, what makes it more difficult is finding the right people to work for you. In the business industry, there are certain rules that are written and are not. There are issues that remains questionable through the years and one of them is that: Why hiring a friend or a relative is bad for your business?

Having a familiar face around could certainly make you feel comfortable but a casual atmosphere can make leadership difficult for the new business owner but that’s just the tip of the iceberg.

The Disadvantages of Hiring a Friend or Relative

Being the headhunter is difficult but when you seem to be pressured and getting short of resources, you may turn to family and friends to help you out. But turning friends or family into your employee is not much of a good idea, check out the points we have figured out below:

  • Friends and family may exploit your adoration for them, and break organization rules. What makes it worse is that they may expect extra benefits or special privileges too
  • Guidelines make be broken because they don't think you will fire them
  • Your family may be reliable, however too much familiarity in general may cause them to be more laid back since you are their boss which will cost you more
  • Money related discourses will always be awkward especially if mentioned during social gatherings that you would certainly have together
  • Businessmen FightingLoved ones may purposefully or unexpectedly undermine your administration with different representatives by not considering you as important
  • Other employees may expect friends or relatives are being demonstrated bias, particularly if promoted
  • Having friends or family hired in your company or business would give a sense of being unprofessional because you are all too familiar with each other
  • Terminating family and friends is unthinkable and almost impossible. Especially for the small business owner, its either he will let the business go under first than fire a friend or relative
  • Disagreements or family problems between relatives or friends may be brought to the workplace.   This would definitely affect the workplace and the productivity of your business.
  • Problems in the work place may be brought home and may also influence your relationship negatively.
  • Changes in the workplace that would benefit the company or your business may be difficult for you especially if it would negatively affect your friends or relatives if they are working for you.

Below are a Few Feasible Solutions:

  • Hire only the qualified employee (be it your friend or relative) for the position so that you won’t suffer the consequence of terminating an unqualified friend or relative that you hired because of pity or love for them.
  • You can hire friends or family members on trial basis before giving them a permanent spot to ensure their work dedication.
  • Make it clear to your friends and relatives that you hired them as an employee and you will give them equal treatment like the rest of your staff.
  • Have a written agreement or contract which fully explains the job description and details the summary of benefits and compensation. This will make your workplace more professional and organized.

In business management, especially when it is your own business, there are many advantages and disadvantages to hiring friends and relatives. Hiring friends and family may allow for familial disputes and interactions to negatively affect the way your business runs. Considering the following points given above may help you decide whether or not hiring friends and relatives is a good course of action for you and your business.

Still Insisting on Hiring Your BFF? Consider This:

When you have your own business, it’s not unlikely that you will have your friends or family approach you for a job and ask you to bring them aboard. But if you have other options, it’s better to resist the temptation to hire a friend or a relative to prevent further disadvantages in the future. If you really have ran out of options, then you need to consider the following to ensure success in your business before telling your friends or relatives that they are hired:

  • the work ethic needed
  • the experience and skills needed for the position
  • the compensation or pay scale and rule out the expectations that you would pay them more because they are family or friends
  • the fine line between work and relationship as friends or family so that your intimate relationship with them would not be affected and make things awkward for both of you in the future

The Wrap-up:

In many ways, selecting family or friends as employees is like managing your own family. There are generally positives and negatives, in addition to it’s the thoughtfulness, justness, with love and care but having the intimate bond may not be all good especially when it comes to work or running your own business. However, you may find that hiring friends and family makes your business stronger, and makes you a happier entrepreneur.

There are plenty of both pros, and cons to hiring a friend or relative, and like every business decision, there is risk behind whatever decision you make. You may choose to hire a relative or friend or may not but always take into consideration the advantages or benefits of your business before anything else and you are good to go!




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