family business

Pros and Cons of hiring family for business

Finding the right talent to join your startup may be a difficult job.

So, why not begin hiring friends or family whom you know are good at what they do? Well, as lots of ups as it can have there are some downs to consider. Including people who are close to you and whose talents you trust may look like an ideal scenario if you are starting a company. But the practicalities of engaging in a professional working relationship with close friends and family members can end up making your life much tougher than it otherwise can have been as a business owner. There is nothing to say that hiring friends and family members is a misstep but it is important to think carefully before taking on somebody you love as a business partner and as an employee.
With that in mind, here are the pros or cons of hiring friends or family.

5 Pros of hiring family for business


You have the inside scoop.
You likely know whether they present themselves well to others, did well in school, are trustworthy, etc. If it is your spouse, perhaps you know that they complement your qualities, as well as help, fill certain skills that you lack. You have much more info about your family member than you can ever get from a stranger in a 1-hour job interview.

They are incentivized to do a good job.
As long as you have a great relationship with this person, they’ll probably feel some loyalty and pressure to do their good on the job. They’ll want not to need to slack off and cause a conflict with you. Looking bad to a colleague is one thing, but disappointing a sibling and parent is much worse.

Everyone has skin in the game.
If you hire a close family member, their financial success is frequently closely tied to yours. When the business does well, both you as well as the family member will advantage. This may be a powerful motivator for both people. In most cases, hiring your kid, spouse, and parent can even save your money on the taxes.

Your relationship grows.
When you start working with this person, your relationship is bound to change. You’ll be working towards a common goal together and you’ll probably develop a new, exciting dimension to your relationship.

Communication Advantages
For small businesses or startups in specific, it is important that colleagues and co-workers are capable of maintaining better communications between one another as well as with their bosses as consistently as possible. Therefore, bringing in somebody whom you know well and who you’re certain you can communicate simply with maybe a considerable benefit.

5 Cons of hiring family for business


They can expect special privileges.
When the boss is a relative, sometimes it may be tempting for a worker to assume they’ll receive special privileges. This can mean not showing up on time and taking more-long lunch breaks. You do not need to hire anybody who will disgruntle your other employees and force you to play favorites.

Separating the work and home life will be difficult
It is true if you hire your spouse and partner. Communicating on a professional level is different than communicating on a personal level. Spending too much time with one person may cause serious friction. If you are not careful, trouble at work may bleed into your personal life.

Your relationship may sour
You give your relative a chance or hire them. But what occurs to your relationship if things do not work out? If you or your family member cannot make things work, you can have to fire them and they can end up quitting. This can permanently damage your relationship. Think of all the holidays when you’ll yet have to see or spend time with this person.

It will send the wrong signal to other workers
Even you do not mean it but you can show favoritism towards a family person if you spend extra time with them as compared with other workers and granting a promotion that other people will consider undeserving. These actions may negatively affect employee morale and productivity, as well as become a key factor in your inability to retain valued employees.

A family member can be a poor match for the job.
If you hire your cousin because you owe him a favor, then you are asking for trouble. A relative who is not a good match for a position will end up costing you time and also money not to mention extremely uncomfortable moments sitting around the table.

Ready to keep your business on track and focused?

YMA Financial LLC. provides the business consultation services you need to stay afloat and ahead of the competition. Give us a call today!


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