Pros and Cons of Hiring Family for Your Business
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Pros and Cons of Hiring Family for Your Business

What are some of the advantages of a business owner hiring a family member? What are some of the disadvantages of a business owner hiring a member of their family? Should a business owner hire a family member? Should an employer hire their relative? What are some of the risks in hiring a relative? Reasons why you should not hire a member of your own family

Many new business owners, and even those who are already in business, consider hiring family. While it might be a great feeling to put money in the pocket of your family member, it can also create a lot of problems. To start we shall cover some of the advantages of hiring family, then we shall offer a warning by pointing out the disadvantages of hiring family when you own your own business.

Advantages of Hiring Family

You are paying yourself in some ways (as when hiring a spouse, or teenage children).

You know if the person really is sick or just trying to get a day off.

You should know that person's skills and abilities.

The person should be dedicated and loyal to the business because it is owned by family.

May be easier to find them if you need a person to fill in for emergencies.

Disadvantages, or Risks, of Hiring Family

People tend to see their family members through rose-colored glasses and may not make an honest assessment out of them as an employee.

New business owners tend to over pay their family members in relationship to their actual value.

Family members are often given roles in the business that exceed their ability and training, for example somebody might make their relative a manager when that person has no management skills or training.

Family members as employees sometimes take advantage of their relationship to the owner as they do not feel vulnerable towards losing their job. They may show up late, leave early, take long lunches, and avoid certain duties.

Family members may use their work time to chat with you, rather than working.

Not all family members are as honest as you might expect, they are often given more access to finances, and thefts do occur.

There are often issues with the other employees as they will note favoritism, even if you do not think it is occurring.

Family members, even if they are not in a management role, often behave as though they are, making the other employees uncomfortable, or causing work place issues.

Sometimes family members do not respect you as their boss.

If there are problems involving a family member as an employee many employers struggle with how to handle it and have a hard time firing such a person.

The dynamics of the family relationship may change as the result of also hiring your family member as an employee.

It may become more difficult to separate home life from work.

When hiring a spouse that person might see themselves as a business partner rather than an employee.

People may end up seeing each other more than they would like.


If you are a business owner you need to think long and hard before hiring family. Consider how it will affect your business, employees, as well as family dynamic. If that person is not sufficiently better than other prospective employees it might not be a good idea to even consider hiring family members.

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Comments (4)

Same thing could be said for hiring close friends.

I think it really just begs for heartache and upset if you hire family. Of course there are always exceptions to the rule. but not often in this case. Just a lot of hassle and potential for family disruption. Great article.

A very interesting post, I work for a small business, and there are 3 relatives that work there, It is up in the air with them all the time, the part that really gets me is how they feel like they are better than me because of being related to the owner...

Brenda, this is really a greta piece of work.