Friends and Family in Business: 5 Tips for Hiring Without the Headaches…

Hiring friends and family can feel like the perfect solution when you're building your dream business—but is it always a good idea? I get it. You’re just starting out, everything about starting a business costs money and unless you have help, you won’t grow. The logical and most beneficial answer is to hire the people closest to you.  They are easily accessible, easy to talk to, and you already know them.  No long and drawn out recruiting and hiring process for you.  You can just pick up the phone, pitch your  idea to your best friend, she says yes, and BOOM!- you’ve found your first hire. 

Benefits of Hiring Friends and Family

If you’re anything like me, you and your friends have been close for a while. Most of my closest girlfriends and I have known each other for well over 20 years . We still spend quite a bit of time together traveling, going to events, visiting each other’s families, sharing business ideas and more. I know that if I call them and ask for help they’ll be right there. But, would I hire them?

I trust them to do a good job. I know they have the skills. Their work ethic is outstanding. Not to mention how comfortable I would feel negotiating the terms of their payment (hoping they are willing to be flexible). You get the point. Friends and family that agree to work for you can share your vision and commit to helping you succeed.

Challenges to Consider

Boundaries are a crucial part of protecting your personal and professional space and maintaining healthy relationships. Hiring your friends and family is akin to living with them. Things can get super challenging! If mutual expectations are not established and met, the lines can get blurred fairly quickly,  putting your personal and business relationship in jeopardy. 

Have you thought about what it would be like addressing potential poor performance or terminating your sister’s employment? What steps will you take to protect your connection with her? During a recent coaching session with a business leader I explained that inviting co-workers to be in meetings, interviews, and decision making sessions that they shouldn’t be a part of, just because of an existing friendship can raise red flags for other employees. There’s so many important responsibilities associated with building a successful business, accusations of favoritism and unfair treatment are the last things a new business leader needs to deal with. 

Tips for Successfully Hiring Friends and Family

1. Treat Them Like Any Other Candidate

Develop a clear job description for each role. Ensure job descriptions are written based on a set of criteria and expectations for the specific roles and not specifically for the people filling them. A job description is a tool that outlines duties and responsibilities. It also helps you as the business leader determine the necessary skills and qualifications an employee needs to be successful. 

Interview everyone. Create a consistent interview and hiring process that will ensure you are able to ask appropriate questions and gauge whether or not your friend is the best fit for the job. Consistent interview practices help reduce bias and keep hiring equitable.

2. Set Clear Boundaries

Clearly define how disagreements will be handled professionally. Establish the details of personal roles vs. professional. The last thing you want to do is wait until the disagreement happens and then try to figure out how to handle it. Set and share the standard. Everyone will be prepared to meet it when the time comes. 

3. Put Everything in Writing

As a growing business leader, you not only need clear job descriptions, but formal offers, and written performance evaluations are essential as well. These elements help keep you and your employees honest about the desired outcomes of the connection. If you notice your cousin is not meeting deadlines, you can include this in a formal performance review. If there are consequences such as disciplinary action or termination, it won’t be a surprise because expectations and outcomes have been thoroughly discussed and documented.

4. Have an Exit Strategy

Termination is a real and unfortunate possibility of employing anyone. This includes your friends and family. Talk about it upfront. A question you can ask to start is “What happens when/if this arrangement ends?” You want to be sure the relationship can shift back to strictly personal, successfully. The biggest risk of hiring friends and family is the possibility of ruining the relationship. 

5. Seek Outside HR Guidance

You don’t  have to go it alone. An experienced and dedicated HR consultant can help guide you through this process. Even before making your first hiring decision, the right HR consultant will assist you with executing the most effective and compliant structure for hiring, managing, and retaining employees. 

Conclusion

Hiring friends and family can be mutually beneficial for them and your business. While it might seem like the easiest way to grow your business fast, success lies in professionalism, boundaries, and documentation.

Navigating the challenges of hiring friends and family does not have to be overwhelming. At Morgan Carey Consulting Solutions, we specialize in creating hiring strategies, formal job descriptions, and offer letters that set your business up for success without hurting relationships. Let us help you build the team that works for you. Contact us today to schedule your free discovery call and take the first step toward a stronger business!