Your pathway to profitability.

In business, especially when it is your own business, hiring friends and family can be tempting. Afterall, one of the biggest complaints entrepreneurs have is how to find talented and reliable employees. It can put relationships in danger to start a business with friends or family but it is similarly challenging to hire someone you don't know.

There are inevitable pros and cons. Pro: relatives and close friends may have an immediate commitment to your company's success. Con: it is terribly painful to have to fire them if things don't work out.

Before you decide if getting your best friend, daughter, son or parents involved, review the list of advantages and disadvantages below; they may help minimize the chances of making a wrong decision and the inherent problems that may result. Perhaps you will find the major success following in "the Ace of Cakes" footsteps and hiring friends.

Advantages:

• Relatives and friends may have a stronger commitment to your company.
• You may already be familiar with their skills and capabilities making it easier to assign tasks based on their strengths.
• There may be financial advantages hiring family and providing them with an opportunity to earn money.
• Great work ethics and positive attitudes can be heredity.
• Sometimes we get our best ideas from friends and family.

Disadvantages:

• Relatives or friends may expect extra benefits and be prone to take advantage of their status.
• Other employees might be upset and jealous by nepotism and consider it favoritism.
• Personal issues and problems may follow you into the workplace making it an uncomfortable and unproductive situation.
• The reverse is true and problems and concerns at work may be brought home and influence your relationship with family and friends.
• The dynamics of supervising and delegating responsibility to someone close to you can be stressful and difficult for all concerned.

Hiring family and friends is tricky. Confirm that they have the skills and experience necessary. Define roles and responsibilities. Before hiring make sure everyone has a clear understanding of expectations.

Carefully consider all the positives and negatives. Ask your relative or friend to consider all the positives and negatives. It may turnout that hiring family or friends would be disastrous. On the other hand, you may find that hiring them creates a happy, positive environment and your business grows faster.

Labels: staffing