The Advantages and Disadvantages of Employing Relatives in Your Company

Working with family members is more common than you might think. Every family is different, and hiring a family member can come with both advantages and challenges. Let’s explore whether this option is suitable for you.

You already know if your family member presents themselves well, did well in school, and is trustworthy. If it’s your spouse, you likely know how well your skills and qualities complement each other. You have much more information about a family member than you could ever gather from a one-hour job interview with a stranger.

If you have a good relationship with this person, they will probably feel a sense of loyalty and pressure to perform well on the job. They won’t want to slack off and risk causing a conflict with you. Disappointing a sibling or parent is much worse than letting down a colleague.

When you hire a close family member, both of your financial successes are often closely linked. When the business thrives, both of you benefit, which can be a strong motivator. In some cases, hiring a family member can even save you money on taxes.

Your relationship is bound to change when you start working together. You’ll be working towards a common goal, which can add an exciting new dimension to your relationship.

However, when the boss is a relative, the employee might assume they’ll get special treatment, such as showing up late or taking long lunch breaks. You don’t want to hire anyone who might upset other employees or force you to play favorites.

This is especially true if you hire your spouse or partner. Communicating professionally is different from personal communication, and spending too much time together can cause friction. If you’re not careful, work issues can bleed into your personal life. Only take this step if your relationship is strong.

If things don’t work out, your relationship could suffer. You might have to fire them or they might quit, which can cause lasting damage. Think about the holidays and family gatherings where you’ll still see each other.

Working with a family member will change your relationship—sometimes for the better and sometimes for the worse. Stress from the business could lead to arguments that wouldn’t have happened otherwise, but sharing your life’s work could bring you closer and strengthen your bond.

My advice? Don’t hire a family member just to give them a job. Only consider it if you genuinely believe they will do well and work well with your team. Otherwise, you’re setting yourself up for potential conflicts and tough conversations.

If possible, create a trial period, such as asking for their help during a busy season or offering a summer internship. This allows both of you to test the waters without any awkwardness if it doesn’t work out.

Finally, set realistic expectations. It may not work out, and that’s okay. Emphasize open communication and feedback. As long as you both approach this with a positive attitude and a willingness to improve, it can be a rewarding experience.