Five Guidelines for Hiring Family or Friends

Hiring friends and family draws as many strong, diverse opinions as discussions about politics.

I have worked with companies whose policy was to encourage nepotism with the idea that hiring family would instill loyalty. On the opposite end, some of my clients prohibit hiring any family members for fear of clouding people's judgment or influencing the person to whom the new hire is related.

From my own experience, here are the plusses of hiring a family member or friend:

• You know the person's strengths and weaknesses.

• In most cases, they are loyal.

• If times get tough, they usually won't bail out and start looking for another job.

But there are probably more disadvantages than advantages:

• Managers that have family and friends working for them either can have too high an expectation or don't hold people accountable. This can lead to acrimony both inside and outside the office. The manager is usually afraid that non-family and friends will perceive them as being soft or giving out special privileges.

• Firing a family member or friend can injure or destroy a relationship. I once had to fire my own father-in-law, which didn't exactly endear me to my mother-in-law or my wife. The worst was when I had to fire a life-long friend. Our relationship never recovered.

• Family and friends forget that inside the company, it is a business relationship and often step across the line -- causing embarrassing situations. They leave early without asking or enter their friend or family member's office unannounced.

• Family and friends usually want higher salaries or think the friend can get them more money.