Does employing my family and friends help or hinder my business?

At Mindful HR we specialise in working with small to medium sized businesses that require HR and Recruitment services.  Given the size of our clientele, I often come across clients that heavily employ their friends and family and hence often ask myself whether employing these people is helping or hindering their business.

Mark Zuckerburg, CEO of Facebook, recently stated on a podcast that hiring good staff is based on aligning common goals and values, a bit like finding a life partner. Often people may hire more suitably skilled staff yet their focus and value structure is different to your own and hence outcomes are not as favourable.

When hiring friends and family, more often than not, their values and beliefs are reflective of our own.  They have a genuine investment in what is "best for the business". They will perform whatever is required of them to get the job done right, not just done, done to the very best of their ability...even if it is outside of their job description. They will be reliable, trustworthy and can often act as another set of "ears and eyes" across the business.

That said, the number one issue I encounter for businesses employing friends and family is when they aren't "meeting the requirements" of their job role.  Business owners often then feel obligated to retain the employee in the same role or by moving them to another role (potentially just moving the problem) because they don't want to "upset" the family/friendship connection.  All too often, I see business owners financing friends and family out of obligation and loyalty.

As difficult as it may be, my advice is to step back from the business and review it under a different lense.  Do you have the right people in the right role across the business?  Are the people you employ meeting their KPI's, successfully fulfilling their job functionality, regardless of the connection.  Is each individual clear on their expectation? As a business owner, if you find this difficult to dissect, it may be worth investing in a third party to get a neutral view.

Everyone has their strengths and weaknesses, as a business owner you need to ensure that you are benefiting from those strengths regardless of the connection.  What & who is best for your business?

If you would like some external assistance in this area, feel free to contact Mindful HR on 0419499725.