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How To Hire Your Brother

Use Caution When Giving Relatives And Friends A Job
By Don Sadler

In these tough economic times, it’s not uncommon for micro-business owners to be approached by family members or friends looking for a job. Laid off from work and unsuccessful in landing a new job, these relatives and friends may feel like you’re their last hope for employment.

It’s natural to want to help those who are closest to us and may be struggling to find work in a shrinking job market.

However, caution is in order when it comes to hiring family members and friends. There are few other business decisions that have the potential to create as much conflict and inflict as much damage—both to the people involved and your micro-business.

“Hiring family and friends creates immediate conflict with other employees, no matter how it’s handled,” says Chris Wilcox. He’s a partner in the Las Vegas-based accounting firm of Johnson, Jacobson & Wilcox and specializes in working with family-owned businesses.

“Employees will wonder how family and friends will be treated: Do they come in at the bottom of the totem pole or start at the top? The bottom line is that you need to have some kind of policy in place that governs hiring family and friends.”

Steven S. Little, a business growth consultant and the author of three books, including the recently published “Duck and (Re)Cover” (Wiley, 2009), concurs.

“Every owner thinks they’re diffe...