Hiring Outside the Family

By Tom Hubler, Executive Consultant

While some family businesses—particularly very small ones—are entirely family-run, most end up eventually hiring outside of the family for various roles. Over time, this creates a new situation family business owners need to prepare to deal with: how to hire a family member without being accused by non-family employees of favoritism or nepotism, and how to strike the right balance between being a great employer and taking care of your own family.

The Question of Hiring Family

Business owners and managers are in a truly unique position in our society as they get to decide who does and doesn’t get a job. That seems like an obvious statement, but it’s a huge power with implications that aren’t always fully recognized. This hiring power not only directly affects the people being hired, but it also guides the way the business grows and the way its culture develops.

In particular, the decision to hire family members can dramatically alter a business’s identity as well as expectations going forward. When hiring a stranger, it’s relatively simple: you have a job that needs doing, and this person is the best person you’ve found for the role and appears best suited for fitting into your company’s culture. While it’s certainly possible to hire family because they’re the right fit for the role (often because the family connection gives you unique insight into their skills and abilities), you’re also left with other questions... MORE