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5 pros and cons of working with family members.
Have you ever thought about getting a business degree and using your leadership skills to work in a family business or start a business with your spouse or relatives? You’re not alone. According to SCORE, of the 28.8 million small businesses in the U.S., 19% are family-owned. 1 Family businesses range from two-person startups to Fortune 500 corporations.
Before starting or joining a family business, it’s important to consider the pros and cons. There are rich rewards to creating a family business or working for a family business, but there are also serious risks. Here are some pros and cons of working with family members:
The Upsides of Working With Family Members
- You can probably expect job security. Barring extreme circumstances, it’s unlikely that a family member will fire you or lay you off.
- The hiring process will be streamlined. If you’re hiring or being hired by a family member, there should be no need to conduct multiple interviews or check references.
- You might enjoy a flexible work environment. In a family business, you may be able to occasionally come to work late or leave early. A corporate job might not offer the same flexibility.
- You’ll work with people you trust. When you work with family, you have intimate knowledge of one another and instant camaraderie. Hopefully you enjoy one another’s company!
- You can make memories with your family. Most people spend much of their day away from their family members, working. If you work with your relatives, you’ll spend time together while also earning income.
The Downsides of Working With Family Members
- Your career growth may suffer. A family business may lack opportunities for promotion that can enhance your career, when compared to a corporate job.
- You may have to fire a family member. If a family member misses work or does a poor job, you’ll have to take action, which may be uncomfortable.
- You might not be able to take a family vacation. If your co-workers are your family members, traveling together would mean leaving the business unattended.
- Business disputes can become personal. An argument at home can continue in the workplace, and a business disagreement can cause tension at home.
- Ultimately, most family businesses don’t stay in the family. After 60 years, only 13% of family businesses are still in the family. The majority (70%) don’t survive the transition after a parent passes down the business to the next generation. 1
Whether you start a business or join a business, it’s important to be prepared. A business administration degree from an accredited university can help prepare you to become an entrepreneur or a valued team member in a family business. And earning your business degree online allows you to generate income while you learn.
A bachelor of science in business administration , also known as a BSBA, is an excellent starting point for business-oriented learners. Walden University offers an online BS in Business Administration program that is accredited by the Accreditation Council for Business Schools and Programs (ACBSP). The online degree program features a competitive, team-based business simulation exercise for the capstone project that immerses the student in a realistic business challenge.
If you already have a BSBA or a bachelor’s degree in any subject, consider pursuing a Master of Business Administration (MBA) degree. Walden offers a One-Year Fast-Track MBA option that can allow you to earn your master’s degree online in as few as 12 months. 2 Walden’s online MBA program is ACBSP-accredited, just as its online BSBA program is.
When you earn a BSBA or an MBA online , you can choose from two learning formats: course-based or competency-based. The course-based format is ideal for students who prefer a traditional, instructor-led approach. For students who want to have more control over the pacing of their studies, the competency-based degree format may be a good fit.
Business success requires a foundation of knowledge, in addition to perseverance. When you earn your business degree online, you can immediately apply your education to your business.
Walden is an accredited university offering BS in Business Administration and Master of Business Administration (MBA) degree programs online . Expand your career options and earn your degree in a convenient, flexible format that fits your busy life.
1 Source: www.score.org/resource/infographic-family-business-successes-and-obstacles 2 Time to completion and cost are not estimates of individual experience and will vary based on individual factors applicable to the student. Factors may be programmatic or academic such as tuition and fee increases and/or the student’s transfer credits accepted by Walden; program or specialization changes; unsuccessful course completion; credit load per term; part-time vs. full-time enrollment; writing, research, and editing skills; and individual progress in the program. Other factors may include personal issues such as the student’s employment obligations, caregiving responsibilities or health issues, leaves of absence, or other personal circumstances.
Walden University is accredited by The Higher Learning Commission, www.hlcommission.org .
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Business Know-How
Have you ever hired a family member in your business? Chances are that if you have, a couple of issues came up . . . to say the least!
And what do you do if that family member ends up not performing to the standards you’ve set for your business? Do you even have any options?
Can you fire a family member without igniting a small war?
Sorting Out the Issues of Working With Family
This kind of scenario brings to the surface two interrelated issues. The first is whether it is wise to work side-by-side with family members in the first place, and the second is whether you should consider hiring family members to do work for you or having them hire you.
My experience, and that of many readers I have heard from over the years, is that hiring family is fraught with danger.
I recall when I was a young pup in college, I got a speeding ticket and I needed a lawyer (yes, I was really speeding). So I hired my cousin Louis. Lou represented me very well. Afterwards, I got his bill, which was, in retrospect, very fair. But at the time, I was young and dumb and made a stink about the bill – “But we’re family!” I cried.
It eventually got cleared up, but I will say when I practiced law I remembered my youthful mistake, and made it a practice to try and not represent family members when I could avoid it.
Start Your Family Business
How to Work With Family Members and Not Have Issues
But that leads us to the second issue, namely, should one work with family, and if so, how do you do so without having major issues? There are pros and cons of course; some people love working with family members, while others can’t bear the thought of it.
Let’s consider both sides.
On the positive side of the ledger, one of the best things about working with family (and maybe one of the worst too) is the familiarity you have with one another. There is a shorthand that you have with a family business that you do not have with the world at large, and when you get along well with that person, that can really work to your benefit.
Working with a family member you like can really be fun.
By the same token, family members know your strengths and weaknesses, and that too can come in very handy in the workplace. Especially if you work with a family member who has different strengths than you, then that give and take can save time and hassle, since you have already spent years together.
Another great thing about working with family is that you will have someone around whom you can really trust. Not that you cannot trust your regular employees or partners of course, but there is just something about family that kicks that to a higher level.
The Not-So-Insignificant Downsides to Working With Family
The first is that mixing business and family can hurt both entities. On the business side, if things don’t work out with the family member, disciplining (not to mention firing) that person is very difficult.
Similarly, your loved one may not show you the respect that you deserve and need in the workplace; they may think that you are still jolly Uncle Joe at work, and not the boss that you are. And that, in turn, can either hurt morale or invite similar disrespect among others in your organization.
In fact, family members may even feel that the normal rules do not apply to them, or they may resent your authority, or they may goof off, or they may not understand when you can’t or don’t give them a raise.
And, like the question above, what do you do if they do a poor job? Or what if they miss too much work, or call in sick when you know that they are not sick? Of course you will have to take action, and that is where working with family can hurt the family. Family relationships can be challenging to mend after a rift at work.
The bottom line is that, unless you have an incredibly good fit, and everyone understands the rules and you have set up some guidelines, working together runs the very real risk of damaging all sorts of family relationships if things go south.
And the problem there is that if things do go south, unlike a disgruntled employee who leaves, a disgruntled family member will be around for the long haul.
Steve Strauss is a senior small business columnist at USA TODAY and author of 15 books, including The Small Business Bible.
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The Right Way to Hire and Work With Family
Hiring family members can be complicated but rewarding. Here's how to work with family members as employees.
- To successfully work with family, establish clear expectations and boundaries from the start.
- While hiring family members is legal, there are specific tax requirements for certain situations.
- The benefits of working with family include more trust and a sense of dedication to a shared goal; downsides include potential relationship damage and power abuse.
- This article is for small business owners considering hiring and working with their family members.
Working with family members can be an excellent way to benefit your business and build stronger relationships – or it can be frustrating and problematic. If you’re considering hiring family members, know that it will take preparation, dedication and communication to make it work. Before deciding whether to hire a family member, you should understand the pros and cons of working with family and how to set up the situation for success.
How to properly hire and work with family members
Hiring family members is not a decision to take lightly. Here are five tips to help you successfully hire and work with your family members.
1. Set clear expectations for family you hire.
Setting clear expectations for employees is essential under any circumstances. However, communicating expectations is critical when working with family members. If you’re hiring a family member, provide a job description outlining their duties, responsibilities and functions. Ensure they know whom to report to if it isn’t you.
2. Treat family like regular employees.
It’s crucial to treat a family member as you would any other employee. If your other team members feel you’re giving your family preferential treatment, it can cause resentment and discord, creating an unpleasant company culture .
On the other hand, you don’t want to abuse your relationship with your family member and mistreat them. Ensure that all your employees, family members or not, receive the same employee benefits package and treatment, and pay all employees according to their positions’ salary ranges .
Conduct effective performance reviews regularly for family members as you would for any other employee. Assess their progress, offer suggestions for improvement and reward them for excellent work.
3. Ensure family members are qualified for the job.
When hiring employees , many small business owners fall into the trap of hiring family because they’re family, not because they’re the best person for the job. Though it may seem like the right thing to do at the moment, this can hurt your business in the long run.
If you’re considering hiring a family member, ensure they have the qualifications and experience necessary to do the job – and do it well.
4. Have a plan in case hiring your family member doesn’t work out.
It’s essential to prepare for the possibility of terminating your working relationship with a family member. You may need to let them go because you no longer need their services, or you may have to fire them.
Because of potential family complications, create a plan to communicate working relationship changes while maintaining your personal relationship.
5. Communicate your expectations for your working relationship.
Communicate to your family member that you must maintain a professional relationship at work. You don’t want them popping into your office and sitting on your desk during their breaks. Like workplace friendship boundaries , separating your personal and professional relationships with any family members you hire is crucial.
A similar tricky situation arises when colleagues have romantic relationships. Learn how to manage workplace relationships carefully, whether you’re having an office romance or two of your employees are dating.
Should you hire family?
Since family is about as personal as it gets, whether you should hire a family member depends on various factors.
- Consider why you want to hire family. The first step is to carefully consider your reasons for working with family. Is it because you genuinely believe they will bring value to your business, or is it because they need a job and you feel obligated to help them?
- Consider your unique relationship. You must also consider your relationship with any family you hire. Can you maintain a professional relationship at work? “You’ve worked really hard to get your business where it is today,” said Meaghan Thomas, co-owner and president of Pinch Spice Market. “You need to be able to trust that your family member takes it as seriously as you do. If you hire a family member that ends up being a bit of a mooch or a slacker – or, on the flip side, you end up being a mean, unsupportive boss to them – you’re going to have problems that could seriously hurt your relationship.”
- Consider everyone’s goals. You’ve set achievable goals for your business , and your family member likely has career goals . Do your goals overlap? Is working with you a good career move? Do they have a vision for your business? Having goals and a vision in common can go a long way to promote a good working relationship and make it easier to work professionally with family.
Although it’s entirely legal to hire and work with family members, perceived nepotism can be divisive in the workplace. Establish strict policies in your employee handbook to prevent preferential treatment.
Tax considerations for working with family members
You need to consider some unique tax situations when working with family.
When employing your child
Consider labor and tax laws when employing your children. For example, children under 18 can’t operate dangerous machinery, and it’s illegal for children under the age of 14 to work at all. Carefully review federal and state laws, as they may vary.
Before your child begins working in your business, consider how you’ll pay them and withhold their payroll taxes ; this will vary according to your business. The IRS rules differ for corporations and partnerships.
- Corporations: If your business is a corporation , all the money you pay your child is subject to payroll taxes.
- Partnerships: If your business is a partnership, all the money you pay your child is subject to payroll taxes unless both partners are the child’s parents.
When employing your spouse
If you hire your spouse as an employee, you must withhold federal income taxes and FICA taxes from their pay. If your spouse is a business co-owner, you can file as co-owners. If you do this, you must consider self-employed tax rules and obligations.
You can also file as a qualified joint venture, which can simplify your tax reporting.
When hiring adult family members
You should treat all adult family members you hire like any other employee.
- Have them fill out a W-4 form upon hire, and withhold federal income taxes according to the information on their form.
- Withhold FICA taxes and include family member pay when calculating your business’s FICA taxes.
- Include family member pay when calculating unemployment taxes and workers’ compensation.
- Pay overtime to family members the same way you do for regular employees.
- Provide the same benefits ( paid time off , sick leave , health insurance ) to family members as you do to regular employees.
You don’t have to pay federal unemployment tax or FICA tax (which covers Social Security and Medicare) on your children’s wages.
Pros and cons of working with family
There are benefits and drawbacks to working with family. On the one hand, it can mean a loyal and trusted confidant; on the other, it can mean a tense and unprofessional relationship that doesn’t add value to your business.
Here’s what some real small business owners who work with family members had to say.
Pros of working with family members
- You trust and are honest with each other. “They know you inside and out,” said Thomas, who co-owns Pinch Spice Market with her partner. “They can lift you up when you need it and call you on your baloney when you need to be grounded. You can be totally honest with them.”
- They’re dedicated to you and the business. “In many cases, your relationship can make the family member more loyal to you and your cause,” said Ryan Cook, digital marketing specialist and entrepreneur. “If you come from the same family, you probably have a lot of the same beliefs and attitudes, which can reduce disagreement and friction.”
- It’s an opportunity for children to gain experience. “[A family business] can be a chance for a young person to gain valuable working experience, setting them ahead of their peers when they are able to enter the general workforce,” said Tyler Read, founder of PTpioneer. “However, it can be a con in the kid’s eyes if they are forced into work they don’t want to do.”
- You could save money. “There can be a major financial benefit of working with your significant other, because you can share an accountant, a tax preparer, a cell phone plan and several other expenses that unrelated colleagues can’t share,” said Nerissa Zhang, CEO of The Bright App.
According to a PwC survey , 67% of U.S. family businesses have next-gen family members working for the company who are expected to become majority shareholders within five years. This foresight ensures continuity if a founder dies or leaves the business.
Cons of working with family members
- Work never goes away. “If you don’t set the right boundaries, being together all the time can get old, and you can start to feel like you don’t have any autonomy,” Thomas said. “You take work home with you – it’s hard to ‘turn off’ when your business partner also sits at the dinner table with you. It’s so important to define work and life space and try to not have them overlap too much.”
- They might end up resenting you. “If you are offering a family member a job in something they aren’t particularly interested in, just to help them out or for whatever reason, this is where problems could brew, as one could become resentful of the other’s success or happiness in their job,” said Michael Lowe, CEO of CarPassionate.
- They may abuse the relationship. “Family members may be more prone to disobey company protocol since they can leverage their relationship with you,” Cook said.
- It could affect your relationship. “Layoffs might be the toughest thing to do,” said Michael Tomaszewski, a certified professional resume writer and career advice writer at Zety. “Whatever reasons you have to let someone go, firing a family member will make you want to eat bubble wrap. There’s just not a good way to do this without ruining personal relationships, possibly with the whole family.”
Examples of successful family-run businesses
If you’re concerned about employing family members, it may help to look at family-run success stories.
- Walmart: One of the most famous family-run businesses, Walmart was founded by Sam Walton, who passed the business down to his three children. The Walton family currently owns more than half of the Walmart business at a market cap of $241 billion.
- Comcast: This telecommunications company is another successful family-owned business. Ralph Roberts founded it as a small cable company in Mississippi, growing it into a billion-dollar empire before passing down the business to his son.
- BMW: In 1916, Günther Quandt founded an aircraft engine production company, which later became known as BMW. BMW became one of the largest multinational manufacturers of luxury vehicles. While the company underwent numerous transitions over the years, the Quandt family still holds almost half its shares. Quandt’s grandson, Stefan Quandt, currently owns a 23.6% stake in the business and serves as a deputy chairman of the supervisory board.
- Nike: Nike is headed by the Knight family. Phil Knight founded it at the University of Oregon in 1964, and it’s now valued at $110.3 billion. Knight’s son Travis was appointed to Nike’s board of directors in 2015.
- Mars: The Mars company was started in 1911 by Frank C. Mars, who made and sold homemade butter candy. The company has been passed down to family members who now own Mars Inc. and sit on the board of directors. The Mars family is worth an estimated $78 billion.
Is hiring family worth it?
Hiring and working with family members is perfectly legal, but you should navigate the situation cautiously. Benefits include saving money and working with dedicated people you trust. However, it can also be challenging to establish clear boundaries and prevent work from affecting your personal relationship.
To secure a successful working relationship, clearly communicate your expectations, treat your family member as any other employee and ensure they provide value to your business. As long as they’re qualified, have a good work ethic and can deliver excellent results – and you clearly understand what hiring family entails – the relationship can benefit both parties.
Nadia Reckmann contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.
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Should You Work With Family Members?
They may be excited about your business, but is it a good idea to work with family on your startup?
Question: Working with family members: yes or no, and why?
Yes: you can be compeletely honest with each other.
"My twin brother is my partner in my oldest company, and it's great because we can be honest with one another, and I trust him significantly more than I've trusted partners in the past. It also just so happens that our skill sets are completely opposite and complementary. If you can share a womb, you can share a business! "
Yes: It's Less Expensive Than Using Consultants
"My immediate family members each work in the marketing, entertainment and retail industries, which is the complete opposite of my area of expertise (finance). They were able to give me constructive criticism when I ventured into their major areas of expertise, and their advice and help has allowed me to grow the business without having to pay for an expensive consultant. "
Yes: They Are the Most Loyal
"We actually have 10 family members that work with us, and they are very loyal and always watch our backs. Although, I will say it is very important to define roles and boundaries with family immediately. They do tend to push the limits of what is acceptable if rules are not clearly defined."
Yes: There Are Fewer Trust Issues
"We love hiring family at our companies. The upside is that you know you don't have to worry about trust issues. Having that out of the way is a huge plus. However, you must make it clear that business is business. This means not taking things personally and accepting criticism just as you would from any other co-worker. "
No: The Risk of Losing The Relationship Is too Great
"While I love my family, starting a business is a risky proposition. While it's nice to think about the upside of your family getting rich, I prefer to think about hedging risk. The downside of losing money -- and possibly a friend if there is contention -- is too great to ignore."
No: People Are Different at Home and at Work
"The people you know and love in the family room can be polar opposites of themselves when they're sitting in a conference room. People sometimes act differently in the workplace, and you might not like what you see or hear. If you value your family relationships, be prepared to experience another side of your family that you haven't seen. Depending on the person, this could be a good or bad thing."
No: How You Get Along Personally and Professionally Might Be Different
"My wife has been my business partner at my startup for the past four years. I've been lucky enough to find a wonderful partner in her, both personally and professionally. However, I never advise working with family. It's too risky. Getting along with a family member personally is no indication of how you work together professionally. Money and business can damage your relationship. It's not worth it."
Yes: Family Will Stick With You Through Good and Bad
"Family is the strongest bond that you will ever make in your life. Friends may come and go at their own convenience, but family will stick through the good and the bad, which naturally make good business partnerships. However, you need to set clear expectations up front to ensure that each family member involved understands what's expected of him or her."
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Working with Family Members
Working with family members can be everything from enjoyable, productive and rewarding to disruptive, frustrating and unpleasant. The closeness driven by work can bring family members closer together in satisfying relationships, but it can also create problems that foster hard feelings and drive people away from each other. All is dependent on the personalities of the persons involved, their understanding of their roles and their willingness to accept them, and the main management style. This fact sheet will focus on the family-owned and operated farm.
As far as the family-owned and operated farm is concerned, it’s impossible to say with absolute certainty whether working with family members on day-to-day activities holds more advantages than disadvantages or vice versa; it can go either way depending on several factors, including the following:
- How much potential is there for healthy or unhealthy competition among family members? When there are more aspiring family members than there are good positions or there’s limited recognition and rewards to go around, the potential for trouble is present.
- Family members will know each other much better than people who are together for work only. This can be good or bad; one can know the whole person including his strengths, capabilities, interests better while also be ing biased by knowledge of personal characteristics.
- Work-related problems can be taken home, where problems on the job can continue. Also, home-related problems can readily be taken to work when people who live together work together as well.
- Certain people who are together for much of their off-work time as well as every workday experience problems related to overexposure. Depending on personality and temperament, this constant togetherness can either be a strength or weakness. For the family-owned and operated farm to be successful and with minimal problems, it is essential to set up a code of conduct:
- Everyone involved, whether family members or others, understands his/her role completely and knows who is responsible for what, the boundaries of everyone’s authority, and who has the final authority when disagreements arise.
- Favoritism must be avoided at all times even if it is only a perception of favoritism.
- Everyone involved is subject to the same rules and policies and equal treatment. This is particularly imperative where disciplinary issues are concerned.
Some rules you may want to follow:
- Keep discussions about your personal family matters out of the workplace
- Keep a business atmosphere
- Don’t bring up personal matters during business discussions
- Help employees understand that this is a business
- Define your personal/home boundaries for your employees
- Understand what information is to be kept confidential
- Leave work issues at work, don’t bring them home with you
First, follow the golden rule: Make sure that everything that occurs, including the delegation of authority and responsibility, decision-making, promotions, rewards, demotions, praise and salary increases, is based on concrete and clearly stated knowledge, skills, abilities and personality traits.
Second, leave your family issues at home. While this can often seem impossible, it must be attempted. Relatives may have grown up together, may have played, competed, collaborated, loved and hated each other at one time, but the workplace is not an environment in which you and your relatives should play out or resolve your childhood or adult problems.
Instead, each family member should strive to interact with other relatives involved in the farm operation in the same neutral manner they use when interacting with non-family members. If they can’t manage a non-neutral stance, expect disaster ahead for your work environment and your farm operation outcomes.
Third, you must establish clear channels for communication. There are always ways to work the system and to go to a favorite relative to get the task resolved. Invariably, this means going over or around the proper individual. And that can seem preferable, especially if the proper individual is a relative who is not well liked. But that shouldn’t be allowed. When this happens, old family rivalries and patterns emerge that can further complicate an already complicated issue.
The best way to avoid these and similar experiences is to drop interpersonal dislikes and deal directly with the individual involved. Based on these rules, the goal is to treat family and non-family alike in all situations.
Working For or With Your In-Laws
Working for or with your in-laws has different challenges and opportunities. If you have a good relationship with your in-laws, working with them might be a opportunity. For others, it might create special challenges in your personal life and at home. Contemplate all of the possibilities and challenges before you get too excited.
Items to consider when working for or with your In-Laws
When working for or with your in-laws, you have to remember that they are the owners. You will have to follow their procedures. If you come to disagreement about something in the farm operation, it could impact your personal and home life. Giving constructive suggestions is good. Accepting that they may turn down your suggestion might be a little more difficult. If your personal relationship with your in-laws is not strong then seek employment elsewhere.
Finances seem to become an issue in many family farm operations. Your in-laws may pay you more simply because you are their in-law. This could be a good thing or a bad thing depending on where you are situated. Your in-laws might expect you to work for less than their other employees. Chances are you will be compensated the same as all the other employees. Some problems could arise when you ask for a raise or other favors. On the other hand, it may be harder for you to approach your in-laws for a pay raise than a supervisor who is not related. Your work hours may be different from other employees. Expectations of you might be different with additional responsibilities or coverage. Understand that you are just as likely to be dismissed during downsizing or when finances are limited or reduced. Know this is a possibility and have a plan in place that allows you to move to other employment.
Getting promoted could work out fine if you are promoted based on performance and not because you are an in-law. Being promoted because you are an in-law may create a barrier between you and your co-workers if they see it as nepotism. There will always workers that wish to stir up conflict. Be sure that you are willing to take the criticism that this might bring before you start to work.
One positive item about working for and with the in-laws farm operation is that you get the opportunity to learn about the whole farm operation. This is invaluable if the farm operation is passed down at a later time. Understanding the whole farm operation is an excellent way to learn more about the family and how it functions.
Working for or with your in-laws farm operation might not have been what you had planned for your life. It does have its positive and negative points you need to consider. You may be around your in-laws more than you initially wanted to be. You may also build a closer relationship with them.
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Apr 9, 2020
Benefits of working with family/friends!
This week at the youth group we are focusing on family and friends, the people that it is important to stay unified with at times like these.
We got to thinking about the fact that many people, particularly young people, will end up working with a family member or friend at some point in their lives. This could be simply working for a relative part-time or fully going into business together.
You may be wondering whether working with someone you are close to is a good idea in the long run. Well, there are certain benefits to be gained from working with a close friend or family member.
Obviously, friends and family are people that you are going to know pretty well. Knowing someone means that you have a level of trust in their abilities and also their judgments. If you’re a young person working for a family member or close friend, you know that you can ask questions and accept guidance from them, they also know your skill level and can assign jobs for you accordingly. If you are working with them as a partnership knowing each other’s strengths and weaknesses from the get-go is good for establishing a strong business and a team.
Knowing and trusting one another can also build loyalty in a team. Being part of a business that includes or is run by someone you know & love will likely give you a vested interest in seeing the company do well. This can translate into a stronger work ethic and wanting to do more for the team. This is something to remember as an employer and as an employee.
Opportunity
The reason so many young people start out their working lives with a job for a family member is the fact that it is an easy opportunity for a job. When job seeking, many people say that it’s often about who you know, and that very much applies here. If you have a friend or family member that can give you a job, however small, you can learn some skills and get some experience that you can then apply later on in jobs you get for yourself. Even if the job they can get you is not what you want to do in the future, there are likely some skills to gain that can be applied universally.
Working with a friend or relation also will likely afford you the opportunity to have a more flexible working environment. Being comfortable around your partners or employers is very useful when it comes to negotiating time off, breaks or even just a change in working patterns. It will also be easier for you to address problems that you or any other employees may be facing at work.
Having people be interested in and excited about you as both a person and as a worker should not be underestimated. Being both valued and listened to will give you more confidence in your abilities and allow you to speak up and even take risks at work. Working with close friends or relatives means you don’t have to work as hard to earn value at work. You are working with people who already know you and probably like you, therefore you can hit the ground running as a valued team member.
This benefit also goes both ways. If you get to a point where you are the employer, hiring people that you already know & value can help your company grow. You also know that they value you and your vision, so you will likely be employing people that will put the effort in to do a good job for you.
Working for a family-owned company often means that the family has a place there permanently. If you are employed by a family member or even a close friend you are likely to have greater job security as letting you go could lead to a complicated relationship outside of work that no one wants. Obviously, you should not take the security for granted and still strive to do your best work. The security, however, will help you to relax into the job and not feel as much pressure to do well right from the get-go. This is particularly important for young people just entering the workspace who may be anxious about the new environment.
Things to remember
While there are benefits to working with or for family and friends, as we’ve discussed, it is also important to keep in mind the drawbacks so that you can counteract them.
Though you are close and friendly with these people it is important to remain professional and business-minded at all times. Other workers may feel unfairly treated if you do not take the job seriously or break rules simply because of the security that being a family member affords you. don’t allow yourself to get special treatment and remember that all rules apply to you. Remember to respect your managers and co-workers no matter who they are.
It may also be helpful to try and get a job on your own at some point. This way if you ever decide to move to a different company or career, you can show recruiters that you do have the skills to get a job on your own merits and haven’t just been handed a role by relations. Remember that working with friends and family is a good starting point, and you can always come back to a family business later on after branching out on your own.
Working for or with family members or close friends can be a very rewarding experience, especially early on in a young person’s career. If you have the opportunity it is worth taking, just remember to always stay professional and focus on where you want it to take you rather than using it as a crutch.
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25 Reasons Why Hiring Your Relatives Is an Even Worse Idea Than You Suspected
Put family on your payroll and you'll never have to worry about leaving your comfort zone again.
By John Rampton • Jul 7, 2017
Opinions expressed by Entrepreneur contributors are their own.
The idea of hiring your family to help get your startup or small business going presents some advantages, such as them working for a reduced wage until cash flow increases. You may feel that family are the only ones that you can impose upon that much.
As a whole, your nearest and dearest are also pretty reliable and trustworthy. They're probably not going to throw you under the bus, but there's also a lot of reasons why you shouldn't hire and work with your relatives.
When I got married I thought working with my spouse was a grand idea. All of the above reasons were true. Little did I know that it would severely damage our relationship. Here are 25 reasonable reasons it's probably not the best idea to work with another family member.
1. You have no bargaining chips.
Perhaps the biggest problem when hiring or working with family is that you don't have the leverage you would have with other colleagues. This may include asking for rework, negotiating prices or getting tough when a deadline approaches.
Conrad Neuf, a former senior construction manager for Toll Brothers, saw this situation throughout his career. Neuf observed if a homeowner wasn't tough with a contractor or repairmen it turned out to be a family member or a friend.
"Whenever you're dealing with a friend there is another element that enters into it that would not be there if it were a strictly business relationship with a stranger," Neuf said . "You lose a lot of leverage. You're unlikely to put your foot down for a lot of things. Everything is weighed by the fact that you could cause problems in the relationship or family."
Related: 4 Reasons You Should Never Hire a Family Member
2. The business comes to family functions.
There are people who have the amazing ability to separate their personal and professional lives. They have learned to completely shut off work once they leave the workplace, but they're few and far between.
Most of us will inevitably bring work home with us -- whether it's the frustration or sending emails when it's time for dinner. Adding family to the mix means the need for a greater concentration of balance.
Birthday parties, barbecues, reunions and weddings are not the time to air the business. You don't want tensions brewing at the office to boil over in front of the entire family.
Occasionally, the balance can be thrown off by the spouses of those family or friends working together. The spouse may come home and complain in confidence, then the spouse brings up the situation at inappropriate times.
It's awkward and could be serious enough that it ruins the entire function. There has to be strict rules governing conversation outside of work hours.
3. Emotion is always involved.
Try as hard you can, you simply can't avoid the reality that emotion is a part of every relationship and how that can lead to a messy work environment.
For example, if you have a talk with your cousin about their performance. Maybe you offer some advice on how they can make the proper adjustments.
Any other employee would just say, "okay." But a relative or friend may take something personally because of your existing relationship. Messy. Then there has to be the time involved to solve the point of contention.
Related: How to Manage the Challenges of a Family Business
4. There's already baggage.
You may think that you have the perfect family and there's no baggage between family members. I hate to be the bearer of bad news, but that's never the entire truth and no matter how big or small, all of that baggage will come to light during stressful situations.
You knew that your brother is still upset that your parents didn't attend every one of his baseball games. The parents sure came to your events. You probably didn't know it was still a controversy in their mind -- until you started bickering about work-related issues.
5. Limited communication with colleagues.
It's very unlikely that any of your colleagues are going to speak freely about your relative. That may be a good thing if it prevents gossip, but what if the issue needs to be discussed? Generally speaking, your other employee's are already talking about this -- just not to you.
Maybe your nephew is incompetent and constantly making mistakes. Do you think anyone is going to mention that to you?
Related: 5 Reasons Why 'Family' and 'Business' Do Mix
6. You're more likely to work without a contract.
Whether you're a freelancer or run a small business you should always sign an agreement or contract with your clients or customers. This is a protection to both parties. It places you both squarely on the same page.
You will both understand the expectations when it comes to the scope of the work. The contract clearly explains how and when you're going to get paid.
When working with a family member, however, you may be hesitant to ask them to sign a contract. You want to avoid this uncomfortable situation even if you know clarification is necessary.
7. They expect extra freedoms.
While not each and every family member is guilty of this, their are some who take advantage of being a part of the family to ask for time off, miss deadlines, come in late, go home early or presume their authority. As the boss, you may not even see it but your other employees will.
Related: 4 Ways to Manage Working Relationships With Toxic Family Members
8. They may not be the best qualified.
The only way for your business to scale is by surrounding yourself with specialists in their respective field. You must have those who are qualified enough to help you move forward.
Bringing in family doesn't guarantee the highest quality. Even though you have good intentions, that may actually do more harm than good. Have you passed over a better candidate just for the sake of working with a friend or family?
9. Requirements are too high or too low.
You don't want any of your co-workers to believe that your relative is getting VIP treatment. As a result you assign him or her even more responsibilities. Your relative might not appreciate this and is now getting stressed out over the additional workload.
Or the opposite happens and you start going easier on them because you know that your family member is having a hard time. As a result, you pass their responsibilities to other co-workers. How do you think they'll respond?
When I was in university there was a referee at the basketball games who was a professor at the university. We always hoped he would not be the ref. We knew absolutely that we would lose the game if he was the ref because he would be so completely fair that he was unfair.
Related: 10 Questions to Ask Before Family and Friends Become Business Partners
10. The relationship changes forever.
Family member fight with each other. That's what families do. Most of the time it's over minor situations that are resolved in due time.
Once business gets involved, there's no reversing the relationship when things go sour. My dad and uncle started a business years ago. It didn't pan out and they really haven't spoken since.
11. Your relatives are insiders.
Trying to juggle that fine line between work and your personal lives becomes increasingly difficult. Does your cousin go tell your aunt and uncle what's going on at work? Did another cousin come and say, "Hey, so sorry to hear your customer base is down."
They tell all the dirt on a new employee, who you didn't know lived up the street from grandma. If those lines weren't blurred before, then they definitely are now.
Related: 8 Ways to Reduce the Stress of Balancing Work and Family
12. Money makes people consider the unthinkable.
Don't believe me? Make it rain at your next family function and see how insane your otherwise reserved relatives react. Now think what happens if your business takes-off, or you get a raise. What if you're a seasonal business and can't pay your employees/family?
Everything from jealousy to resentment to anger is going to start creeping into the relationship or into your business.
13. Inability to terminate the business relationship in a friendly manner.
When you have a careless employee you can hold-back bonuses or even give them a pink-slip. Although it's harsh, and always difficult, that's a part of business.
But, when dealing with family, how can you fire your cousin when you know the entire family is going to hear about it?
What if the family is against your decision, and they are not bothered by mixing in this business concern? How about the family member who has to come and give you some "friendly advice," so you will get it?
Related: 9 Essentials for Any Family Business to Thrive
14. Project delays or poor work.
Why would a relative be motivated to put their best foot forward when they know that you're not going to criticize them. What if they believe you will definitely never fire them?
I'm not saying this is always the case, but when you don't provide your family members with constructive criticism how can they improve on their weaknesses?
15. They give unwanted input.
Since you're family, it's not surprising that your relatives feel comfortable enough to tell you what's best for your company. Even worse? You can't tell them to mind their business because, well, they're family.
16. Handling adversity.
You're going to fail . It's a fact that you need to accept and learn from. But, when you face this adversity you want your family to be there to support you. Other's entangled with your business's failure can make everything worse. It makes a bad situation even worse.
Related: Secrets of a Third-Generation Family Business Where Families Come to Work
17. It's harder to be objective.
When you bring-on a family member you only view their awesome and unique qualities instead of looking at their flaws. Maybe they're not a good fit for your business.
I have cousin who is an extremely talented graphic designer. I would love to have him as a part of my team, but he's not always the most reliable and is known for constantly flaking out.
18. There's collateral damage.
As mentioned earlier, when there's beef at work, it could impact the entire family. Lines are drawn and sides are chosen. The family is now divided because of the work relationship soured between you and your family.
At the same time, even though your family member works for that doesn't mean that they're a decision maker. However, others on the outside may not be aware of that fact and associate your relative with your business.
That's not always a problem, but if they rub someone the wrong way, then it's guilt-by-association.
19. There will be perceived nepotism.
You've brought on your sibling or cousin and your colleagues are well aware of it. Most days that's not a biggie, but it does when your family member starts getting recognized for their work.
They're not going to say it to your face, but there will be people who believe that the sole reason for your relative's success is simply because they're related to you.
20. Do you really know them?
While some relatives are extremely close, do you tell them about your shortcomings? Probably not. You save those conversations for your spouse or best friend.
Even though you're little brother tells you he's successful, can you be certain of that? What exactly does he do? How did become so successful? What can he bring to the table? If you don't know, then why consider him as a partner?
21. Little or no alone time.
Having some alone time is actually beneficial since it helps with productivity, and gives you a chance to recharge. Studies show that alone time boosts your self-esteem.
It makes you appreciate people more, and increases your emotional intelligence. Unfortunately, you may not have as much alone time when working with a family member like your spouse.
22. May not look at commitments as real.
It's not uncommon for families to view agreements, commitments, and deadlines as suggestions. They are not seeing something that is important and absolute.
After all, you're their cousin and not the boss. That can be problem when you miss a deadline for a high-profile client. How can they trust you moving forward?
23. No one to vent to.
"Generally, it's better to let things out than hold them in. And doing so feels almost akin to problem-solving—in the moment, at least," writes Leon F. Seltzer, Ph.D .
"Venting your frustrations alleviates tension and stress. You almost always feel better—and "lighter" -- after sharing some perceived threat, indignity, misfortune, or injustice."
In short, healthy and limited venting can be a good thing. But, who can you vent to when working side-by-side with your spouse, sibling, or cousin?
24. Too much time together.
Spending almost 24/7 with someone start to feel like a chore instead of genuine time spent together. As I mentioned above, we all need some alone time alone. We need to spend some time apart from our loved ones if we want to preserve those relationships.
25. Failure leaves them without a livelihood.
In an ideal world, doing business with those closest to us would be both a risk-free and rewarding experience. Sometimes that happens.
But, what about the worst-case scenario of a the business closing? Not only is your livelihood in jeopardy so is your family members.
That's a heavy burden to place on your shoulders. And, even if they get back on their feet, don't be surprised if they hold some resentment towards you.
Have you worked with a family member? Was it a good or bad experience? - Message me on personal site to let me know your thoughts!
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