Many lifelong friendships begin in the workplace, but can it work the other way around? Can aspiring entrepreneurs rely on their nearest and dearest to help them do what it takes to succeed? Apparently, 80% of startup founders recruit family and friends What are the main benefits and drawbacks of hiring a loved one, as well as what exactly is required to make this kind of arrangement workable in practice? Some important considerations are needed, relating to:
Trust For many entrepreneurs, a startup business is their baby. This makes delegating authority to anyone incredibly challenging. Giving those you already implicitly trust a key position in your business endeavors makes perfect sense because trust is a crucial factor. After all, if everything goes well, you’ll be able to celebrate your shared success and advance to even greater things with their support.
However, trust is a two-way street. And even though you can rely on someone to be open and honest with you, you might not always agree with their opinions. Additionally, you must have faith in someone’s capacity to carry out the task you have assigned to them. Sometimes our capacity to trust can cloud our judgement. For instance, while your partner may be excellent at managing the finances of your family, they may not be the best choice for the crucial CFO position you want to fill. If you decide to hire someone you trust, it’s crucial to make sure that their qualifications correspond to the demands of your company.
You’ll be keeping an eye on every dollar you earn as a company founder. The obvious advantage of hiring a close friend or family member is that you’ll immediately save money on advertising and recruitment costs. You also might be able to pay them less. Or (if that doesn’t convince them), consider giving them equity in return for their hard work. Mark Zuckerberg, the creator of Facebook, turned to his marketing pro sister, Randi, for assistance when he needed someone to help him communicate his vision. She voluntarily reduced her pay to support her younger brother. It seems that moved paid off for all concerned.
However, potential drawbacks include the possibility that other employees will start to inquire about your friend’s or family member’s compensation or ownership stake in the company. Anything that smells of nepotism can cause resentment. Additionally, if there is a significant pay gap between staff and a family member or close friend and this is not immediately apparent, there may be some degree of hostility. This might then affect other areas of your life.
Commitment To help your business take off, you should surround yourself with trustworthy, diligent individuals who will go above and beyond the call of duty. What you need is someone who shares your commitment to your vision. Someone engaged and able to deliver. Employee engagement ultimately determines employee productivity. Additionally, they are more likely to work overtime and assist with additional tasks that are not paid for.
However, even if they are related to you, there is a difference between asking someone to work extra hours occasionally and counting on them to stay late at the office several evenings a week. Just as you would with any other employee, it is crucial to respect the fact that they might have obligations outside of work and to give them the time and space they require to fulfill those. Of course, having a friend or relative work for you might make you feel more comfortable asking them for more favors, but there is always a limit to how generous someone can be, especially when it comes to their own valuable time.
However, some of the other facets of business, like hierarchy, can be problematic. When working with people you know well, this can be a problem because it immediately creates a communication barrier between “you as the boss” and “them the employee.” However, this is less of a problem for many people, especially in startup environments, which by their very nature tend to be less formal and much smaller in size than established businesses.
Lastly, managing a startup typically requires a set of specialized skills, frequently in the areas of technology or business. It’s wonderful if your friends and family are knowledgeable in a particular field and are willing to occasionally lend you the benefit of their experience. But establishing an employer-employee relationship is a completely different matter that requires much more consideration.
Cons of hiring friends
The following are some drawbacks of using your friends:
Loose professional boundaries
Enforcing professional boundaries when hiring your friends can be challenging. For example, your friend might behave inappropriately while at work, break up your focused time to talk about personal matters, or take longer breaks than usual because they think you’ll let them. Setting boundaries at the beginning of their employment term will help you deal with situations like this better.
Fewer qualifications
Finding a friend who has all the qualities you want in a candidate may not be possible if you work in a specialized industry. Due to this, you may be able to find a candidate who is more suitable by conducting an outside search. Despite this, because of your interpersonal relationship and ability to teach your friends the technical skills they need to succeed, you may be able to train them more quickly.
Judgment from other employees
Being close friends with one of your employees could cause other team members to judge you. Given that your friends had to go through an interview process to obtain their position, they might be miffed by your friends’ straightforward onboarding. By enforcing fair expectations and making sure you aren’t showing your friend favoritism, you can prevent feelings of resentment.
Challenges with enforcing expectations
When employees fail to meet their objectives, it can be difficult to enforce expectations, and this task may become more difficult if the employee is a friend. You might find it difficult to intervene when your friend doesn’t carry out their responsibilities satisfactorily and to guide them toward success. It’s crucial to set expectations during onboarding to prevent misunderstandings; you might even draft a contract outlining your friend’s job duties for them to sign.
Pros of hiring friends
The following are some benefits of hiring your friends:
Streamlined hiring process
Hiring your friends can offer a streamlined onboarding process. You probably trust your friend, especially if you’re considering hiring them, so you might be able to skip laborious hiring procedures like an interview, background check, or skills test. When you’re trying to move quickly with staff hiring, this streamlined process can significantly help.
Understanding of strengths and weaknesses
It can take some time to determine a new candidate’s strengths and weaknesses when you hire them through conventional channels. In contrast, if you hired your friend, you might already be aware of the skills they have and the areas they need to work on. This can make it easier for you to determine their professional needs and give them effective, focused job training.
Higher level of trust
Trust and respect are typically elements that define friendships. You might feel more assured in your friendship’s professional relationship with this kind of personal attachment. Compared to other new hires, you might be more willing to rely on them, give them more responsibilities, and have confidence in their ability to live up to your expectations.
A deeper sense of care and commitment
Depending on your personal relationship, friends may understand why you are motivated by your work and wish you luck. As a result, compared to other coworkers, your friend may have a greater sense of responsibility or care for their work. They might be more enthusiastic about their roles and take the initiative to assist you.
Potential savings
Depending on the specifics of your case, your friends might be willing to provide their services at a reduced rate for you. For instance, if you’re the founder of a startup, a friend might offer to work for free or at a reduced rate to help you launch your company without incurring additional expenses. However, it’s crucial to treat your friends fairly when it comes to compensation expectations, just as you would with other conventional candidates, as hiring them may not always result in cost savings.
Ability to bond over your shared experience
Working together could give you a chance to strengthen your friendship. This is especially true if you don’t often get the chance to see your friend because of your busy work schedule. Sharing professional experiences, such as setbacks or victories, can reshape your friendship and help you get to know one another better than you might otherwise.
Tips for hiring friends
Here are some useful pointers to take into account when hiring your friends in order to successfully manage any potential drawbacks and maintain professionalism:
Should You Hire Your Friends? | AskNgo
FAQ
What are the advantages of hiring your friends?
- You know they are trustworthy.
- You know their strengths and weaknesses.
- You know they are loyal.
- You’ll be able to socialize with someone at work that you like.
What are some advantages and disadvantages of hiring people who are family members or friends?
- You’ll Know Their Strengths and Weaknesses. …
- You’ll Have a Level of Trust. …
- They’ll Be Invested in Your Business’s Success. …
- Managing a Friend Can Be Awkward. …
- Your Existing Employees Could Perceive it as Nepotism. …
- Acknowledging Unmet Expectations Can Be Difficult.
Is it good to hire friends?
A friend or relative can be an excellent team member if they are the best fit for the current needs of the business. Nevertheless, don’t be reluctant to hire a complete stranger. Keep in mind that even the best friends of today were once strangers to one another.
Why you should not hire friends?
Unwanted advice from family members and friends who are supporting you might begin, and it can be difficult to ignore them or to turn them off. It’s not necessary to follow their advice just because they are your friends and family, but it can be challenging to do so without fear of upsetting them.
