Employing Family Members in Your Small Business

Business Strategy

Simisola wanted to make running her juice company, “Orangeberry”, easy. She was expanding quickly, demand was great, and revenues were strong and consistent. Her cousin Ade just resigned from his Job in Ibadan and wanted an opportunity in a bigger City like Abuja. During her visit for the Easter holidays, her aunt and mother convinced her to go back to Abuja with Ade and let him work in her company as her general manager.

Simi was trying to build and fix her structure and needed someone to manage the supervisors. While she and Ade were cordial, she didn’t know much about his work. Being a Family member, she didn’t put him through her rigorous employment process. She went by the word of their aunt and Mum and worked based on their existing relationship.

Ade hadn’t worked for more than 2 months when issues with employee relations started to arise. He was abrasive with the staff, rude with her, and not very good at being accountable. After a financial audit, she realised she was overpaying for stocking inventory.

Without her approval, Ade had renegotiated terms with her suppliers and given contrary orders. The damage was so extensive that she had to fire him and come in herself to fix all the issues while dealing with the backlash within her family, which she had hoped to avoid when she agreed to employ Ade in the first place.

The Family Factor in Business

Running a small business is no easy thing, and the idea of bringing family members on board can seem like a great way to strengthen your team. However, employing family comes with its own set of challenges and considerations. Here are some important points to keep in mind if you’re thinking about hiring a relative.

Assess Their Willingness to Work

First and foremost, consider who this family member is and how willing they are to work. Do they have the skills and work ethic needed to contribute positively to your business? Enthusiasm and a genuine interest in the role are crucial. The last thing you want is to bring someone on board who is not fully committed to the success of the business. If they are willing, however? What is driving their willingness?

Evaluate the Stage of Your Business

Think about the current stage of your business. Is it in its infancy, or is it well-established? Bringing a family member into a start-up environment can be risky due to the high stakes and potential for rapid change. On the other hand, a more mature business might offer a stable environment where a family member can integrate more smoothly. In our example, Orangeberry was at a crucial stage of scaling up. Handing over the business to someone you don’t know and who doesn’t know the processes that drive your decisions can lead to decisions that can slow your growth at best or bankrupt your business at worst.

Maintain a Degree of Separation

It’s essential to maintain a degree of separation between you and the family member in the workplace. This can help ensure that personal relationships don’t interfere with professional responsibilities. Consider having them report to someone else within the company to help set clear boundaries and reduce potential favouritism or bias.

Monitoring and Boundaries

It’s necessary to monitor what you expose to the family member about the business. Maintain the separation of church and state; this isn’t a family business, it’s your business. Ensure that the family member adheres to the established processes and structures. If they can’t or won’t follow these, be prepared to let them go. This helps maintain the integrity and professionalism of your business.

Trial Basis Employment and Clear Reporting Lines

Try out your family member on a trial basis first. This allows both parties to see if the arrangement works without making a long-term commitment. It also allows you to evaluate their performance and fit within the team. Have the family member report to someone other than yourself, and establish clear boundaries from the outset. Clearly defined roles and responsibilities can help prevent misunderstandings and ensure that everyone knows what is expected of them.

Constant Monitoring

Monitor, monitor, monitor. Keep an eye on their performance and behaviour within the business. Regular check-ins can help address any issues early on and ensure that they are meeting the necessary standards.

Hiring relatives can be a blessing if done right or a burden if handled poorly. Every business owner should weigh the trust and shared commitment against the risks of bias and conflict.

If you choose to employ family, build strong structures, set clear expectations, and keep professionalism at the heart of your decision. That way, your business can enjoy the loyalty of family without the drama of family feuds.

Tag Post :
Share This :

Leave a Reply

Your email address will not be published. Required fields are marked *