Employing family members

There can be risks to a business if it employs family members.

Challenges that can arise when employing family members

Alienation

Non-family members may feel alienated or excluded.

Missing out on experienced staff

Failure to recruit and retain experienced outsiders who could contribute effectively to the business.The failure of business plans if senior management does not possess the right skills and experience

Discrimination claims

Claims of discrimination against non-family members - see how to prevent discrimination and value diversity.

Poor succession planning

Succession planning is not being adequately managed if non-family members or interests are excluded or inappropriate family members or interests are automatically included - see succession planning and business transfer.

Stifle innovation

If you don't recruit from a diverse pool of talent you are minimising the opportunities for innovative growth in your business. A diverse range of employees can bring many benefits such as new ideas, different approaches to problems, and more efficient ways of working.

Wasting resources

Wasting money by paying a family member to do a job they are not suitable for and/or by giving them an undeserved promotion or pay raise - see staff pay and benefits for family members.

Not separating family and business issues

Domestic issues are being brought into the workplace, preventing effective communication on business matters.

Workplace bullying

Bullying or harassment of other staff by family members - see preventing bullying and harassment.

Minimising risks when employing family members

To avoid the employment of family members creating problems in the workplace, you should:

• apply any appraisal system or other company policies and procedures equally to all staff - see managing staff performance
• have senior positions held by a mixture of both family and non-family members
• make sure that you do not give family members preferential treatment in relation to, for example, promotion or pay, as this may give rise to potential discrimination complaints

Remember that if you don't require family members to bring outside experience to your business, you cannot reasonably expect non-family members to do so.