Does hiring a family members determine the success of a business ?

[Sotherefore]

When establishing a business , sometimes we may employ different set of people into our business organisation to perform different roles in the business which obviously will help in the progress and development of the business organisation.

A lot of business owners are always sceptical about the type of people they are employing into their business because they do not want to make the mistake of employing people that are not likely to help in the progress of the business organisation.

Actually there are some people who are not coming into our business organisation to help in the progress of a business but they are just coming there for the main purpose of cheating engaging in dubious activities which all business owner always try to avoid.

In the cause of avoiding this a lot of business owners are now concentrating to employed their family members and friends into the business organisation believing that since these people are their friends and close relative that the of them carrying out illegal and dubious activities in the business will be lowered.

So does it really mean that if you are employing your families or close friends into your business organisation , will this limit the chance of business failure and help in the progress of the business ?

 

[eldavis]

No it does not, what matters is who you are hiring, do they have the qualifications and do you trust them? I have seen cases where family members where employed in a business and in the end they caused the downfall of the business. In other cases, I have seen family members make the best employees within the company, making sure the company succeeds. Having a family member as an employee has it's advantages and disadvantages.

 

[Jasz]

There are many opinions on whether or not hiring family members is a good idea for a business. It can be very beneficial in certain situations, but also cause problems in others. There is no clear answer to this question as every situation is different.

Does hiring a family members determine the success of a business?

For me the answer is yes an a very high no, if there is anything like that. As advantageous as it might be, some family members might try to take more than the company may take, especially if they made no tangible investment. They can also be bossy to other non-family workers and this might be a problem in the work place. You can hire family members but you have to be wise about it, so you avoid these problems.

A recent study by the American Psychological Association has found that businesses whose owners hire relatives do not see an increase in productivity or profit. In fact, these businesses were found to be less profitable and more likely to go under.

Instead of hiring a relative, companies should focus on their business's value proposition, competitive advantage, and growth potential if they want to succeed.

 

[Moni]

This is something little confusion. To establish business is something that is not easy. But you can not also watch your family member to walk and hustle on the street while you own a company or business.

What do you think people will even say about you? But if you don't also take care, some family members are success breakers and immediately they come into the business, boom! Everything will fall and what can you do? Arrest him or her? You own brother or sister? So is something you have to be careful as a businessman.

Just know the kind of family member that you will employ or hire.

 

[Kingsley]

To me business does not grow on sentiments, I have heard this saying over and over again that there is no friend or family in business . And over time I have always find this statement to be true. The implications of that statement is that we shouldn't consider family ties or friendship when making business decisions, if we do introduce that into our business decision making process we may end up making a very poor business decisions as a result of that.

Business decisions should be informed based on the current realities and based on competence. Nepotism should not be the foundation of our decision making process else will may end up regreting our decisions. I have seen situations where some people made their family relates the head of management body in their business venture and things went smoothly only because those people were truly serious and dedicated.

And I have also seen where people handed over their business ventures over to their family members who truly lacks the technical know how on how to even manage a family let alone a major business organization. And within a short space of time they ran the business to the ground, so what matters in making a choice as to who will manage the business should be based on competency.

 

[moonchild]

Personally, I think it's subjective, I can hire my relatives to my business based on merit alone and nothing more, I can't hire anybody just because they're my relative.

They have to prove that they're worth hiring, the reason of that is to do away with favoritism and any emotional manipulation because they may thought because we're family they can do what they like without any punishment.

Many businesses have gone down the drain because of this issue and on the flip side there are a lot of businesses that went on to become billion dollar success as a family enterprise, this is because they operated based on merit alone, they only hire a family member because they have what it takes, if this is obeyed then I don't think there's any problem with that.

For reference purposes, Africa's richest man is running a family business which stems from his grandparents, so yeah its possible.

 

[Caramelle]

Hiring your own family members will not ensure success for a business. There are other factors that may influence the success of a business like its ability to maximize its resources, the soundness of its business plan, and the methods it uses to achieve its objectives. Provided that the relatives were hired based on merits and capabilities, they may be able to contribute meaningfully to the attainment of the company's goals. However, if they were hired on the basis of being relatives and nothing more, their performance will likely not harmonize with the company's vision and mission.

Whether the company hires relatives or non-relatives for positions or jobs, it must have an internal control system that will help prevent abuses and misuse of company assets. It must implement proper segregation of duties to avoid a situation where one person can undermine the controls and manipulate records to cover up misdeeds. This is particularly important in areas of cash custodianship and recording of transactions. The person who holds the cash should not be the same person who will record cash transactions and reconcile the cash account. In very small companies where this is not possible, the owner has to be actively and consistently involved in its operations to dissuade fraudulent activities by employees.​

 

[cmoneyspinner]

Hiring someone who is trustworthy determines the success of your business. There are many celebrities who hired their relatives. Celene Dion. Johnny Mathis. Madonna. There are also some celebrities who got screwed over by the relatives that they hired because they trusted them. Family, for some, can be the deciding factor, because some people know they can trust their family. But sometimes family are the worse people to do business with.

 

[Alexandoy]

Hiring a family member of relative is the ideal setup in Chinese families. They have the full trust in their family and relatives that they have the confidence that the business will prosper if those people in their family circle will be working for them. However, I think they are mostly correct because most of the successful big business are family-oriented. But in reality in our culture, nepotism is frowned upon mainly because you should not be too trusting with your family and relatives. For a business owner you should be the one in charge. You can only have full trust in your child if you think he will inherit the business eventually. In that case you have to give your child a chance to handle the business in order to learn the ropes. When you finally retire at least your child will be able to handle the business properly.

 

[Abigael]

I don't think that the best way to avoid bad behavior among employees is to hire your family members and friends. Those too could be having their bad behaviours and so you will still experience the same loss. I think what it important is to check everyone's character and jusfge them for who they really are, not because they are family.

If you have family members and friends who are qualified for the job and having good character traits, then by all means hire them. Just avoid hiring people just for the sake of being family or friends, they might end up failing your business.

The problem with hiring family and friends just for the sake of it is that the friendship and familiarity you have may make it really difficult for you to be strict with them. Sometimes they won't even take you seriously. If this is the case, gather up all courage and say no to them.

In conclusion, never feel guilty or fearful for hiring people who are not your friends or family. Remember that your priority is to hire someone who has the skills you need and the character traits that are virtuous. If family and friends have your priority, hire them. If they don't, look for other people.

 

[Kendy]

Hiring family members does not determine the success of a business. There is a big difference between engaging in family business and employing family members to run your personal business. One of the reason some business owners employ their family members is due to compromise from internal forces and this step could either boost or ruin their business line as the case may be. Some entrepreneurs would prefer not to involve their family members in relation to their business because of the foreshadow that it might bring decline to the business. Employing family members to a business is a game of choice and these choices would be determinant on how well or low the growth of the business would become.

On my part, I would not suggest or recommend employing family members to a personal business, this is because in most cases, family members and acquaintances are always the factor that causes decline in a business. It is unfortunate that at times, just to please the demands of family members, a business owner would either sell his products on credit or even give out the products for free and this in one way or the other has the capacity to dwindle the business gradually.

 

[funmi]

So many people have lose the valuables and money as a result of making the mistake of trusting their relative with their business. I have this uncle who works abroad as a lecturer and he has been there for somany years so there was this particular year that he decided to get into a side business , so he decided to go into the sales of cars, so he started cars importation into the country. And his business was doing very well and he realised a lot of profit from the business. At some point it became a very huge stress for him combining the business and work so he decided to get one of his younger brother involved in the business and he taught him every single techniques that was involved in the business. So my uncle started sending the cars to him here back home for him to sell it here and remit the money back to my uncle abroad. My uncle kept on sending cars but he was not getting the cash returns, because his brother claims there was no sales unknown to my uncle he had sold the cars and used the proceeds for his own personal use.

Hence I will say there is no friendship or family in business.

 

[Chibson]

Employing a family member your business does not guarantee success or failure but what matters is your level of knowledge and understanding of how to run a business successfully. Even though the main reason a lot of people employ their family members into their business it is because of trust. The truth that if you emloy a family member in a particular business there is the chance that that particular family member will try as much as possible to make the business successful. Another possible reason is that he or she will take the business as his own and therefore try as much as possible to run it for it to be successful. The same thing may not be the case for some people because there are people that do not have proper business knowledge. If I want to start a business, of course I will like to employ a family member but on the second thought if I don't see anyone that have proper knowledge and understanding of how to run a business successfully in my family then it is better I employ people from outside. Sometimes, some people have the notion that if they employ their family members such people will not take the business seriously but of course sometimes the reverse is definitely the case. what matters is not whether he or she is your family member but the kind of knowledge they have.