Should I employ my Relatives in my Business?

by Ona Charles Kaobo (312 views)

A couple of years now helping Businesses work more effectively using technology, I have identified a number of common practices with my clients that aren't doing well and will like to share them with you.

 I'll take just one today. RELATIVES in decision-making positions. I have observed that too many family members in a non-family owned Business is a recipe for failure. One clear thing it shows is the unavailability of a system. It’s about the owner and whoever he trusts - in this case, a family member but it makes a lot of sense as it is easier to trust only people you are familiar with. Find below pros and cons;


1. Rest of mind, my own is in charge

2. I know you, its easier to trust you

3. I am providing the necessary support. Charity begins at home

4. In case of eventualities, we can resolve things at home

5. Lower wages/pay


1. A sense of entitlement that leads to lip service, pretense and complacency

2. Naturally you don’t put much control measures as a result of trust

3. Building your future around another person’s life. They may have their plans but won’t say so as not to hurt your feelings.

4. Disputes may cause serious family issues.

While I noticed that a number of businesses with family members are failing, I noticed some doing quite well and, in all cases, it was more about competence than blood relationship. Another important observation was the position they held. Your relative mustn’t be the manager or CEO, if someone is more competent for that position

Businesses are set up for the sole purpose of solving problems and receiving profits in exchange for value provided. Everything about it is scientific and should be approached as such. It should never be built around any individual. Take your time to create a system that checks every activity and place people in positions they deserve (blood or no blood relationship).

Do you agree? Please share your thoughts.

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