Employing Family Members

[GuestHouse]

This question springs from Soundman's 'What Would You Do?' thread.

Much of the advice given there about crooked employees and the actions people have taken or advise taking would cause real strife if an employee is a member of your family (extended as it may be).

So this raises a whole bunch of questions:

Do you employ family members?

If so how has that worked out (Pros and Cons)?

How do you discipline a family member who is not performing?

How do you reward a non family member over a family member?

How to you aportion profits when family members are employees?

If you don't want to employ family members, how do you go about getting that agreed?

[soundman]

This question springs from Soundman's 'What Would You Do?' thread.

Much of the advice given there about crooked employees and the actions people have taken or advise taking would cause real strife if an employee is a member of your family (extended as it may be).

So this raises a whole bunch of questions:

Do you employ family members?

If so how has that worked out (Pros and Cons)?

How do you discipline a family member who is not performing?

How do you reward a non family member over a family member?

How to you aportion profits when family members are employees?

If you don't want to employ family members, how do you go about getting that agreed?

Being involved in business with family members is stressful enough. Employing them in a boss / subordinate relationship would be a nightmare.

So what are the pros & cons?

Pro - You can trust your family member

Con - They will "borrow" from the till whenever they feel the need.

Pro - Family will look out for your business interests.

Con - Family will make their interests part of your business.

Ahhghhh. - A few years ago one of my uncles wanted me to employ his son who had a track record of nightclubbing, deliquency & general laziness. My uncles thought's were that I could have his son help in the business & that I might be able to straighten the young buck out. I told him that while I wanted to help him out, i just could not.

He asked why. I reminded my uncle that if his son didn't change his ways whilst working for me, that I would have to sack his son or face a mutiny in the factory, from the other staff for preferential treatment of a particular staff member. Everybody in the family would be pissed off with me, & it was better not to let the situation even start lest it get out of control.

The subject was, thankfully, left there.

Cheers,

Soundman.

[peter991]

Wise decision, soundman. It's a tough call - I have pressure on me to employ family and friends - but I have always resisted. For the same reasons.

Peter

[Chang_paarp]

I have employed family members as well as my now ex-wife.

My family was honest and did not help them selves to the till, my then wife on the other hand did feel it was her right, even after she threw me out.

In one business I hired and trained my young cousin so I could have a day off. Up till that time I was working 7 days a week. He was a young lad who did not have a lot of direction, I introduced him to goal setting and he developed some goals and started working towards them. His mother was almost shocked when she found some goal setting exercise sheets (hidden in the porn) in his room when cleaning one day. I was blamed for that.

Whenever I hire a family member I explain I expect more from them as they are family. I give them trust, and woe betide them if they betray it.

So my experiences are positive, except for the wife. They only time the till did not balance was when she visited. So it is a person thing.

I would employ a relative again, if they were the right person for the job. The advantage is that you normally have an idea of their nature and the events that may cause a change in their behaviour. Having to get rid of a relative would be a potential nightmare, especially if they were seen as a victim in the way of things.

Simon47(?) who has a hotel in Phuket has a cadre of his outlaws working for him. He is finding it can be difficult, it is a difference of what he expects and what they are delivering, so it may not be that they are family, it could be communication or the people involved.

[simon43]

Well, not quite a cadre!

To date, everyone who has worked at my hotel have been close family members. Some of these people worked for me before in BKK. In the majority of cases, there have been no problems at all. With some staff, there have been issues which were dealt with by my wife. She either warned them, deducted salary or sent them back to the village!

I do have an issue regarding standards of work in some areas. That's because this is a hotel and most customers are 'western' and expect western standards of cleanliness etc. So there is some education/training needed, (these are family staff who have not worked in the hospitality sector before).

Now that my wife is no longer staying at the hotel, I do need to get experienced staff to help out. That's all in hand.

Simon

[Smithson]

I've had bad experiences with family members. In LOS you'll see families where one sibling works hard and another expects money from them. This situation becomes worse when family members start working. With Thai/Chinese families it might be better because they're more business orientated.

Employees appreciate things, they don't think the automatically have a right to it, which can be the case with family members.

[Kananga]

This question springs from Soundman's 'What Would You Do?' thread.

Much of the advice given there about crooked employees and the actions people have taken or advise taking would cause real strife if an employee is a member of your family (extended as it may be).

So this raises a whole bunch of questions:

Do you employ family members?

If so how has that worked out (Pros and Cons)?

How do you discipline a family member who is not performing?

How do you reward a non family member over a family member?

How to you aportion profits when family members are employees?

If you don't want to employ family members, how do you go about getting that agreed?

Family are family and business is business, the same way that adults are adults and children are children.

If a family member behaves like an adult and is capable of doing the work then hire them.

If not, then don't. As for discipline and reward, you should treat all employees the same or you are starting the beginning of the end. If a family member thinks they should get preferential treatment or are above repremand then show them the door. Never let your business suffer. As for profits, only you can answer that. Personally I would leave the profit for the business owners and to reinvest.

[LoveDaBlues]

It's worked out great so far. I invest the money, the family does the labor, they spend all the profits. I invest more money, ......etc. etc.