Family member hiring practices

dlail

We are a family-owned business with 2 of 8 family members employed by the organization (CEO, and myself). With the third generation attaining adulthood and indicating varying levels of interest in the business, we want to create a policy for hiring family members. Any sample policies or best practices input? This addresses family members of owners only. The company is not to be the first or last result employer. We do not create positions for family members. We have allowed teens part time or summer employment in compliance with the law.

We have experience in hiring related employees and have reduced that with an unpublished practice of not hiring additional family members.

Would welcome comments. We have a meeting tomorrow afternoon and would like to craft a policy before considering any hiring.

Don D

Interesting indeed. Where are you relatively in the pecking order? The CEO of course, will probably have final say in the crafting of and ignoring of the policy. Your ideas are sound and I hope you succeed.

I don't have any particular recommendation, just wanted to congratulate you on your thinking.

dlail

Thnx, I was wondering if you'd speak up! I'm always interested in what you have to say, although I admit I don't take the time to peruse the forum as much as I'd like. . .

Actually, I have 2 months seniority . He's my brother-in-law and the only one of two family with degrees. I never finished the BusAd program. This is a concerted effort to avoid conflicts down the road and set up expectations, accountability and escape hatches. We've both worked here since 1975. I grew up on the job and started from the ground up (that means sweeping floors and cleaning bathrooms when I was a kid!).

My dad (founder) retired in '90 and died in '94. We have worked extremely hard to professionalize the business over the last 30 years to become a local preferred employer and a business owned by a family, rather than a family business.

ray a

We are not a family owned business, but relatively small and very family oriented. Many of the top execs have employed family members - spouses, kids, siblings and parents. No formal policy, but even the execs family members are treated the same as anyone else. One had a child who failed a random drug test - terminated per policy. Some have been terminated for various reasons, attendance, insubordination, etc. Hiring family members has filtered down through the ranks so it happens at all levels. I always tell newly hired family members that their relative helped them get in the door, but whether they stay or not is completely up to them.

System

I know where you're coming from, dlail. Our five-person department included a brother and sister until the sister went on maternity leave and was temporarily replaced by her cousin. And their sister-in-law works down the hall. But we don't allow anyone to supervise a relative, and there hasn't been any problems.

There's a brief sample policy on Employment of Relatives in the Subscribers Area of this website.

In case you haven't been there before, click on the blue Login box at the top of this page. After you log in, scroll down to "HR Tools" and click on "Sample Policies & Procedures."

Subscribers Area help:
[url]http://www.hrhero.com/help/subscribers.shtml[/url]

Good luck to you and all your kin. x:D

James Sokolowski
HRhero.com

dlail

Well, over the years, we have had 3 sets of husbands/wives; a mom with her two daughters, sister, niece; a woman and her niece; It's a small town. When we had to term the one mom and one daughter (big issue-same dept), the other daughter worked in another dept and stayed six months, but quit under pressure from HER family. but in a small town w/ close family, when one leaves for a family emergency, it means the other goes too. We still have a husband/wife, but one does not supervise the other.

And, here's one for ya, I met/married a co-worker. We are now divorced, but we both still work here - amicably - talk about setting an example!!

Don D

Additionally, if the people at the top are 'strong' enough to make it stick, it might be a good thing to have a published policy statement like this: "Persons related to company management by blood or marriage are allowed to work here for a maximum of twelve months. That includes summer jobs, part time work after school and perhaps your first job after college graduation. This is discretionary with management. Working here in an entry position will give you good experience for your resume and beyond that, you're on your own."

mstechphr

Our policy is very short but gets the job done: It states simply that we may hire relatives of current employees. However, it is our position to not employ relatives within the same department if at all possible, or to have an employee/relative reporting to another relative.

ScorpioHR

However, it is our position to not employ relatives within the same department if at all possible, or to have an employee/relative reporting to another relative.

Ditto th-up
I made the mistake two months ago of hiring the daughter of one of my ee-They were in separate facilities ( I figured I was safe) they had different direct reports(I figured I was safe)...I was way wrong-This woman harrassed her daughter to the point where the girl came in and quit voluntarily-Nothing happened at work, it all happened after work hours. I doubt I will go there again x:'(

Don D

If they didn't work together and argue away from the job, how will quitting the job make things different for her?

ScorpioHR

Go figure - Best I could tell her Mom was harrassing her at home about things she had been told the daughter was doing by other employee's. As for:
how will quitting the job make things different for her?
Guess the other employee's can no longer tell the Mom anything-the daughter no longer works here! Now they can go on to argue about something else I guess:DD

KathiHR

We are as you described - a business that is family owned. The majority stock holders are 2 brother-in-laws (one of them is my husband). Our policy is unwritten, but never-the-less, strictly enforced, and has developed over the years in response to problems, and our attempt to professionalize our workplace. They are:

1) No family members as direct reports.
2) Person hired must go through same hiring
process and be qualified for the job. Direct
supervisor has the say on whether to hire
them.
3) Salaries are based on the established ranges
and are the same for family members as others
similarly qualified.
4) Policies & procedures are equally
enforced.
5) No loans, draws, advances, etc. for family
members, since its not allowed for other
employees.
6) No special favors - they work the
hours/shifts that their supervisor expects.
They ask for vacations through their direct
supervisor. They handle problems with their
supervisor. They can be fired by their
supervisor.

The problem we had with "giving jobs" was that it filtered through the organization, not just the owner's families. It created some departments of unqualified people - not throughout, but in sporatic places.

As we've enforced these, we've gotten less & less family members expecting us to to "give me a job", primarily because they know they have to be qualified. We've got less & less managers wanting to hire friends. And as we've stood by these policies, it has created confidence in the non-family workforce that we are serious. Morale has improved over the years. I can't even begin, in this post, to describe all the problems that were solved with these policies. You're on the right track.

dlail

Thanx for your "1st person" input. What you are telling me is consistent with what's going on in our minds. We also have had employees want to hire people they knew, until they had to manage those same people. Then they decided it was better to NOT hire friends. The trouble is,is that how you know a person socially is not always a clear indicator of what type of worker they are. I remember knowing a woman who seemed to work her _ss off - until I realized she drove everyone nuts cuz she had to handle everything herself and didn't share knowledge . . .

Whatever

There are actually two issues - family members who are also owners and family members who are just employees. I, also, am an owner family member (work with my brother & sister). Third generation. My kids have also worked here during the summers. They got the same business lecture my siblings got, my father got etc. Briefly, you are not going to be treated differently than anyone else. Then, the same guilt trip lecture (the one that starts out " You are a representative of this family. etc. etc. sigh, sigh sigh). It's the only way a business can work.

dlail

Whatever - are we long-lost sibs or are the lectures reproducable and available to family businesses at large (lol)

Whatever

Try e-bay (everything seems to be available there including the Brooklyn Bridge). I just had the strangest thought...I wonder if John Gotti ever gave these lectures to his kids.

Don D

I'm sure he gave them offers they couldn't refuse.