The Right Way to Hire and Work with Family

Hiring and/or working with family depends on how similarly your goals align with each other. In some cases, it might cause problems but if you share the same views and goals, it really shouldn't be something to avoid. In my case, I feel working with my family has been one of the best decisions I’ve made in my life. My brother Dino Selita and I work great as a team and we are both Co-founders of The Debt Relief Company in New York. We freely bounce ideas off each other and play to each other’s weaknesses and strengths. This is what makes us such a suitable team. Moreover, it’s very likely a member of your family has a much more vested interest in helping your business succeed (as opposed to a non-family employee).

I think anytime there is money involved it can be difficult to work with family but again this really depends on your relationship with the members of your family. However discussions about finances with family is important and these conversations need to happen no matter how hard they are to have. Often times, family members have a lot of history with each other, so it can be very difficult to keep things in a solely professional/business setting. Moreover, it’s much easier to get emotional with a family member that knows essentially everything about your personal life. Sibling Rivalry is also a very really dynamic that has to be accounted for. Family members may also be prone to more jealousy, etc.

Employing family members can be a significant tax benefit as when you do so you can take a deduction for compensation paid to the member of your family. You can typically avoid having to pay FICA and FUTA taxes when you an employee a family member. In turn, this can reduce the total taxable income of your business. This is also important like the habits of successful new hires.

Pros: you are promoting togetherness and unity with your family and building something “together”. You can inspire and motivate each other to be great everyday and bounce ideas off each other in an extremely candid way (something you might not be able to do with non-family members).

Cons: You see your family member every day at work! This may get daunting and can be a bit much, ultimately making you feel like you have less privacy than you would normally.

Play Off Each Other’s Strengths and Build Trust

This is by far the most important thing you can do, being able to trust and let a family member into your circle should not be taken for granted. Everyone is different, and if we allow each other to unify in regards to our strengths and weaknesses, this really will be a positive for your business in the long run.

Always Promote Creativity and Innovation

You should be doing this regardless in your business, but especially when you are working with family members. Family members will feel like they have a more vested interest in your business than most other employees, so use them as a gauge of how to model the “company culture” of your business.

The most notable family businesses (or corporations) are run by Walmart—which is 50% owned by the Dalton family and the Murdoch Family which owns approximately 40% of Fox Corporation. The most notable of these two has to be the Murdoch’s—HBO’s succession is loosely based on the family and its media enterprise. However, the Murdoch’s have had a very tumultuous ride in their rise to power and have been very prone to squabbles. So, it may not be the best gauge for “how to run a family business”. Just like how there's mistakes to avoid when lending money to friends and family there's also mistakes to avoid when hiring them.