Pros and Cons of Hiring Family and Friends for Your Design Firm

If your firm is in its infancy or a senior team member left with little notice, you might consider hiring a friend or family member to fill the gaps. Hiring family members or friends to serve in critical roles at your design firm might seem like the best decision. After all, they’re rooting for your success; you know how they communicate, and they understand your vision for the company. Plus, you can avoid the often lengthy and expensive recruitment process. But do the pros truly outweigh the cons when hiring family and friends? Will you actually save money in the long run? Are they the right person for the role? Do you risk accusations of nepotism or the development of an uncontrollable dynamic? In this post, we explore the pros and cons of hiring family and friends for your design firm.

The Pros and Cons of Hiring Family and Friends

Benefits of Hiring Family and Friends

Hiring family and friends can bring many advantages to your firm. For one, you may be able to trust them more than a stranger because of the preexisting relationship you share. They are also likely to better understand your unique vision for the company, which can help them work towards shared goals. Additionally, they might be willing to work harder and put in extra time since they feel invested in your success.

Furthermore, by hiring someone you know, you have established clear communication channels and understand their strengths and weaknesses. This can streamline the onboarding process, allowing new employees to become productive faster than an outside hire. Not only does this save you time, but it also saves you money on training and recruitment costs.

Plus, you enjoy the satisfaction of helping someone you care about. By hiring them to work for your firm, you offer professional growth and financial security to a beloved friend or family member. Let’s explore the benefits of hiring a friend or family member further below.

Pro: You Already Trust This Person

One of the advantages of hiring a family member or friend is the level of trust that comes with an established relationship. When you employ someone, you must have faith in their ability to fulfill all expectations associated with their role. You already know the person well. Thus, you probably have a better idea of their strengths and weaknesses and how they might fit into your business. 

You also believe in their support of you and your endeavors. By hiring a family member or friend, you get to work with someone who is constantly rooting for you and your success. Hopefully, this person wants you to succeed and will not neglect their role or sabotage your efforts in any way. 

Pro: You Know How to Communicate With Each Other 

Clear, reliable communication — including brutal honesty — is incredibly valuable in a professional relationship. Hiring a family member or friend means you already have an established line of communication with them. 

As Kiely Kuligowski writes in an article for Business News Daily, a family member or friend”‘ can lift you up when you need it and call you on your baloney when you need to be grounded.'” You understand their personality and can work around any flaws in their communication style. When working with a stranger, you must start from scratch. 

Pro: You Could Save Money

Hiring family and friends for your firm can be a great way to save money. For example, if you are searching for a CFO, and your spouse has an MBA with an Accounting Specialization, you might choose to hire them instead of looking for an outside candidate. This could save you money on recruitment costs, lower salary expenses, and keep more shares of the company under your family’s control. 

There might be tax savings for you, your firm, or your family member too. According to CFP Justin Goodbread in an article for Forbes, you might also be able to “maximize your retirement benefits” by hiring a spouse. They would benefit from your firm’s health and disability insurance plans as well.

Why Family and Friends Aren’t Always the Cheaper Option

However, it’s important to ensure that all rules and laws are followed when employing relatives or other people close to you. Nepotism and favoritism in the workplace can negatively impact other employees and may even be illegal in certain situations. If you have other employees, you must treat your friend or family member exactly the same, including salary and benefits. Failure to do so could result in legal and financial penalties. 

Additionally, hiring a relative or friend who is not qualified for the position could end up costing you more in the long run. If you end up firing your friend or family member because they were not the right fit for their role, you must spend the same amount or more on recruitment and onboarding. This could also lead to resentment from other employees who feel like they were passed over for someone less qualified or for those whose workflow was disrupted by the dismissal.

In order to ensure fair treatment and quality management, it’s important to follow all federal and state labor laws regarding employment. Consult your state’s rules and regulations surrounding employing relatives or friends, and review the IRS’ restrictions for spouses or adult children.

Pro: Commitment to or Emotional Investment in Your Shared Success

Theoretically, a family member or friend is emotionally invested in your success as an individual and is committed to your shared success as colleagues. Friends and family members may be more willing to go above and beyond. After all, they care about you personally and want to see your firm succeed.

Pro: Satisfaction Associated with Helping Someone You Love

Helping someone you care about — and the satisfaction that accompanies that generosity — is another advantage of hiring friends and family. They help you take your firm to the next level, and you offer professional development, a steady paycheck, and a rewarding firm culture. However, our personal investment in friends or family — and our desire to help out — can sometimes cloud our judgment.

Disadvantages of Hiring Family and Friends 

Hiring family and friends can come with its own set of drawbacks that must be carefully considered before jumping in. One major disadvantage is the potential lack of experience or qualifications for the job. Everyone wants to give a loved one a chance, but if they don’t have the necessary skills or knowledge for the role, it could negatively affect the success of your firm.

Additionally, hiring family members may lead to conflicts of interest, particularly if they hold managerial positions. This can also create resentment among other employees who feel that favoritism is being shown. In some cases, there may be legal implications associated with hiring family members, depending on state and federal laws regarding nepotism and discrimination. 

Let’s get into the disadvantages of hiring family and friends.

Con: There Could Be Hard Feelings if Salary or Benefits Expectations Aren’t Met 

When hiring family and friends, it is important to remember that they are still employees who should be treated as such. This means providing them with a clear job description, fair wage or salary, and benefits according to company policy. 

Unfortunately, there might be hard feelings if your friend or family member’s salary and benefits expectations aren’t met. Some business owners feel pressured to provide better benefits, added bonuses, and higher salaries to their relatives in order to keep them happy and motivated. 

This can strain the relationship and produce legal consequences or reputational damage if other employees are neglected. 

Con: There is Potential for Perceived or Actual Nepotism 

Another disadvantage of hiring family and friends is the potential for perceived or actual nepotism. Hiring friends or family might lead other employees to assume that favoritism is being shown towards family members. 

Perceived nepotism or cronyism will negatively impact you, the friend you hired, other team members, and general workplace morale. It can be demotivating and damaging to the morale of the entire workforce. Perceived cronyism could lead to a lack of trust between employees and management, causing resentment, mistrust, and ultimately poor performance.

Plus, whispers of cronyism could put your friend or family member in a tough spot. In her article “Nepotism in the Workplace With Friends” for The Chronicle, Christina Hamlett explains. Hamlett writes that your friend or family member might “truly [be] the best qualified in the candidate pool.” Regardless of experience and ability, she or “he enters the workplace equation under an immediate cloud of suspicion.” 

Moreover, in some cases, certain state laws make it illegal to hire relatives or partners as there might be an unfair advantage. In private partnerships, people who are related or hold close relationships may receive special treatment or benefits withheld from others who work equally hard. 

This not only undermines the quality of professional management but also brings into question the fairness and independence of decision-making by board members or you, the firm owner. 

Con: It Might Be Too Difficult to Critique, Demote, or Fire a Friend or Family Member

Whether firing for cause or letting them go due to the pressures of an economic downturn, it is typically far more difficult to professionally part ways with a friend or family member. Letting go of a loved one due to underperformance or economic pressures could create resentment, hostility, and a loss of trust. 

Constructive criticism and feedback are crucial elements for growth and success, yet giving such input to someone close might feel uncomfortable. Your preexisting relationship and complex dynamic can also make providing constructive criticism and important feedback feel awkward, unpleasant, or practically impossible. The personal relationship you share might suffer if you provide anything less than pure praise and unconditional.

You might suffer blows to your personal relationship, or your firm might suffer from your lack of action. Either way, it’s essential to consider your shared dynamic before hiring friends or family.

Con: Someone Else Might Be a Better Fit for the Role

While hiring a friend or family member may seem like a good idea, it’s important to consider whether they are truly the best fit for the role. It can be tempting to bring in someone you trust and have a personal relationship with, but ultimately the success of your firm should come first. Hiring based on personal connections rather than qualifications and experience could result in missed opportunities and lower-quality work.

As noted above, bringing on a friend or family member who other employees view as inexperienced or ill-suited to the role could create tension in the studio. This could lead to a decline in morale and productivity, as well as potential legal issues if it is perceived as discrimination.

Con: It Can Be Difficult to Reset Your Existing Dynamic

Anyone who has worked with a close friend or family member knows that there are existing relationship dynamics at play. If you hire a parent, for example, he or she might treat you like their child in your place of work. They might reject your role as their partner or boss — falling back into lifelong behaviors. Even between friends or acquaintances, power struggles can complicate and frustrate working relationships. 

In an article for Harvard Business Review, Joseph Grenny reflects on his own experience hiring one of his father’s friends. After hiring this family friend, that person took advantage of their shared relationship. He assumed a leadership role that was not assigned to him, and he broke both company policy and actual laws. When Grenny “expressed concerns, he would reassure [Grenny] in a fatherly voice that everything was fine.” If approached about illegal or unethical behavior, this person “would cajole [Grenny] about being naïve.” Eventually, Grenny fired the family friend. 

While this example is extreme, it is not unheard of. As a firm owner, you must be absolutely certain of the person’s character and skillset — or be prepared to have tough conversations — if you hire a family member or friend.

Con: You Might End Up with a Less Diverse Team 

If you only hire people you know — or the majority of your firm consists of friends and family members — you might find yourself working in an echo chamber. Hiring family and friends might limit diversity within your team since you are only seeking input from people who already think like you. This echo chamber can prevent new ideas from being introduced into your company, making it harder to compete in a rapidly changing market. 

In an article for The Conversation, Sheheryar Banuri explains. Banuri writes that “anti-discrimination laws promote diversity while prioritizing hiring friends, family or those with shared values seems to do the opposite.” In an article for Forbes, Marissa Peretz underscores Banuri’s point. Peretz notes that “If everyone comes from the same background, they might resort to ‘group think.'” Groupthink can result in missed opportunities, lack of creativity, and stagnation within your firm. 

Final Thoughts About Hiring Family Members or Friends

Hiring a friend or family member instead of someone recommended to you by an employee or recruiter is a personal choice. Like any other personal choice, it presents its own unique advantages and disadvantages. Carefully consider those pros and cons before taking the plunge. If you do choose to hire a family member or friend, take the following steps first:

• Treat Them Exactly Like Everyone Else
• Write a Job Description Before Offering Them the Role
• Ensure You Can Set and Enforce Boundaries
• Consider the Existing Dynamic and Any Associated Pitfalls
• Ask About Their Goals and Expectations
• Reconsider if You Already Have an Existing Team
• Beware Perceived or Actual Nepotism 

Still not sure what to do? Curious about what others did in your position? Wondering whether you should hire friends or family members recommended by your employees? Join our private Facebook group to ask all your burning questions.