Family Matters: What to Know About Hiring Adult Children into the Business
One of the benefits of running your own business is you can hire family members—and when they are your own children, you have the advantage of familiarity and trust. Plus, in many cases, your children have grown up around the business and understand its objectives and operations.
Of course, your adult children are loyal to you and the business. They’re invested in the company’s long-term success, as they inherently have a stake in its future. In many cases, hiring and training your children within the business is part of a broader succession plan, ensuring continuity in leadership and management as the company grows.
However, it’s crucial to approach hiring family members with caution and professionalism. You should clearly define roles, responsibilities, and expectations, and your children should understand they are part of a team—and what that involves.
The Biggest Issue: Perceptions of Favoritism
The most significant challenge when hiring your children is the potential perception of favoritism among other employees. My two oldest kids work at CorpNet, and my biggest challenge was not to favor them over other employees—something that typically leads to resentment and a dysfunctional workplace. After hiring your kids, making decisions based on merit and not family connections is critical. It may be a hard lesson for your children, but it’s essential to establish that upfront before trouble arises.
Here's what I’ve learned:
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Role of Supervision and Evaluation
Who wants to supervise their own children? Not me! I strongly advise you to have family members supervised by team leads or managers who are not their parents. This helps maintain objectivity in performance evaluations and daily management.
In addition, performance evaluations should also be handled by team leaders (and not the parents). Reviews should be based on the standards applied to all employees, ensuring fair assessment and opportunities for development.
Creating an Inclusive Work Environment
Finally, creating an inclusive work environment where every employee feels valued is essential. Ensure every employee (family or not) feels the company supports open communication and equal opportunities for growth and advancement.
While hiring your adult children can offer valuable opportunities, it also presents unique challenges that must be carefully considered. To maintain a healthy, productive work environment, ensure you uphold principles of fairness and professionalism.
One More Thing
I would be remiss if I didn’t address the entity’s responsibilities of hiring your children at your business.
CEO at Universal Registered Agents, Inc. | Strategic Leader | Innovator in Corporate Services
7moGreat read, definitely relate to this.
CPA at Feddersen & Company, LLP
7moGood read. I can relate!