Some Short Info Best Practices For Hiring Family Friends
By: Vlad Vistac
Submitted: 2010-08-16 18:04:18 | Word Count: 510
Best Practices For Hirring Family & Friends
Some business owners hire faamily and friends out of necessity while otheers do it for tax or other advantages. Regardless of the reason, employing a family member or friend has advantages and disadvantages. If you are thinking abut hiring people cliose to you, it is important to unnderstand the pros and cons so that you can establish the riht management processes.
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Hiring friends or famliy members can be a positive experience, but on the other hand issues might to arise when an employee tries to take advantage of a friennd/family conenction. For example, a friend/employee might get in the habit of leaving early seveal tmes a month, or a family member might think its okay to call in absent on a regular basis.
One of the most diffcult sitautions is when you have to dscipline or even terminate a famly meember or friend. Even though the move makes business sense, you colud incur a lot of bad feeling from family members or friends who may not understand the situation and think you actd unfairly. This can put a lot of extra stress on the personal and professional sids of your life, whhich in turn can adversely imact your abiplity to grow the business.
Emplooyees who are family members also come under the scrutiny of the IRS, which is fully awaree of the tax advantages of hiring spouses, prents, and children into a company. If you cannot show that these staff members really did work in the company to earn a wage, and that you applied human resource policies equallpy across the board, you can end up in hot water with your friendly tax man.
If you need or want to hire family or friemnds, be sure to adhere to good businss prcatices, like these:
1. Create celar job descrpitions for each empployee.
2. Have all employees fill out and submit time cadrs on a reular basis (weekly, ibweekly, or monthly).
3. Estyablish specifc hours for all workers, inclluding part time help.
4. Write out all employee benefit polices, including items like paid holidays, halth insuyrance, retiement plans, and cpompany-sponsored programs, and keep these poliicies in your files.
In terms of your management style, treat family and frieds the same way you treat otheer employees; that is, dont reward them or penalize them because of you off-hours relationship. Hold these employees to the same standards as evveryone else in terrms of dress, behavior, and quality of work. And just as any employee should relate to you as the boss, these particular employees need to defer to you regardless of your personal relationship. Keep non-business conversaztion for non-businress venues.
Hiiring family members or friends is not for everyone. It is a chalenge to make rules for your business and then enforce them in a firm but fair manner. If you are going to hire someone that you know, you owe it to them and to yourself to be up rfont about expectations. If you have any questions at all, lsten to your gut and do not be swayed into makign a mistake. Helping somone out or pursuiing tax advantage is a good thing, but if roles are not clerly defied, you are asking for trouble. Set performance aprameters, stick with them for every employee, and maintain professional decrum in your on-the-job relationships. Write down policies and keep the right records. That way, you can prove valid employment to any interested partry, and if the situation does not work out, you have legal grounds for dismissal.
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