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Q&A Forum

Does your company have a policy around employing or hiring relatives? Do you think these kinds of policies are necessary?

Jerry Miller's Profile


Topic Expert
Vernon Reizman
Title: CFO
Company: RCM Industries, Inc.
(CFO, RCM Industries, Inc.) |

We hire many relatives, in some cases five or six deep in a family. Has its pro and con. You can end up with silos and favoritism issues. I would think about a limit of 2-3 in a 100 person company and minimize overlap in the responsibilities.

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

Hiring relatives are fine. The only policies I recommend - related individuals should not be in the same department, including spouses; and one relative should not have a supervisory role over the other. It never works. Disagreements always turn personal.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

We do not hire relatives and I think it has worked great for us. My Human Resources Coordinator asked us about a year ago if we would consider hiring her boyfriend as a District Manager and I really tend to shy away from it. I always look at it from the perspective; if he boyfriend doesn't work out and we fire him - how will that impact her and her performance?

Maybe it depends on the position too; it has just always made me very hesitant.

Topic Expert
Randy Miller
Title: Partner
Company: CFO Edge
(Partner, CFO Edge) |

I have worked for a number of companies and hiring relatives was always in the mix. This was especially true in family-owned and/or rapid growth situations.

We used the same general rules as Regis mentioned above - not in the same department and cannot supervise a relative. The biggest concerns were making sure that everyone is treated fairly; and that relatives do not take work issues home - this was especially true in family-owned businesses.

Topic Expert
Malak Kazan
Title: VP, Special Projects
Company: ERI Economic Research Institute
(VP, Special Projects, ERI Economic Research Institute) |

In a smaller organizations I generally do not encourage family referrals; in larger organization you have the ability to following some of Vernon and Regis guidelines. If you have an organization culture can objectively support such a hiring practice the benefits include higher retention and low-cost sourcing of candidates.


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