Management Clinic: Nixing nepotism

When thinking of keeping things in the family, always remember that employing family members is no different from employing anyone else: you still have to adhere to employment legislation and treat them no differently from other employees.

You do not want to be anywhere near a situation in which a husband and wife work together and then the wife sacks the husband's secretary for having an affair with him. This can escalate if the husband reinstates her: the workplace suddenly becomes a difficult place for all employees concerned. Leaving aside the potential for the workplace to become involved in a messy relationship breakdown, there are less apocalyptic difficulties that can occur.

There is a common misconception that family members will pull together but that is not always the case. Think carefully before promoting family members to management because placing one family member in a senior position over another, especially if they are siblings, can be troublesome. Sibling rivalry is rarely a pretty sight and it is not something you want played out at work.

The main problem with family members working together, particularly where one is senior to another, is that they might be treated differently due to the family relationship. There is always the risk that they will be treated more leniently than they should be because they are family or, conversely, are treated more harshly in order to overcompensate for any family relationship.

Family members can have difficulties in adapting to a change in the dynamics of a relationship, with parents having difficulty in treating their children as colleagues and adults. It can be very difficult for people to adapt to taking instructions from someone who they see as a junior, particularly if they can remember what they were like when they were five years old.

It can be just as hard for a family member to adapt to a position of responsibility over their relatives, especially if it involves putting a sibling, parent or child through disciplinary or capability procedures. Family members are vulnerable to accusations that they have only gained or kept their position because they are family. Among non-related employees, there can be reluctance to raise issues of concern about the behaviour or performance of the owner's family because of a belief that ranks will be closed to protect family members.

One of the most overlooked problems can occur when there is a family holiday or event, such as a wedding, a time when a fair chunk of the workforce can be lost. Ensure you have sufficient staff numbers to make sure that your business continues to operate normally. Hiring family members can be a positive step for a company but it is a step that should be taken with your eyes wide open to the possible pitfalls along the way.

Always remember not to show bias towards family members. Disgruntled staff can use bias as an example if they decide to take you to employment tribunal because they feel discriminated against

By Peter Done, managing director, Peninsula