Should you hire relatives or friends?

Do not hire friends/relatives

A business tip from the book “Business Management Simplified” Author: Sanjay Shah (SME Business Coach)

I think we should not hire friends/relatives

  • I call this “Ration card employment.” It is advisable to desist from this practice.
  • The main reason is that bringing some friend/relative or their children in the team skews the balance of the team in a very weird way.
  • It curtails our freedom to deal with the individual at par with others, which creates a lot of unrest among the other employees.
  • There is always a conflict between the relative importance to be attached to the relationship or the job.
  • It is also observed that in the end, such an assignment ends bitterly or in the end, either the work or the relationship suffers.
  • Hiring of any person must be done only on merit.
  • If some relative or friend asks us to “do a favor” by hiring somebody known to them, you should politely tell them that you can only arrange for an interview and the selection will be based on merit only. This may offend that relative or friend, but if you can’t say no, then you may have to hire an unsuitable or incompetent person and your business will suffer for a long time.
  • Remember, you should keep charity and business separate. Hoarding incompetent people only because they know you or some of your friend/relative, sends a signal about your own weakness and lack of clarity.
  • Also, if a person is good and competent, he/she will not need any recommendation only.

(Excerpt from “Business Management Simplified”)

Author: Sanjay Shah

Sanjay is the author of "Business Management Simplified" which provides Practical, Actionable Solutions for Entrepreneurs. It is an all-in-one guidebook to start, run and grow a small and mid-size business to the next level. He is also an SME Business Coach, Seminar Leader and Motivational/Keynote speaker, Sanjay is based in Mumbai (India). He advises many businesses on Strategy, Leadership, Marketing, Branding, Customer Experience Management and Organization Development. He conducts various self-help seminars and workshops for companies and groups in English, Hindi and Gujarati. For more info, visit :

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