5 Pitfalls of Hiring Friends and Family

When starting a new business, entrepreneurs often look to their friends and family as their first source of employees.  Naturally, we want to hire people who we trust and those who believe in us.  Sometimes this hiring practice makes sense, but consider these potential pitfalls before you hire a close friend or family member:

Potential Pitfalls: 

1. Skills may be mismatched for the position.
2. Discipline and terminations are emotionally difficult.
3. Favoritism may cause issues with other employees.
4. Company policies may be overlooked.
5. Lack of separation from personal and business life.