Cyber Week Sale! 50% Off All Access

4 Ways to Manage Working Relationships With Toxic Family Members Strategies for dealing with family employees who've become too much to bear.

By Gwen Moran Edited by Frances Dodds

Opinions expressed by Entrepreneur contributors are their own.

When it's time to hire a new employee, especially early on, many business owners turn to family members. And while hiring a sister, uncle, nephew or other family member can be a great way to grow the business while providing a job for a family member, there are times when hiring a bad apple off the family tree can actually hurt your company. From slacking off to abusing his or her power because of a shared bloodline with the boss, the bad behavior of family employees can grate on other staffers and hurt morale.

"If you don't have a good plan for hiring family members and dealing with problems when they arise, you're going to have issues," says Mike LaRosa, founder of Wayfarer Advisory Group, a family business consultancy based in Fairfax, Va. LaRose offers several strategies for dealing with toxic family members.

1. Start with a job description.
Too many times, a business owner will bring a family member onboard without a clear vision of what that person will be doing. That leads to confusion and frustration on both parts, LaRosa says. Whether you're hiring for a new position or already have your relative onboard, sit down and create a clear job description that includes tasks, performance expectations, and how that person's progress will be measured. This gives each side a clear understanding of what is expected, he says.

2. Address concerns.
Don't dodge issues because you're concerned about conflict. If you have a problem with your family employee, it's important to address it just as you would with any other employee. Failure to do so may leave the rest of your staff feeling like your kin get preferential treatment. That could damage your credibility and leave employees feeling like the workplace is unfair, LaRosa says.

"You have to find ways to be able to calmly address your concerns without bringing the family connection and baggage into it. That could mean actually saying, 'I'm speaking to you as your boss now and not your brother or,'" for example, he says.

Related: Is It Possible to Run a Business With Your Ex?

3. Use a third party.
If it's possible, have a non-relative employee who supervises the difficult family member. That may provide a useful buffer while showing your problem family employee that there is a hierarchy in the company that must be respected. In some cases, LaRosa says using an outside board member or consultant who is not related to the family can provide an objective voice to mitigate problems.

4. Fire when necessary.
Sometimes, family employees just don't work out. If you've tried to address the situation and it's just not improving, don't keep holding on because the person is a family member, LaRosa says. It's best if you can discuss your expectations and the consequences of not meeting them before the family employee is hired. However, if that's not possible, find a private place and explain your decision, making sure to state that it's a decision for the business and that you don't want it to affect your personal relationship.

"If your family member has been warned repeatedly and isn't improving, there's probably something going on there. You might be surprised to find that they actually want to leave the business, but don't want to disappoint you," he says.

Related: Mother-Daughter Business-Owners Share How to Balance Their Relationship and Company

Gwen Moran

Writer and Author, Specializing in Business and Finance

GWEN MORAN is a freelance writer and co-author of The Complete Idiot's Guide to Business Plans (Alpha, 2010).

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

'I Just Hustled': She Earned More Than $300,000 Wrapping Gifts Last Year — and It All Started With a Side Hustle

When Michelle Hensley lost her husband to cancer, she needed to figure out how to earn an income for her family.

Starting a Business

How to Start a Freight Brokerage Business

Get your entrepreneurial destiny really moving by becoming a broker--matching shippers and transportation servicess--for the freight industry.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Solutions

Build Professional Websites Without Coding or Paying More Than Once

Create stunning WordPress sites easily with MaxiBlocks — a cost-effective alternative to expensive website builders like Wix and Squarespace.

Business News

Google CEO Sundar Pichai Says 'You'll Be Surprised' By How Google Search Changes Next Year

AI has already changed the look of search, but Google's CEO says there are more changes to come.