Is It Ever a Good Idea to Hire a Friend?

Small Business HireThe time has finally come. You have put in the legwork, the late nights, the money, the research and your small business is finally taking off. What started out as a laptop and desk in your spare room became something that requires office space and maybe even a warehouse for products to be sold and stored. Furthermore, you now need help. You are expanding, meeting consumer orders, packaging and shipping, and handling finances, but it has taken its toll. The next step in taking your business further and continuing to grow is hiring employees.

Instead of trying to handle everything yourself, you need to divvy up the tasks and have more hands on deck to make sure your consumers are getting what they need. You might actually be looking to act more as a supervisor and take a step back and let someone else manage your business day-to-day.

So where exactly do you start when it comes to putting your small business in another’s hands?

You most certainly want someone you can trust and someone you believe to be loyal to your business’s ideas and vision. Also, you definitely want someone you can relate to and have chemistry with to make the work you will have to do together feel a little less like work.

It is not easy to find those traits and characteristics in someone off the street, making the choice to hire a friend at the forefront of your mind. But as a small business owner, is it really a good idea to hire a friend?

It is a question that has been around for centuries and debated just as long. To this day there is no definitive or correct answer — it will most likely turn out good or bad based on your relationship. As a small business owner, it is necessary to look at the pros and cons of hiring a friend before jumping into it, as there are a handful of things to take into consideration.

An article from Business Know-How highlights a few major considerations, especially when a friend approaches you looking for work. While it may be a friend looking for a job and source of income, you still need to treat them like any other hire. You will want to consider their skill set in relation to the job, their work ethic, prior experience and any potential long-term effect it can have on your relationship.

That is the easy part. If you do not feel your friend can meet the demands of the position or even your own expectations then the simple answer is: do not hire them. If they do qualify, however, then you need to further analyze the pros and cons.

A few pros were already mentioned earlier and to reiterate: hiring a friend most likely means you already have a developed trust and agree for the most part on important work-related ideas and visions. You also already have a friendly relationship that can make working together easier and enjoyable. Furthermore, you know their reliability and if they will be able to do what needs to be done in the time required. This means you can always look to them when things get tough or you need something important to be done.

As it turns out, all of those pros can quickly turn into cons. For instance, while working with a friend can be enjoyable and relaxed, it can also lead to “goofing off.” It might end up taking longer to get a project done because of time wasted just enjoying each other’s company. Along the same lines, if you have hired a friend for your small business and they are not living up to your expectation, it will be difficult to reprimand them. On one hand, you do not want to hurt their feelings or damage your personal relationship, but on the other, you need to be the boss and get them to do their job as it needs to be done.

Other potential issues that will most likely arise can stem from money. You might feel a pressure to pay your friend more than another employee simply because they are your friend. Your friend might feel entitled to higher pay or find it easier to request pay raises for the same reason.

This can also lead to more disdain from other employees you might have. They might feel you are favoring your friend over them (even if you are not) just because of your relationship outside of work. It will also make it difficult to promote your friend over another employee or vice versa because the other employee might feel the promotion went to your friend out of favoritism. If your friend did not get the promotion they might believe it to be personal, damaging your relationship.

Another good point, brought up in an article from Business Knowledge Source, is that hiring a friend at work could mean outside, personal disputes carry into work. It can also work the other way where a work-related disagreement or issue spills over into your personal lives.

Lastly, the biggest con comes if you get pushed to the point where you have to fire your friend. Many people do not like to think about that situation when hiring a friend, but in reality, it is something that may end up a possibility. Before hiring a friend you have to know you are capable of firing them if necessary. You also need to be prepared for any repercussions from a friend you have fired. They might take it personally or feel they were wrongfully terminated for reasons beyond the workplace. Again, this just becomes another strain on your original relationship and is most likely something you do not want to have to deal with.

When it comes down to it, your main goal is to keep your business thriving and growing. Your business’s success is and should be the only priority. If that means hiring a friend will help you reach that desired success, then hire a friend. But if you feel hiring a friend will put your business’s livelihood at stake and you do not want to damage your already existent relationship, then it might not be the best move to make.

Always weigh the pros and cons and make the decision that is best for your business.

Check out this article on Medium, too!

Hiring a Friend: Too Risky?

Hiring a FriendIt was bound to happen at some time or another. You have been approached by your friend seeking to fill an open position at the company you work with. At first glance, it does not seem like too big of a deal. As a human resources professional, you have the power to hire new employees, making hiring your friend simple enough. But is it really that simple? It is a hot-button topic that has been discussed for as long as businesses have been around — and the question still remains: is hiring a friend too risky?

When I was working as a recruiter for a human services agency several years back, I was approached by every single friend – and surprisingly, former classmates – for a job. While I love my friends, and they are a hoot for Thursday game night, my biggest fear was hiring someone with my name behind them. If they succeeded? Great! It was a confirmation of and testament to my phenomenal people skills. If they failed, well…that was a huge hit for the kind of reputation I built up in my role as not only a recruiter but in my company as well.

There are many perspectives on the topic with answers backed by many advantages of hiring a friend and other answers backed by many disadvantages of hiring a friend. But before getting into the meat of the subject, it is important to look at your own position at the company and how it would relate to hiring a friend.

As a human resources professional your job most likely entails duties related to hiring and/or firing, performance reviews, benefits, general employee and management communications, compliance with labor and employment laws, employee development and any employee-related documentation and paperwork. Simply put, if you hire a friend your job requires you to be closely involved with them and what they do at your company, as well as all the other employees under your care.

First, let us look at the pros that come with hiring a friend. An article from Business Know-How highlights the fact that hiring a friend does make the hiring process easier. You most likely already know your friend’s qualifications and history, which can help in confirming a background check or qualifications written on a resume.

In addition, you are probably privy to their work ethic and reliability based on your relationship outside of a working one. If not, there is a good chance you know your friend’s references, making it easy to communicate with them in regards to the position and how your friend may or may not fit. And what usually ends up the most sought after reason to hire a friend, is the simple fact you will get to work together. Having someone you can talk to or get lunch with on a daily basis while at work can make for a more tolerable work situation. This also means you can have a friend to attend work-related activities with, which can aid in overall relationships around the company.

But as is the case with advantages, there are always disadvantages — especially when being a human resources professional and hiring a friend. While actual business advantages exist in hiring a friend, the biggest disadvantage still basically stems from the friendship that exists prior to you hiring a friend.

The Society for Human Resource Management explained it well by saying, “…friendships increase engagement and stakeholder buy-in, but you’re also aware that if employees think you’re too close to ‘select’ people, you — and the HR department — may no longer be viewed as impartial, fair and trustworthy.”

This is an important point to make because it highlights the fact that you do not need to actually be favoring someone for other employees to believe favoritism is at play. Right out of the gate, your friend you choose to hire might already fall under scrutiny with the idea that they only obtained the job because of your friendship. That sentiment will be lingering for as long as you and your friend work together, which can make for a difficult workplace dynamic.

Furthermore, the friendship you and your friend have will definitely play into your one-one-one work relationship. Take for example a performance review you might have to do on your friend. Not only will the pressure to only say good things about your friend exist, but if your friend is doing poorly you most likely do not want to be the one to have to tell them.

It is hard enough telling a regular coworker they need to do a better job. But taking a friend and telling them their job performance is less than satisfactory is an even more difficult predicament. You risk damaging the personal relationship you two share, even if you have done your best to keep it professional.

Even worse, if you have the added responsibility of firing employees at your company, you might have to fire your friend if they are deemed not able to keep up with the demands of the job. Firing a friend not only permanently severs the co-worker relationship but also your personal relationship. An even greater toll could be in the works if your friend feels they were wrongfully terminated and chooses to pursue legal action against the company. Now your whole company is at stake.

When it comes down it, hiring a friend can be focused on two critical variables: your friend and the company environment. If you have an emotionally close relationship with your friend then, be prepared for other employees to see your in-work relationship as favoritism. If your friend was more of an acquaintance then it might be a better fit because you have supplied a new hire that is familiar and trustworthy without the added risk of emotional ties.

When it comes to the company itself, it is important to look at its organizational structure. Is it a small, tight-knit and highly controlled environment? If so, any perception of favoritism on your part could be detrimental to the company and its goals.

One final aspect of hiring a friend that can actually end up an advantage or a disadvantage is how they reflect on you and your competence. If you hire a friend that ends up being a great asset to the company then you will receive praise for your decision to hire. If your friend turns out to be less than adequate as an employee, it will reflect poorly on you and your decision to hire them.

As mentioned earlier, there really is not a definitive answer as to whether or not it is too risky to hire a friend. As a human resources professional it is your job to treat each potential hire the same way while keeping your company’s ideals and aspirations a priority. If you weigh the advantages and disadvantages and feel hiring your friend is a worthwhile move, then take the risk.

Discovering an Employee Lied On Their Resume

Fraud Lawyer Westmont, NJEmployees often use their resume as their opportunity to present their best foot forward. In the best-case scenario, this may include some specific language that is designed to draw a hiring manager’s attention or to stipulate to the employee’s individual background and experiences. However, in certain situations, these embellishments go beyond simply trying to make the employee look good.

A new hire who lied about their skills or their background should be taken seriously and these procedures should be outlined in a human resources manual to allow the relevant individuals to take action as soon as possible.

While in some cases, a job seeker may simply be inflating their resume with skills they don’t have in order to get a position and appear more qualified, the deceit typically will not be discovered until after the candidate is already working. It is important for any manager or human resources professional to realize how to appropriately deal with this situation.

How to Respond Right Away with a Discovered Falsehood on a Resume

The first step in dealing with a new hire who lied about something on a resume is to confront the person directly. The meeting should be conducted in private and the person who is handling the meeting should be straightforward and polite. Any of the rest of the information on the resume should be cross-referenced at this point in time.

Solid evidence and reasoning should be presented in order to show that the employee has fabricated this information, but that they should also be given an opportunity to explain.

An employer may not find out that a dishonest employee has lied until long after he or she was hired. Claiming to possess a special certification or a degree may help a new employee get higher compensation, extra benefits or even a higher role in the company.

However, if these qualifications originally claimed do not exist, yet the employee seems to be capable of doing the job and is very apologetic, the company may choose to keep them on board while lowering his rank or cutting his compensation. This allows the employee to remain employed, however, he or she is only being paid where their experience and their skills truly merit.

In other situations, a company may not feel comfortable at all continuing to employ someone who lied about their skills, background, or degrees on a resume. This is primarily because that same person could be lying about other things as well. Keeping a hire on your team who you cannot trust can be a frustrating burden. Furthermore, an unskilled employee or an untrustworthy employee could be a real danger to co-workers. If the human resources department decides that this is a particularly egregious offense, they are well within their rights to simply terminate the employee.

Studies have shown that an alarming number of employees have lied on their resumes and many employers said that if this was discovered, they would give new hires a second chance depending on the severity of the lie.

Before jumping to conclusions, it is important to set aside time to talk to the employee directly to get a clear sense of what is going on and to find the most appropriate course of action. Many organizations will benefit from having policies in place that allow a manager to fire an employee for lying on a resume.

If such a policy already exists in the human resources manual, upper management will likely support this decision. If the company doesn’t have a policy, however, there are still opportunities to justify letting the worker go.

One common justification is that this person may have no moral code, meaning that he or she is also likely to cheat, steal or perform any other immoral acts in order to benefit his or her individual career. A person who stops at nothing to get ahead may not think that forging sales numbers, pressuring clients or embezzling is wrong if it gets an end result. The company may not want to have this type of liability on their hands and likely upper management will support the decision if it can be shown that the deceit was intentional and may lead to future behavior.

Another common reason why it is beneficial to have a policy in place that allows the managers of the company to terminate an employee in this situation is that it can send the wrong message to others. If other employees find out that a person lied on his or her resume and that they were able to keep their job, it sends the wrong message. The company should not want employees to believe that it is okay to lie to clients, co-workers or management. You can make it clear to everyone in the organization the exact level of moral conduct and code you intend.

Have a Clear Process

Consistency is critical when figuring out how to deal with an employee who lied on his or her resume. The review of such information should always be based on evidence and it should be clear that there is a policy being followed every time this situation arises. Proper documentation can help to prevent retaliation, lawsuits and other allegations. Although there will always be some level of individual investigation when it’s suspected that an employee lied on a resume, a proper response should include all issues and should give the employee a chance to respond about the concerns first. Misunderstanding are possible, but cases of fraud should be taken seriously by the employer, too.