Hiring Friends and Family in Business: The Myth, the Mayhem, and the Magic

Ah, hiring friends and family , the business equivalent of mixing gin with your morning cereal. It’s either a stroke of genius or a recipe for a messy hangover. Conventional wisdom screams, “Never do it!” But is that really the gospel truth, or just an old wives’ tale dressed up in HR jargon?

The “Oh Dear” Moments

Let’s be honest, hiring your mate Dave because he once balanced his own bank account can go downhill faster than a cyclist on the Tour de France. Dave might pay the electricity bill twice but forget the VAT return, and suddenly, you’re explaining to HMRC why your accounts look like a toddler’s drawing of the London skyline.

Or Auntie Sheila, brought in for her “amazing organisational skills.” Turns out, Sheila’s version of organisation is filing invoices in a box marked ‘miscellaneous’ alongside last year’s Christmas crackers and an assortment of empty marmalade jars. Not quite the filing system you had in mind.

Then there’s the classic sibling rivalry scenario. You hire your brother thinking you’re about to become the next power duo, only to find every meeting turns into a reality TV-style showdown, complete with passive-aggressive comments and the kind of family feuding that would make EastEnders blush.

A notorious example of family-business fallout is the tragedy of the British retailer BHS (British Home Stores). Once a beloved high street giant, it famously fell into administration in 2016, partly due to family-linked management decisions that failed to modernise the business or maintain its financial health. The resulting chaos left thousands unemployed and pensions in jeopardy.

But Wait, There’s Hope!

Not all tales end with someone storming out, slamming the door, and swearing never to speak again. Plenty of successful businesses thrive on family and friend hires. Take the legendary Sir Richard Branson, who famously started Virgin Records with friends, building a business empire that now spans airlines, trains, and even space travel. Their early trust and loyalty laid the foundation for global success.

Closer to home, look at the John Lewis Partnership, a UK institution that began as a family business and grew into one of the country’s most trusted retailers. While now a partnership structure, it retains the spirit of family values, putting staff (or “partners”) at its heart, which has paid off in loyalty and customer trust.

Small, family-run businesses remain the backbone of the UK economy. According to the Federation of Small Businesses, over 60% of UK businesses are family-run, often outperforming non-family firms in longevity and employee satisfaction.

How to Make It Work

The key to success is treating family and friends like any other employee: with clear roles, boundaries, and expectations. Draw up contracts, clarify responsibilities, and don’t shy away from having the awkward chats about performance, pay, and professional standards. It might feel weird, but mixing business with pleasure without structure is a fast track to disaster.

Set ground rules early. For example, keep personal squabbles out of the workplace. If you wouldn’t argue about it in a pub, don’t argue about it in the office. And remember, you can love someone dearly and still give them a firm talking-to if they’re not pulling their weight.

Also, seek professional advice. A good solicitor or business adviser who’s been through the trenches can help you navigate tricky family dynamics and legal requirements, saving you time, money, and heartbreak.

Final Thoughts

Hiring friends and family isn’t inherently a disaster. Done right, it can be your greatest asset — built on trust, loyalty, and shared vision. The pitfalls? Sure, they exist. But with clear boundaries, solid contracts, and professional advice, you can avoid the classic blunders and make the most of what is often your most dedicated workforce.

So, next time someone tells you never to mix business with family, remind them of Branson, John Lewis, and countless thriving UK family firms. Just keep the marmalade jars out of the filing cabinet, and always, always get the paperwork in order.

Cheers to working with the people you know, and making it work for everyone! And remember, if you are going to hire your cousin Terry, make sure you’d still want him in the job after three pints and a game of darts.

If the answer’s no… maybe stick to Christmas dinner instead. Cheers!

Remember: Never base your business decisions solely on what your mate down the pub reckons, especially if he's still convinced Betamax will make a comeback. And as for the online "guru" who made six figures last Tuesday from drop shipping llama socks… take it with a bucket of salt. Always do your own research, trust your instincts and your spreadsheets, and most importantly, speak to someone who actually knows what they’re talking about. Preferably someone with a proper title, not just a podcast.