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The problem with hiring friends and family

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HC Online | 23 Jun 2012, 12:00 AM Agree 0
For HR professionals in both small and large companies the issue of hiring a friend or family member inevitably crops up – is it something to be dismissed from the outset?
  • Angela Ciliberto | 21 Jun 2012, 03:48 PM Agree 0
    Hold your horses here. Family Businesses make up 70% of private companies in Australia and employ 50% of the workplace. As such nepotisim is alive and well in this country. However it is important to have a set of rules around employing family - Is there a position available? Does the applicant meet the requirements? Not having family members reporting to one another etc. If you want some good information on best practice check our Family Business Australia
  • Karla | 21 Jun 2012, 04:04 PM Agree 0
    See article about hiring relatives...I think we both agree with most of it!
  • Kate Connellan | 21 Jun 2012, 05:43 PM Agree 0
    Great article - and good point James Adonis!
    We go backward and forward with this in my workplace (the waterfront) with our workforce.
    Last year I recruited 80 new starters. An analysis of our ROI showed that we got the best fitting candidates with the right skills and experience via referrals from current employees. On the flip side, when it comes to promotions, we have a rigid process which is absolutely regulated by the EBA (agreement with the union). It leaves such a minor margin for management discretion and even then it is a survey of about 10 of the managers. Despite this, our employees are absolutely convinced that nepotism plays a role.
    Obviously there are other complicating factors, but despite what we say, the perception is that nepotism plays a part, and this effects our morale and culture.
    On the flip side,
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