Reverse Nepotism...
Small-business owners know that it’s often difficult to find good employees. It is common to hire children in a family business to teach them the ropes and, hopefully, create something that can be passed on them. But there may be great value in reverse nepotism – hiring senior relatives such as parents, aunts and uncles, or older cousins.
The good
The term “nepotism” has the negative connotation of favoritism based solely on a family relationship. In practice, however, nepotism can be benign or even favorable. As a result of recent economic and demographic changes, many large corporations, such as Wal-Mart, Home Depot and Borders, are hiring older workers to fill jobs. Here are some reasons why hiring an older family member can be helpful to a small business:
Invaluable experience – like other older workers, a senior family member has a lifetime of experience and talent that can be brought to your job.
Personal loyalty – family members may be more committed to your business and work hard to help you succeed.
Ease of placement – there are no search costs (e.g., employment agency fees; newspaper ads).
Flexibility – family members may be more amenable to shifting responsibilities, changing hours and otherwise accommodating the fluctuations that often affect a small business.
Cost savings – as with any older worker, there is usually less turnover and lower absenteeism, which can save money for your business. Borders has observed that the turnover rate for workers age 50 and older is one-tenth of that for workers under age 30, an important consideration in view of the typical 60% turnover rate for retailing. Turnover alone can cost thousands of dollars in lost productivity and worker replacement (hiring and training).
The bad
While there are compelling reasons to hire an older family member, there are some cautions to observe.
Supervision – a younger relative instructing an older on e involves a power shift that may not always work out. Make sure that your older relative can take directions from you. This type of role reversal can be especially difficult in the context of a parent-child relationship.
Relationships – other employees may resent or have concerns about the hiring of a parent. Consider, for example, what you would do if another employee had a disagreement with your parent. Could you resolve the conflict in a fair manner, without reflexively siding with your parent?
Firing – if things don’t work out, it can be more difficult to fire a relative than an unrelated employee, so make sure going into the arrangement that your relative can handle the job.
Making it work
If you decide that hiring an older relative is a good idea for your company, take steps to ensure a successful working relationship.
Discuss your concerns before finalizing a job offer. Anticipate potential problems, such as making sure the relative does not assume a proprietary role with respect to other employees.
Clarify the job. Be explicit about work responsibilities and what should and should not be done.
Pay fairly. Don’t expect to get discount labor by hiring an older relative. There’s a wealth of experience and you must pay for it. On the other hand, you don’t have to pay a premium, just because of the familial ties. Best bet: Pay the market rate for the work to be done.
Consider hiring a parent in a consulting role rather than as a full-time employee. This arrangement allows you to benefit from your parent’s knowledge as he or she earns a living, while avoiding potential problems with your other employees.
Copyright © 2005 BWideas.com, Inc.
