7. Have you explained that special privileges will be nonexistent? If you become your child's direct boss, make it clear that any promotions or salary increases will be the result of merit, rather than a shared last name. Emphasize that as your employee, he or she "will have responsibilities and be held accountable," Mendoza says.
8. How will it play with other family members? If you're the head of a family business, hiring your child over another relative's child could leave some in the tribe crying favoritism, Mendoza notes. "[Family members] may become jealous. They may want to campaign or lobby for their own direct offspring," he says, adding that it's a good idea to have policies in place to avoid things "turning messy."
9. Are you ready for charges of nepotism? Promoting your child to the company's high command may irk colleagues who have worked there for years. They may come to view your managerial style as one high on favoritism and low on merit. "If your kid's not stellar, you're going to have that label," Colin says. Still, he says, other rank-and-file employees shouldn't be surprised when the "royalty factor" kicks in once promotional decisions are weighed, particularly if the business is family-owned.
10. Could your reputation be damaged if it doesn't pan out? If your son or daughter turns out to be a first-rate employee or starts rough but turns it around under your tutelage, then you'll look great for picking such prime personnel, Mendoza notes.
But if the experiment goes awry, it could cast lasting doubt over your professional judgment. "You certainly don't want to put yourself in the position of having to defend your son or daughter's poor work habits to your boss," he says.