Should You Hire Your Friends? | AskNgo

Should You Hire Your Friends? | AskNgo

November 7, 2019 9 By Kody Olson


(rock music) – Hey guys, how’s it going? It’s Charles Ngo. I am very excited to announce
that there’s a new series happening on my YouTube channel. It’s called Ask Ngo. Now every day, I get
questions from you guys on my social media, my email,
my YouTube comments, and I get a lot of
questions and some of these questions are really good, and I thought, instead of just answering
people one-on-one, how about I shoot videos
so that all of you guys can benefit from them? So what I’m gonna do is I’m
gonna start trying to shoot some more videos, and if you
have any questions you would like for me to answer
on affiliate marketing, Internet marketing, business,
life, productivity, anything, just ask me and I’ll do
my best to answer it. Hey Charles, I have a question. I’m looking to hire my
first team member and one of my friend, he needs a job. Should I hire him? Should I give him a chance? Where are your thoughts on
hiring or working with friends? Now this is a very good
question because anyone that starts building a team, you’re
gonna have to run into this sooner or later, because
once you start becoming successful, you start hiring
people, then some of your friends may be attracted,
and want to work with you. On your side, you can
see hiring a friend as a very easy option, because
you don’t have to go the route of, going on
Monster.com, Career Builder, or Craigslist when you know your friend, you know his personality,
and you guys may get along. So it might be the easier
option to hire him. So I’ve actually hired
some friends in the past. Some of them have worked
out amazing, and others I kind of regret. So I want to walk you through
some of my thoughts on if you should hire worker friends. So whatever advice I
give you, keep in mind the idea of statistics. I’m gonna share with you
some of my experiences, but there are so many
people in this world, every situation is completely different. So here are some of my experiences. Rule number one, when you
hire a friend, never hire someone out of pity. Never hire someone
because they need a job, you feel bad for him,
and you have the means, and you want to help
your friend because you are a loyal person, and
that’s something I’ve done in the past, and this is a huge mistake. Never hire out of pity. Look, if someone, if one of
your friends is not doing well, then you can help out in
other ways, but giving them a job out of pity is not a
good look, because there could be severe consequences. So number one, never hire out of pity. Tip number two is, so this
person is your friend, you know a lot about them,
but would you hire this person if they weren’t your friend? Look at their job experiences. Look at their reference,
look at their skillsets, because just because they’re your friend, there’s this halo effect
where you look at them very positively, but you
take away the thought of them being your friend, would
you still hire them? You still have to put them
through the same hiring process that you put everyone else through. You have to look at their references. You have to look at their job experience. So yes being their friend is
a benefit, but people really overstate the benefit of it. So once again, evaluate them
as if they weren’t your friend. Tip number three. I mentioned earlier that
there’s some kinda halo effect when it comes to hiring friends. Do you have other people on your team? If you have other people
on your team then it’s very valuable to bring them
into the interview process, and to ask their feedback,
because they don’t have the bi, psychological
biases that you have. They haven’t been homies
with him for like five years. So they can evaluate this candidate on a more objective basis. Think about it, this is not
a decision based on you, this is a decision based
what’s best for the company. Your other team members are
gonna be in the trenches working with this person every single day, so they should have an input. The fourth thing to
consider is are you willing to lose this friend? Now, whenever you hire someone,
I know it’s safe to say like hey, if this doesn’t work
out, we’re still be friends, but it’s kind of like a relationship. Depending on how it ends,
chances are you’re not likely to be friends again. So you have to think, is the
risk versus reward worth it? Is their skillset high
enough that it’s a risk losing a friend? So if you’re in a situation
where this is your best friend, you couldn’t live without
them, they’re not exactly the best worker, then you
probably shouldn’t hire them, just because the risk
versus reward is not there. Now something really
popular is when you’re first starting your business, you
might want to get a partner, and when you get a partner,
it’s very easy to turn to one of your friends. My recommendation on this is
to, when you hire someone, make sure they’re an
asset to your company. Make sure they compliment your skillsets. Very rarely do I see partnerships work. The ones that work well
are the ones where people have complimentary skillsets. So one person may be the
businessman, the social person, and the other one may be the tech nerd. A great example is Steve
Jobs and Steve Wozniak. They compliment each other. They fill each other’s weaknesses up. If you have peanut
butter and peanut butter, then that’s just gonna be mush. You need peanut butter and
jelly in a great partnership. Let’s say you end up hiring your friend. It’s very important in the
beginning to set the boundaries. You have to set the boundaries
from the very beginning, or else they’re just
gonna walk all over you. If someone is your friend, they may not respect your authority. They may not respect the
fact that you’re a boss, or maybe they want some
special treatment, because hey, you’ll talk to all the
employees this way, but because you are friends with them, they
expect a special treatment. So you have to be upfront
in the very beginning. It’s like, hey Bob, look,
you’re my friend but I just want to make sure that
you respect me as a boss. Here are the boundaries,
here are the rules. You’ve gotta follow them. Even though you’re my
friend, I’m still gonna treat you as if you’re my employee. I think it’s, do you think
this is fair for the company? So you have to get the
buy-in from them as well. So I listed a lot of negatives. Let’s talk about the
pros of hiring a friend. A few pros involved. One, it makes the hiring
process a lot faster, because if they’re a friend,
then you don’t have to go on Craigslist, you don’t
have to go to Monster, you don’t have to weed out
like 100 different candidates. Another one is, perhaps they
can communicate with you better because they’ve
known you for so long, that they know how to talk to you. They know what your strengths,
your weaknesses are. They know you very well. And number three, they might be a little bit more loyal. So this is a very interesting topic. In business, loyalty is
very valuable, because you don’t want employees
stealing your secrets. You don’t want employees
that are just gonna job hunt. So if they’re your friend,
then they may stick with you a lot longer. And that is true, however
I just want to point out one cognitive bias. I feel just because they’re
your friend doesn’t necessarily mean they’re gonna be more loyal. What I mean by this is, if
it’s a bad work environment, if it’s a bad fit, or maybe
they decide they can make more money working somewhere
else, your friendship’s only gonna go so far, because
at the end of the day, everyone’s looking out for
their own self interests. I’m not gonna say it’s good
or not good to hire a friend. I think each situation is so different, it depends on the person. All I did was give you a list
of questions to go through, and my main takeaway is this. If you’re gonna hire a
friend, just make sure they’re the most qualified
person for that position. Be friends with who you
wanna be friends with, but when you work with
someone, when you hire someone, make sure they are the best. Make sure they are the
best for that position, and if it works out, then awesome. But for me personally, I
don’t like to hire friends as much these days, because I like to have that strict line between
employees and friends. If someone’s, you know I don’t
have too many great friends these days, so if
someone’s a great friend, I don’t want to lose them. It’s not worth the risk, versus
me going to the job market. I can hire from thousands of people. The risk versus reward is not
there, and also when I have employees, I have, it keeps
everything very simple for me. I don’t want to treat 10 people
one way, and this one guy, there’s all these other
emotions and conflicts involved just because they’re my friend. So that’s my advice. I hope you guys like this. Let me know. (rock music)