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The act of hiring close friends and family members and can be beneficial or detrimental to the business, depending on various factors.
Benefits: The employer knows them already and has a personal relationship with them, knows their skills, background and type of personality. This reduces the 'fit-in' time required for a new hire. Family members would, reciprocatively, work with dedication and ownership, having a genuine interest in the business, and maybe continue the legacy in the future.
If family members are treated in a previleged manner, or with partiality, it could backfire and toxify the organizational culture. If a family member has to be disciplined or fired, as it can hurt the personal relationship, so one has to draw a line in the beginning before they are hired.
If a clear demarcation of the two roles of a family member and an employee is resisted, it's a sign they are not a good hire.
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