Should You Hire a Family Member for Your Propane Business? Read This First

Thinking about bringing a relative into your propane business? Hold that thought. A well-planned family hire can strengthen your company, but a poor decision can put everything you’ve built at risk.

It may surprise you that internal conflicts from poorly managed family hires contribute to nearly 60% of family business failures. But this isn’t just another pros-and-cons discussion. You’ll find real, actionable solutions and a proven framework to ensure that hiring a family member helps your business thrive—not unravel.

The Risk of Automatic Entry

Many business owners assume their children or in-laws should naturally have a place in the company. After all, isn’t the goal to create a multi-generational legacy?

But hiring based on obligation rather than merit can backfire. Here’s what’s at stake if a family hire isn’t truly qualified:

• Low Employee Morale: Long-time employees may resent a relative who hasn’t earned their role.
• Operational Damage: A weak leader in a key position can disrupt customer service, sales, and overall efficiency.
• Family Drama: If they underperform, how do you handle it? Can you let them go without causing holiday tension?

The good news? You don’t have to rely on gut feelings. There’s a structured way to evaluate whether a family member is an asset or a liability—without risking family harmony.

The Family Member Hiring Checklist

Before making an offer, put your relative through this five-question test. If they don’t pass, think twice before adding them to the payroll.

1. Do They Bring Real Value?

Would you hire them if they weren’t related to you?

This is the most critical question. Do they have skills, experience, or knowledge that your business actually needs? Or are you creating a position just for them?

Red Flag: If you wouldn’t hire a stranger with their résumé, hiring a family member with the same qualifications is a mistake.

2. Have They Proven Themselves Outside the Business?

Successful multi-generational companies rarely hire family members straight out of school. Instead, they encourage them to work elsewhere first to:

• Develop a strong work ethic.
• Learn to take direction from non-family bosses.
• Bring fresh ideas into the company.

If your relative has never held a job outside the family business, ask yourself: Are they here to grow the company, or just to claim a position?

3. Are They Willing to Start at the Bottom?

A sense of entitlement is a business killer.

If your relative expects a leadership role from day one, that’s a problem. The best way to test their commitment and character? Have them start at the bottom—just like anyone else.

Many successful second- and third-generation propane leaders began by:

• Driving a delivery truck before managing a fleet.
• Handling customer service before leading sales.
• Installing tanks before running operations.

Red Flag: If they’re unwilling to put in the work, they’re not ready to lead.

4. Do They Align with Your Company’s Culture & Values?

Even with the right skills, do they fit the team culture?

A propane business isn’t just about selling fuel—it’s about trust, reliability, and customer relationships. Family members who feel entitled often resist feedback, creating workplace tension.

Ask yourself:

• Are they coachable, or do they push back against criticism?
• Do they have the grit to handle tough situations?
• Will they earn the respect of employees and customers?

If the answer isn’t a clear yes, they may do more harm than good.

5. What Do Other Employees Think?

Your team often spots red flags before you do.

Employees will quickly notice whether a family hire is an asset or a liability. Some family businesses even conduct anonymous employee surveys to gauge perceptions of new hires.

Warning signs include:

• Employees feel they have to “walk on eggshells” around them.
• Complaints of favoritism or unfair treatment.
• A drop in team morale after they join.

If multiple employees raise concerns, take them seriously—before it’s too late.

Managing Family Dynamics the Right Way

Even with a strong hiring process, emotions run high when family is involved. Here’s how to keep expectations clear and avoid unnecessary drama.

1. Communicate Expectations Early

Set clear ground rules before they start:

• They will be held to the same standards as other employees.
• They won’t start in a management role.
• They must earn respect through performance, not family status.

2. Keep Business & Family Separate

One of the biggest mistakes business owners make is letting work disputes spill into family life.

To prevent this:

• Avoid discussing business at family gatherings.
• Don’t give special perks that others don’t receive.
• Treat performance issues as business decisions, not personal ones.

3. Use Outside Advisors for Tough Calls

When family conflicts arise, a neutral third party (consultant, attorney, or board member) can help mediate tough conversations, removing emotional bias from decisions.

4. Set Up a Formal Review Process

All employees—including family—should undergo regular performance reviews.

• If they meet expectations, great.
• If they don’t, hold them accountable just like anyone else.

5. Have an Exit Plan

Not every family hire will work out. If a relative is hurting the business, you need a graceful exit strategy.

• Discuss alternative roles that better fit their skills.
• Offer guidance on outside career paths.
• Be honest, yet respectful about why the decision is necessary.

Building a Strong Family Business That Lasts

Hiring family members can be a smart move—but only when done strategically. The key is ensuring they bring real value, align with your business culture, and earn their place like any other employee.

Your propane business’s success depends on leadership, not loyalty. If a family member can help your company grow, bring them on board. If they can’t, you owe it to your business to say no—for the sake of your employees, customers, and long-term success.

Want More Expert Guidance?

Explore our comprehensive resources below for in-depth strategies on family employment, leadership development, and business sustainability.

Key Resources:

• Article: “10 Shocking Truths About Managing Grandchildren in Family Businesses (You Won’t Believe #7!)
• Article: “ 10 Must-Know Tips for Hiring In-Laws in a Family Business”
• Free Guide: Family Dynamics
• Free Guide: Family Governance
• Book: Help I’ve Got Family in the Business by Hugh B. Roberts

How The Rawls Group Helps Propane Dealers

The Rawls Group specializes in business succession planning, helping propane dealers build strong, sustainable, multi-generational businesses. With decades of experience, our team provides expert guidance on leadership development, family business dynamics, and strategic growth to ensure long-term success. Whether you’re navigating the challenges of hiring family members, strengthening operational efficiency, or planning for future ownership transitions, we offer customized solutions tailored to your unique needs. Our goal is to help you create a resilient business that thrives for generations to come, balancing both family harmony and business success. Reach out to The Rawls Group to learn how we can help secure your propane business’s future.

Family and Business alignment is hard to find when business issues liven up family dynamics.

However; with proper process, governance policies, and mutual respect built over time, a Family Business can thrive through multiple generations. Click the following links for more drill-down resources on  Family Dynamics and Family Governance.

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