MANILA - Entrepreneurs should avoid hiring friends or their family members unless they can fire them just as well, venture capitalist Kevin O’Leary told a Filipino audience on Monday.
Employees should be “judged on performance, based on the success of the business, not on the way of friendships,” said O’Leary, host of the business-pitching reality show “Shark Tank.”
“Businesses are not social clubs. They’re not places where you can sit around the campfire. You shouldn’t hire your friends, you shouldn’t hire your family members unless you have the guts to fire them—because nepotism is horrible,” he said during ANC’s Leadership forum.
Firing a spouse if you’re the CEO of the company might not be easy, “but that’s what you have to do sometimes to be successful because at the end of the day, it’s the business that matters,” he said.
“It’s okay to do that because you have to have the very best people doing the best they can all the time,” he said.
O’Leary, whose nickname is “Mr Wonderful,” is among “sharks” in the ABC reality show where startups make their pitches to venture capitalists.
He headlined the fourth edition of ANC’s Leadership Forum, which was headlined previously by billionaire philanthropist Richard Branson, former US Secretary of State Madeleine Albright and Mandalay Entertainment chairman and CEO Peter Guber.