Hiring Family Members

I was just curious to see how others handled hiring family members. We have several branches in small communities where it seems like everyone is related. How should hiring members of the same family be handled (if at all)? And how close is too close to be related and working together?

We have family members at the bank; however, they cannot work in the same department or in positions where someone could have supervisory authority in any way over a family member.

We have had that in the past and it does cause some hard feelings because, whether it is intentional or not, there is favoritism! It might work if the family members worked at different branches.

At a previous bank I worked at it was permission to have family members work for the bank however, they had to be in different departments and could not be in a supervisory capacity of one another. Our policy was broad that it included members of the same domcile so that it covered "room mates, friends and significate others" which cohabitated together. Now mind you, no one checked to see if they lived in the same house but after all it was a small town and everyone knew everyone's business.

Current employer - we allow family members, can't be in the same departmetn/branch/job responsiblity area. Are never allowed to directly supervise family member.

Previous job - president hired his son, with no banking experience, and 9 months later he was the president, CEO, and COO. (no, they don't own the bank, they just think they do. policy manual explicitly states no family members will be hired). Board went along with it. One of the many reasons I'm no longer there.

Dad is the president. Cousin is the Vice-President. Uncle WAS the vice president, but is now EVP (read: retiring soon). I am the BSA/Compliance Officer. We have 10 in house emoployees. We are 4 of them. I am 5th generation. We own not only the bank, but the holding company that owns it and the in house insurance agency (small town). So family hiring practice here are pretty much the norm I would think, LOL!