Hiring a friend into your company is risky: Can the personal relationship coexist alongside a professional one? But if you approach the situation carefully, it's possible to work with each other while preserving the friendship. First, make sure you're comfortable saying no to the person. If you do become your friend's boss, you'll need to have confidence that their emotional maturity can make the dynamic work. Next, set their expectations about whether they're likely to get the job. Say something like, "I want to explore the possibility of our working together — but I want to be clear that it might not be a good idea." Last, think together about how you'd deal with difficult situations that may arise on the job. This will help both of you set the psychological boundaries you'll need if you're going to be coworkers in addition to friends.
Adapted from "What to Consider Before Hiring a Friend," by Joseph Grenny
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