[How] Should I hire my brother-in-law?

[anarcticpuffin]

My brother-in-law graduated this past May with a CS degree from a middle-tier private university. After an honest shot at finding a job with nothing to show for it, he's begun to hit a wall. He's not alone, as evidenced in a slew of recent articles:

http://online.wsj.com/article/SB124181970915002009.html

http://www.mcclatchydc.com/2009/06/25/70788/recessions-toll-most-recent-college.html

I'm beginning to get worried that his hot & steamin' degree is about to get cold and soggy if he doesn't get some work experience to keep his resume moving. He isn't as motivated as the typical entrepreneur-type on HN so I don't think he'd start his own venture by himself.

So here's where my question for HN comes in... I've had a couple of ideas up my sleeve but no time to implement them (my day job writing HFT software has me pretty tied-up). Do you think it's a good idea to hire my brother-in-law to kick off a venture that I otherwise wouldn't have the focus for?

If the answer is yes, how should he be paid? Here are my concerns:

* Paid in equity - He needs some immediate pay for his efforts. If the project fizzles out because I don't help him execute, he never gets any compensation for this.

* Paid per hour - He is very inexperienced, especially with high performance and/or web development. Most of his hours will be spent learning. I don't necessarily want to throw money out the window to train him on things that I would be doing for fun in his position.

* Paid per deliverable - This seems like the best bet, almost like hiring a consultant. Am I wrong on this?

* Some hybrid of equity & hourly or deliverable - This would provide a vested interested in the venture plus offer some immediate cash.

I've specifically avoided including "experience and training" in the compensation list because I know this has a stigma on HN. Although I do think he will be gaining some very valuable programming knowledge in this pursuit.

So, what are you thoughts?

[staunch]

Do a trial project (but don't call it that). Say a two or three month project for $N. Tell him that's the only project you plan to do with him.

Assume you will get nothing usable in return. Write off the money as a loss. If you're pleasantly surprised with the results then do a bigger/real project with him. If not then at least there are no messy endings and hurt feelings.

[anarcticpuffin]

I like the idea of that. This way I can make sure he's capable of focus and delivery.

[codyguy]

Think about some other angles too. Is he prepared to be your employee? For how long? Do you think he could take you for granted? What if it doesn't work out for one of you? How bad could it get? Are you both prepared to handle the consequences, especially on a personal level?

[brudgers]

What has he been doing besides looking for a job?

If it's been writing code, building something, then yes you should hire him.

Otherwise, go with your gut - either steer clear or pay per deliverable.

[anarcticpuffin]

Unfortunately it may be latter. I think the combo of your idea and staunch's may work. I'll give him a pay-per-deliverable quick project as a trial run and see if he just needs structure to get into it. If not, it was a gift of some money in a rough patch.