Companies can face problems ranging from fear to favoritism.
Fear enters the picture when employers feel they can't lay off an unsatisfactory spouse because a highly valued one might jump ship as well. Favoritism occurs when one member of a couple doesn't pull his or her weight, but nothing is done about it because of a powerful spouse employed at the same firm. Employers say they're tempted to hire spouses because it solves tough recruiting problems in a tight job market. Eric Olinger, president and chief executive officer of ChatSpace Inc., a Carlsbad, Calif., Internet chat technology firm, thought he was making a smart decision when he hired Nancy Ferguson, wife of his networking operations director, Bill, as an administrative assistant. Ms. Ferguson had worked temporarily at the firm and done such a good job that Mr. Olinger felt he'd found a perfect employee without having to advertise or hire a recruiter.