Taking on your friends to help you run your business can mean trouble.

A survey of employers by recruitment agency Fish4jobs shows the policy can lead to discipline problems.

The report points to the difficulties experienced by Prime Minister Tony Blair after he appointed political allies to top Cabinet positions.

The highest profile problems came from one of his closest confidantes, Peter Mandelson, who eventually resigned as Northern Ireland Seretary over the Hinduja passports row.

It was the second time he had resigned -- the first time involving the scandal over a home loan. Recently, there have also been problems for Mr Blair over Transport Secretary Stephen Byers' loyalty to disgraced special adviser Jo Moore.

A poll of 200 employers by Fish4jobs revealed 74 per cent would not employ a friend to work for them directly.

The research revealed the advantages of knowing and trusting a friend who then becomes a work colleague were far outweighed by the potential disadvantages, such as difficulty having a professional relationship with the friend.

The biggest pitfall when recruiting a friend is the lack of objectivity when it comes to disciplining them. Eighty-six per cent of employers questioned said it would be difficult to discipline a staff member who also happens to be a friend.

Many respondents cited how Stephen Byers supported his friend and colleague Jo Moore -- who caused outrage when she said the department could bury 'bad news' by announcing it on September 11, the day of the terror attacks on the USA -- as an example of how professional judgement may be compromised, said Fish4jobs spokesman Ian Sprackling.

Opinion was split on whether appointing a friend would be seen as being a fair appointment -- even if based on merit.

Sixty-four per cent of employers were against employing too many friends as this could lead to a "them" and "us" culture within the workplace.

About 95 per cent of the companies polled do not have guidelines on employing friends, although most large organisations have a requirement to advertise posts both internally and externally.

"The results of the research reveal a reluctance in the private sector to follow Tony Blair's example and appoint friends as colleagues," said Mr Sprackling.