I've employed many people over the last 20 years. Unfortunately I can't facilitate you with a magic formula for how to make it work.
People say: don't employ friends and family. My old man and me have been partners for nearly 30 years (our first business was a video shop when I was 13 (glad I got out of that game)) and my best friend since I was 5; was my highest earner and is now my general manager, he's worked for the company longer than I have ( 21 years for him, 20 for me ).
I currently have 16 employees, ages 18 - 50 some married with kids, some still at home with mum, some still at home with mum when they started and now married with kids.
A planned and robust recruitment process helps. I've got pretty good at interviews which I used to detest. Our newest employee is a guy I knew at school, he got the job because in the interview he said: I'm sick of driving jobs, who piss you off as soon as there's any shortage of work and I see lads working for you year after year....
I pay minimum wage 37.5 hours per week. Every week, then a monthly performance bonus. I try to be as laid back and flexible as possible. I keep an eye on targets and timesheets, if someone is not pulling their weight it's discussed in our weekly meeting, where everyone is given a chance to voice their opinion.
I don't earn huge amounts of money (yet), I'll bet many of you walk away with more money in your pocket than I do at the end of the month. What I do have is a long term plan and the security of knowing that if there's something that happens I'm financially stable, the business is not reliant on me.