Understanding the Dynamics of a Family Run Business
It’s a Challenging Task when you’re being asked to join a family run business. Should you or should you not....
Family members working together in a family-run business…WOW that in itself is a challenge!
Keeping your emotions under control can be a daunting task in the workplace, especially when its family members working with each other. And then, trying to keep the professionalism in place is even more perplexing. As a leader of a family-run business, it is important for the leader to keep all of the roles and responsibilities clearly defined. Without role clarity keeping your business competitive, profitable, and maintaining the desired growth will be next to impossible. Managing the human capital along with family team members can be a real challenge. One must question the intent of hiring a family member. It may have been due to their expertise or education in a specific field. The family member may have expressed a desire to join the family business. Or it may have been due to the fact the family member could not get a job anywhere else. When hiring family members the key is to start them off with a contract. Yes, an Employment Contract which outlines their roles, duties and responsibilities. More importantly, the document should outline whom they report to and/or who reports to them (if it’s applicable). Performance guidelines and targets need be outlined for the role (just like every other employee). The Employment Contract will also highlight pay scales, methods of performance bonuses, vacation time and scheduled reviews. I believe the key to a successful working relationship is to outline the expectations as well as reviewing the targeted goals of the role (from an employee/employers perspective). I would also recommend an understanding of when and where business can be discussed. Yes, commitments on when and where the family can talk about business. The home environment should be exempt from all business conversation it will lead to more members of the family getting involved and possibly taking sides. Therefore the house remains for the family and good times. The key to a successfully run family businesses is personal issues remain at home and work issues remain at work. I cannot stress the importance of never mingling or combining the two together. If adhered to the result will be a harmonious home and a productive work environment.
To learn more about Employment Agreements and the work environment for family businesses I can be reached at [email protected]