Employers: Bringing New Employees into a Family Business

Starting a family business involves finding a new kind of work life balance – working with your loved ones. When everyone has a vested interest in getting things right and doing the right thing, incredible things can be achieved. However, what happens when you need to create a bigger team and bring new people on board? Discover some of the pitfalls and how you can avoid them when your family business is facing recruitment decisions.

1. All systems are go!
Before bringing someone new on board, get your tribal knowledge written down. Create an Office Bible that can act as a guide to “how we do things around here” and draw up an organisation chart clearly defining who reports to whom.

Job descriptions defining who can sign off what, deal with key clients and make purchases will also help codify people’s roles. Once you have these systems in place, it is a lot easier to decide what your new employees need to know to do their job well and exactly what is expected of them.

2. Kitchen to Boardroom Table
Evolving from the kitchen table to an office large enough to have a boardroom is one thing. Suddenly having new faces filling the seats around the boardroom table can be an even bigger shock to the system.

Setting ground rules, where work stays at work and home life stays at home is mission critical. Certain conversations can no longer happen over a Boxing Day BBQ – you need team input. Understanding the “why?” behind this is key to this. Having people with “outside” ideas will nurture innovation and ensure that the workload is shared so the business can grow and everyone avoids burnout.

3. Everyone is an Employee
Be the change you want to see”  Mahatma Gandhi – needs to become everyone’s mantra. If you want your employees to be on time and be professional, you need to lead by example.

This includes being fair to all – no preferential treatment and bad behaviour is just that, bad behaviour. Saying “He’s just having one of his little tantrums!” is not good enough. Have the courageous conversations early, and if disciplinary action is needed get external assistance to make sure the process is impartial.

This cuts both ways with home life, bringing a grudge to work is unacceptable. For a new employee, hearing their employers fighting over who left the holiday home in a mess, is cringe inducing. Conversely, family members can complain that they feel ‘taken for granted’ and that the ‘team’ get all the positive feedback.” If you are in charge, make a conscious effort to reward and recognise everyone who does a good job.

4. Succession Planning
Always have a Plan B and talk to key stakeholders about it. Assuming that the next generation is going to take everything over can have devastating results. Business coaches tell horror stories of family relationships being destroyed, employees leaving en masse and asset fire sales because there was no plan.

Thinking about profit sharing and equity buy in for senior members of your team, who are outside the family group, can encourage loyalty and get them thinking about whether they would like to take things over one day.

5. Final Thoughts
For everyone involved, working in a family business has its advantages and disadvantages. Taking the next step and bringing on new people can be an incredibly rewarding experience. The key thing is to stay focused on why you are in business and remember to get the basics right so everyone in your family business can flourish.

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