Help Family Member Employees Find Their Place

Running a family business can be rewarding, but you must balance personal commitment to relatives with the company’s needs. Otherwise, you risk damaging your company’s bottom line and staff morale. 

Fitting Family Members into Your Business

You might feel pressured by blood ties to hire family members, and, in some instances, they may be a good fit. In a best-case scenario, your relative handles assignments and responsibilities flawlessly.

But what happens if you hire a relative who doesn’t have the skills the company needs? Or perhaps a relative loafs on the job or feels entitled to special privileges. Although these situations aren’t good for business and can demoralize the rest of your staff, family ties may keep you from firing the culprit.

Here are a few steps you can take to help turn things around:

Train and counsel. Cultivate a talent that will contribute to the business. Let’s say the relative is in management and has poor people skills but is a whiz at numbers. Offer some accounting training and move the employee to that department.

Assign projects. Give the family member tasks that can benefit the company, reduce negative contact with other staff members and provide an opportunity to develop skills you need.

Mentor. To help your relative gain skills, arrange for him or her to work with a nonfamily member who’s a top producer.

The key is transforming an unenthusiastic or minimally skilled relative into a productive employee as quickly as possible. The sooner this is accomplished, the less likely you are to lose key employees and managers.

Addressing Nonfamily Workers’ Concerns

Companies plagued by a sense of nepotism among nonfamily staff members may lose high-performing workers if they’re not careful. Nonfamily employees are likely to leave if most promotions go to relatives. If you’re experiencing high turnover, exit interviews can help determine whether the root cause is a real or perceived feeling that your company’s policies differ for relatives and outsiders.

A nonfamily member may never rise to the highest ranks in your company. However, you can structure career paths that appeal to outsiders and provide your business with the top-level staff you need. Nonfamily members may be the right fit for certain position. Consider whether expansion would help you take advantage of family and nonfamily talent.

It’s also important to review your compensation policies to ensure salaries, benefits and incentives reflect the value of your top performers, regardless of blood ties. However, surveys have shown that compensation isn’t always the primary issue when employees quit. In some cases, staff members may place a higher value on opportunities for advancing within the organization, contributing new ideas and being involved in management decisions.

Balancing Bloodlines and Business

Running a success family business requires more than just good intentions — it demands structure, fairness and a willingness to put the company’s needs first while you’re in the workplace. By developing the talents of family members, setting clear expectations and creating meaningful opportunities for nonfamily employees, you can build a work environment that values contribution over connection. When everyone is empowered to succeed, your business is more likely to grow, retain key staff and uphold the legacy you’ve worked so hard to build.