Family businesses are tricky things at the best of times. Running a business in itself is hard, without throwing in the added complication of familial relationships.
When those familial relationships are between parents and children, the dynamic can be even more difficult to navigate.
Yet there can be huge advantages to employing your own children in your family business so, if you can get it right, it could be one of the best moves your business makes on its path to growth.
In this blog, we’re going to examine some of the issues that might arise when you employ your own children in your family business, and look at what you might need to consider before employment, along with what you can do to resolve problems should they arise.
What Issues Might Arise From Employing My Own Children In My Family Business?
Employing your own children in your family business can be incredibly rewarding. Amongst some of the many benefits, the communication shorthand that exists between family members often means decisions can be reached quickly or new ideas can be posed and tried in a short turnaround time. What’s more, family members are usually guaranteed to have the best interests of the family business at heart, and ‘keeping things in the family’ means the profits and accolades are kept tight within the family circle.
However, with every benefit comes challenges, and working with your own children is no exception. As with everything in business, if potential challenges can be predicted and mitigated beforehand, it will better ensure the smooth running of your business.
Here are the some of the issues that may arise when employing your own children in your family business;
The Perception Of Favouritism
Employing your own children always leaves business owners open to allegations of nepotism. If you already employ other staff in the business, particularly if those employees have been with the business for some time, they may feel that your children coming into the company demonstrates favouritism. Existing employees may feel this is particularly unfair if your children are promoted to positions above them, especially if they haven’t been seen to ‘serve their time’.
The Perception Of A Lack Of Professionalism
Whilst the familiarity and ease of the relationship with your own children may benefit your working environment, it also has the potential to imply a lack of professionalism. An absence of firm boundaries or demarcation of a working relationship can cause issues, particularly if those boundaries become blurred
The Perception Of Disparity Between Skills And Job Role
Promoting your own children to positions of authority within your family business may seem like a sensible option and a way of keeping the firm within the family, but it can lead to problems, particularly if there is a mismatch between the skillset of the child (employee) and the demands of their role. If the offspring in question is not capable or qualified to do the job they have been promoted to, not only will it cause divisions with your existing staff, but it will also put your business at risk.
The Perception Of A Lack Of Motivation And Accountability
Whilst the hope is that your children will be just as motivated as you to invest in and grow the family business, the truth is that they equally may not be. The business may be you dream, not theirs. It is therefore possible that your children may be less motivated, and feel less accountable, than other employees in your business, and this could cause issues with productivity and performance.
What Can I Do To Prevent Or Resolve Issues Arising From Employing My Children In My Family Business?
Obviously, the ideal solution would be to prevent any of the above issues before they arise, and with proper planning that is entirely possible. However, should problems occur that were not foreseen, it’s important that you resolve them as quickly as possible, to prevent small niggles from growing and becoming unmanageable.
The following steps should be taken when employing your own children in your family business;
Clearly Define Roles And Expectations
Whilst this is important for any employee you take on, it’s particularly crucial when employing your own children. Provide a clearly written job description for the role and ensure your child has both read it and agreed to it. The job description should be signed to show it has been acknowledged and should be stored somewhere central so that it can be accessed at any time.
Furthermore, it’s important to set out the expectations you have as an employer; what standards do you expect your children to meet with regards to things such as performance, professionalism, behaviour, communication, what they should call you at work (mum or dad does not tend to go down well!) and even dress? Ensure your children are aware that these standards are expected to be met by everyone in your employment, to ensure there is no room for accusations of either favouritism or discrimination.
Provide Training and Development Opportunities
It’s crucial your children are provided with the same training and continual professional development opportunities as any other members of staff to ensure they are equipped to do their job to the best of their abilities. Never assume your children will be able to do the role expected of them by osmosis or because you can.
This will likely need to include a mix of on-the-job training, peer-to-peer mentoring or external training/education, to ensure they have the necessary skills and qualifications for their roles.
Encourage Open Communication
Employer/employee relationships always work best when forthright dialogue is permitted. Work to create a workplace environment where open and honest communication is encouraged and ensure the appropriate channels are accessible by your employees at all times. Aim to address any conflicts or concerns promptly and competently, and ensure communications remain both civil and professional.
This is naturally important when dealing with employees who are your own children, particularly if the way you communicate at work might be different to the way you communicate at home. However, it’s equally important that any other employees you have are granted the same privileges, as this will diffuse any potential accusations of nepotism and allow any arising grudges to be dealt with before they fester.
Implement Performance Evaluation Systems
If you are planning on promoting your own children up the ranks of your company, particularly if those promotions might occur in favour of family members over existing employees, then it’s vital any such promotion is seen to have been granted on merit, not favouritism.
Ensure you have in place objective performance reviews and evaluation processes that are applied regularly and consistently to all employees, including family members. This will help ensure all employees are held accountable equally and that promotions or rewards are granted on merit.
Promote Teamwork and Collaboration
It’s always better to avoid rather than rectify, so try to create a strong workplace culture with a cohesive and collaborative team. This will help to ensure that all your employees understand and value their place in the business and resentments or accusations of favouritism towards family members are prevented.
Children newly employed in the business could perhaps be partnered with a long-standing member of the team to provide peer-to-peer support and on-the-job training, and project management tasks could be shared to promote shared ownership and responsibility. Rewarding staff and recognising achievement can also go a long way to ensuring that all team members feel valued and understand what they bring to the table.
Seek External Advice or Mediation
Naturally, even with the best planning in the world, issues will inevitably arise when employing your own family members. In these situations, particularly if conflict is involved, it’s crucial that the issue is dealt with swiftly and impartially, preferably by a professional who is not personally invested. This is the area where the parent/child relationship potentially comes most into play, and it can therefore be tricky to attempt to resolve such predicaments internally.
In such circumstances, it might be best to seek advice from an HR professional, and ensure the problem is addressed by an impartial party, such as an external mediator. This will not only guarantee the matter is resolved quickly, but it will also safeguard the relationship between you and your child, as well as the relationship between you, as the employer, and the rest of your employees.
Contact Metis HR For Advice On Employing Your Own Children In Your Family Business
Are you thinking of employing your own children in your family business? Or do you already employ your children and you are experiencing issues? If so, Metis HR can help.
Metis HR is a Rossendale based HR consultancy, which protects employers from their own employees, even if those employees are your own family! We can provide top-rate HR advice and support to you on terms that work best for you.
Please speak to one of our experienced team members today by using the contact form on our website, emailing info@metishr.co.uk or phoning 01706 565332.
