Blog: Resisting the Pressure: Managing Family Requests to Join the Business

Family businesses are built on trust, shared values, and a sense of legacy. However, these qualities can also create challenges when family members request to join the company, especially if they lack the skills and experience necessary for the position. Navigating these requests requires diplomacy, professionalism, and a firm commitment to the business’s success.

Balancing Family Expectations and Business Needs

Family members often assume that they have an automatic right to be part of the business, especially if it has been passed down through generations. However, the long-term health of the company should take precedence over personal obligations. Business consultant and author Henry Hutcheson suggests that successful family businesses establish clear hiring policies that apply equally to both family and non-family members (Hutcheson, 2018).

To balance family expectations with business needs, companies should:

• Set Clear Criteria for Employment: Establish objective job requirements, such as education, experience, and relevant skills.
• Implement a Standard Hiring Process: Require all applicants, including family members, to go through the same interview and evaluation process.
• Encourage External Experience: Many successful family-run businesses require family members to gain work experience outside the company before joining.
• Define Roles and Responsibilities: If a family member is hired, ensure their job title and duties are clearly outlined to prevent conflicts and confusion.

Saying No Without Damaging Relationships

Declining a family member’s request to join the business can be difficult, but it is possible to do so while maintaining positive relationships. Business coach Mitzi Perdue, in her book How to Make Your Family Business Last, emphasizes the importance of open and honest communication (Perdue, 2017). She suggests framing the conversation around what is best for both the individual and the company.

Here are some ways to handle these discussions:

1. Express Appreciation: Thank the family member for their interest and acknowledge their enthusiasm.
2. Be Honest but Kind: Explain why their skills and experience do not align with the company’s current needs.
3. Offer Alternatives: Suggest professional development opportunities or roles where they could develop the necessary qualifications.
4. Keep the Door Open for the Future: Encourage them to gain relevant experience and apply again later if appropriate.

While family businesses thrive on close relationships, allowing unqualified family members to join without proper vetting can create long-term challenges. By implementing fair hiring practices, maintaining transparency, and handling difficult conversations with empathy, business leaders can uphold the integrity of their company while preserving family bonds.

We help family-owned business navigate this challenge and more. Reach out to Beth Renga, Director of Consulting Services, for your complimentary conversation.

References

• Hutcheson, H. (2018). Dirty Little Secrets of Family Business. Greenleaf Book Group Press.
• Perdue, M. (2017). How to Make Your Family Business Last. Perdue Farms.