SERIES: What’s the Plan?

There is a good chance that you have at least one family member working for your company. If you do, your employees will have a completely different dynamic. How do you handle the ins and outs of family businesses while remaining businesslike?

Nepotism is inevitable

One of the reasons you hire a family member is that you want to help them get ahead. Maybe the eventual goal is for him or her to take over from you when you retire or to buy you out at some point. Perhaps it’s to give them a job and some skills. Whatever your intentions, you hired them because they are family, and that’s nepotism. It’s not illegal, but it is fraught with complications.

For those employees who are not part of your family, the expectation is that family members will get ahead just because they are family—whether they deserve it or not. If this truly happens in your plant, it can cause non-family employees to lose heart over time. It doesn’t have to be that way.

What are you running?

If you hire Cousin Fred, but he doesn’t do much work or doesn’t have the skills to get the job done correctly, you have a problem. He’s a drag on your company and irritates other employees who have to pick up the slack. In such a situation, you have to step back and remember what your company is about, your core mission.

You are a business owner, an entrepreneur. You are running a company, not a charitable organization. Your customers depend on you to process their textiles efficiently and correctly. Your employees depend on you to run the business in a way that gives them job security and opportunities for professional growth.

Anything that hinders your core mission should be evaluated and corrected. That includes suppliers who don’t get you what you need on time, equipment that is not functioning properly, and, yes, Cousin Fred or any other employee who is not doing a proper job.

But he’s family!

It’s great to have family involved in your company. It can be a real bonding experience that strengthens the family. There’s nothing wrong with family in business. Just remember it is family in business. The emphasis is on the business, not the family.

Cousin Fred may take advantage of the family ties and neglect some of his duties in the company because he thinks you will cut him slack. He might turn up late, lengthen his breaks, or occasionally take home a few supplies. Forget for a moment that he’s Cousin Fred. Imagine he is just Fred Smith, who came in off the street. Would you tolerate this behavior from Mr. Smith?

Family must adhere to the same rules and expectations as any other team member. In fact, they have to be even more conscientious about the rules because other employees are watching to see if they follow them. A family member who behaves like a proper employee will reassure the rest of the people working in your plant and be a real asset to you.

Be the boss

Family comes with baggage. Aunt Madge will pitch a fit if you discipline her “baby” Cousin Fred. There are family dinners you’ll have to get through if you fire Fred. Some of these pressures (that don’t come with non-family employees) might eat at your ability to control a family member employee.

Put it aside. It is irrelevant to getting the work done on time and with skill. Remember that touchstone: you are running a business. If your whole goal is to keep Cousin Fred employed, maybe helping him find a place in a company other than yours is what needs to happen. On the other hand, disciplining Fred just as you would another employee may be the making of him. When he understands that he’s working at a job, not hanging out with you at your workplace, he will either shape up or leave.

Never lower your expectations of an employee because he or she is a family member. You control your company’s destiny; keep all aspects on track, and it will succeed. Especially with a happy team.