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Recruiting, Retaining And Motivating Staff In A Family Business


Family businesses need to position themselves as attractive propositions to appeal to new executives. It is well documented that many family businesses struggle moving towards professionalising the business in terms of the people employed due to the very nature of them being family businesses.


In essence, family businesses need to position themselves as attractive propositions to appeal to new executives who may have never previously ventured into the world of family business where there is the inevitable overlap between the family and the business.


For many professionals, moving from a totally corporate world to one where the family involvement can have significant involvement and influence over many aspects of the day-to-day operations, and where emotions can easily flow over into the business, the decision is not easy. Add to the mix that recruitment is one thing, retention and motivation are other things altogether and again an area where family businesses can struggle.


Adding to the family skills mix and growing the family business often necessitates looking to outsiders to help the business grow.


So what can family businesses do to increase their chances of success when it comes to employing and engaging with non-family executives?


Some of the key steps that family businesses need to adhere to include the creation of a clear and transparent process for managing all staff, one that is seen to be effective and fair and that ensures that individuals are appraised appropriately and on a timely basis. Things to consider include:

  • A clear set of objectives for everyone

  • Live the process and make sure it is respected and real- managing people is the role of line management and not HR

  • Appraisals and rewards need to be linked

  • Understand the motivations of management and staff

  • Recognise and celebrate achievements

  • Provide opportunities for career progression

  • Create a framework for training and personal development to bring out the best in everyone – offer mentoring or coaching to allow everyone to maximise their potential

  • Make the most of the working environment

  • Keep abreast of market rates and salary levels

  • Clear communication is paramount

  • Stick to the rules

Paul Andrews, Founder and Managing Director of Family Business United says, “Family firms have a wonderful opportunity to differentiate themselves through the way they treat their people. Often viewed as employers of choice with significantly higher retention rates than non-family firms, a reliance on loyalty alone is not enough."


"Everyone, be they family or non-family members, wants to be treated fairly. A transparent, clear and simple set of policies which are applied with rigour and demonstrate respect for the individual are essential. Moreover, a recruitment and development policy that is closely aligned to the strategy of the family firm is essential. If you can clearly articulate and agree upon a strategy, then leadership frameworks can be readily defined.”


Developing a proper framework for people should help to increase the attractiveness of the family business to non-family executives and to ensure that once the right individuals have been recruited, they are well rewarded, incentivised and happy, and therefore more likely to stay for the longer term too.


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FBU continues to expand and has a growing membership base around the world. Recognised as THE family business champions we have also gained recognition in both of the Top 100 Global Family Business Influencers list compiled by Family Capital. We are also the VOICE of the family business community, celebrating their contribution throughout the UK and beyond.

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Family Business United (‘FBU’) is an unparalleled rallying point and voice for the global family business community and an invaluable source of insight into the sector.  FBU is a resource for all, family businesses of all sizes and sectors, and their advisers, helping to raise the profile of the family business sector and to encourage greater awareness of the contribution that family firms make to the global economy through employment, income generation, wealth creation and charitable endeavours.

At FBU, everything we do is about the family business, creating the best resource available to help families in business get access to the resources and support they need to continue their family business journey, wherever it will take them.

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