Family firms are the backbone of many economies worldwide, contributing significantly to employment and economic growth. However, alongside their successes, they often face unique challenges, one of the most prevalent being conflicts within the family. These conflicts can escalate and jeopardise the business and family relationships if not addressed. Understanding the dynamics of conflict in family firms and implementing effective strategies to manage them is crucial for their long-term sustainability and success. Understanding the Roots of Conflict Conflicts in family firms can arise from many sources, often stemming from the intersection of family dynamics and business interests. Some common causes include: 1. Succession Planning : Disagreements over who will lead the company and how leadership transitions occur can lead to tension among family members. 2. Decision Making : Differences in management styles, goals, and visions for the company can result in conflicts over strategic decisions. 3. Ownership and Equity : Disputes over ownership shares, dividends, and financial distributions can strain family relationships and create power struggles. 4. Roles and Responsibilities : Unclear delineation of roles and responsibilities among family members working in the business can lead to conflicts over authority and accountability. 5. Communication Breakdowns : Poor communication practices can exacerbate conflicts, as misunderstandings and misinterpretations often arise within family dynamics. Managing Conflict While conflicts in family firms are inevitable, they can be effectively managed through proactive measures and open communication. Here are some actionable strategies: 1. Establish Clear Governance Structures : Implementing formal governance structures, such as family councils or advisory boards, can provide a framework for addressing conflicts and making decisions collaboratively. 2. Define Roles and Responsibilities : Clearly defining roles, responsibilities, and expectations for each family member involved in the business can minimise ambiguity and reduce potential sources of conflict. 3. Foster Open Communication : Encourage transparent and honest communication among family members by creating opportunities for regular dialogue and conflict resolution discussions. 4. Seek External Mediation : In cases where conflicts escalate, and internal resolution proves challenging, seeking the assistance of external mediators or family business advisors can facilitate constructive dialogue and resolution. 5. Embrace Conflict as an Opportunity : Recognise that conflicts, when managed effectively, can lead to positive outcomes, such as innovation, increased understanding, and stronger family bonds. The Role of Healthy Conflict While conflict is often perceived as detrimental, it can also catalyse positive change and growth within family firms. Healthy conflict, characterised by constructive debate and respectful disagreement, can stimulate creativity, foster innovation, and lead to better decision-making processes. By reframing conflict as an opportunity for learning and improvement, family firms can harness its potential to drive organisational success. Conflicts are inherent to family firms, but they need not be destructive. By understanding the root causes of conflict, implementing effective management strategies, and embracing conflict as a catalyst for growth, family firms can navigate challenges successfully and ensure the long-term sustainability of both their businesses and family relationships. Family firms can turn challenges into opportunities and thrive in an ever-changing business landscape through proactive governance, open communication, and a willingness to address conflicts head-on. About the Author - Kim Adele-Randall is a Business Growth Consultant helping to unlock growth, drive transformation and empower businesses to scale and succeed. Find out more here

There are significant challenges in attracting young employees. It is still possible to recruit the best, but only with a new approach. Gen Z consultant Alex Atherton explains how. Recruitment and retention are key issues for businesses as indicated by the results of the 2022 Family Business United survey. The issues of attracting and keeping young staff are particularly acute. Key Challenges Facing UK Family Firms: The Economic Climate (82%) Rising Costs of Labour & Raw Materials (60%) Recruiting, Retaining & Motivating Staff (59%) Mental Health & Wellbeing (35%) Environmental Issues (32%) Regulation, Red Tape & Legislation (31%) Staff Shortages/Vacancies (30%) Source: Family Business United 2022 annual survey: 'Determining the Family Business Agenda' Gen Z includes those in their mid teens to late twenties. By 2025 they will represent a quarter of the UK workforce, and be larger than the Boomers (the youngest of whom turn 60 this year). What can family businesses do about this problem? Two key areas are identified below. 1 - Be Clear, Be Thorough If you want to recruit, retain and motivate the best you need to be ultra-clear. Young staff expect to see the detail about all aspects of the job. You likely need to have more information available than you think is reasonable. Collectively clarity and detail generate transparency, and that is the starting point for trust. Gen Z is too young to remember a time when they were not bombarded by content. Filtering out what is not useful or truthful absorbs energy. They can be deeply suspicious of anything that looks too polished, or incomplete. Video has a further advantage, in that it conveys a greater degree of authenticity. The most able Gen Zs are looking for organisations who get this right and seek the best in doing so. It may be more difficult to cut through these days, but there is no need to compromise on quality. Gen Zs are looking for ambitious organisations who seek high-calibre candidates. Demonstrating the detail through has one other major advantage. It gives the impression you are more likely to survive whenever the next economic crisis or pandemic hits. Gen Zs value those who think ahead. 2 - Be Who You Say You Are The battle for retention should start as soon as your Gen Z employees arrive and not let up. The key is that they need to find what was described on appointment. A high proportion of Gen Z expect to change their job in the next two years. It varies significantly between industries and averages between 40-50%. This is usually taken as either restlessness, or always seeking a better offer. Both of these can be true. It is also true that when the pandemic hit there was a lot of ‘last in, first out’, and Gen Z was hit the hardest. An expectation that they will leave does not mean it came through their choice. Young staff also need to see that you are interested in their initial experience and where expectation did not meet reality. If they find one unpleasant surprise after another, then word will spread quickly including to your next set of potential recruits. Websites such as Glassdoor, which describe employees’ experiences in their organisation, are key sources of information. Gen Z needs to see that you take and act upon feedback from your employees, not least because they assume you want to improve as an organisation. And if you don’t, why would they stay? Every organisation has vulnerabilities in times of rapid change. Sharing them not only generates trust, but can also provide opportunities for your youngest employees to collaborate in dealing with them. This is a generation that expects to contribute. Family businesses have wonderful stories to tell. Those who tell them well, and are clear and genuine about both their values and what their future holds, will be in a strong position. About the Author: Alex Atherton is a former secondary school headteacher. He talks, writes and consults about the generation who attended the schools he led - his Gen Z series is at www.alexatherton.com/blog .

From a "Family-Owned Business" to a "Business Owned by Family" and eventually back to a "Feeling Owned Business," this journey encapsulates a profound transformation in the ethos of familial and business relations. Initially, the business was built upon a foundation of prioritizing emotional connections, fostering a culture where familial bonds were paramount, even above profit. However, as success burgeoned and family members dispersed across different cities, a palpable sense of isolation crept in, giving rise to a culture of individualism and self-interest. In India, where the allure of worldly success, particularly wealth, often accompanies a cautionary tale of ego and power, this narrative mirrors a familiar societal paradigm. Yet, within this context, there emerges a tale of resilience and redemption, where strong familial ties and a commitment to values lay the groundwork for enduring sustainability. Initially, the familial fabric was woven with threads of love and unity, despite the constraints of limited resources. However, as the business expanded and new familial relations were forged through marriages, the tapestry began to unravel. Survival mindset seemed to have creeped in. Diverse cultural backgrounds introduced subtle shifts in dynamics, leading to a gradual erosion of shared values and a focus on individual gain—a transition from "We to Me & Myself." Amidst these changing tides, a poignant incident serves as a catalyst for introspection. The eldest cousin's daughter, arriving early to visit her parents, finds herself inadvertently neglected, her presence overlooked amidst the bustle of daily life. A simple act—ordering a pizza—sets in motion a series of events that culminate in a heartfelt reunion, reminiscent of bygone days. The pizza gets delivered to a cousin’s children who start enjoying till he looks at the name & figures out what has happened. She says it fine but smiles inside at all the action by his family to make up. The whole house comes down & it seems like an open townhall. This daughter, attuned to the shifting familial landscape, takes it upon herself to reignite the flames of empathy and cooperation within her kin. Gathering for a candid dialogue, the family confronts the divergence from their foundational principles. She raises a point to say that some of us are cribbing about the funds we contribute for running the charitable hospital established by grandpa which is like peanuts if we look at our earnings. They recognize the need to bridge divides, both within the family and across their business ventures. As they delve into discussions, they unearth deeper issues of health, collaboration, and societal responsibility. Reflecting on the wisdom of the founder, they realign their priorities, shifting from a pursuit of individual success to a collective ethos of prosperity and benevolence—"Live & let live." Embracing this ethos, they institute quarterly family meetings as a forum for fostering communication and unity. An external facilitator is enlisted to streamline operations and ensure alignment with shared objectives. Additionally, they commit to prudent financial stewardship, minimizing excesses and redirecting resources towards collective betterment. Next generation participation in the business is moved to merit over entitlement. All children must go outside the family business for some work experience was agreed upon. In this transformation, they find not only renewed purpose but also a rekindled sense of belonging—a return to a "Feeling Owned Business." As they navigate the complexities of wealth and power, guided by the founder's values, they pave a path towards enduring sustainability and generational prosperity. United by a shared commitment to family, community, and legacy, they stand poised to weather the trials of time, their journey a testament to the enduring power of love and kinship in the face of adversity. About the author - Naveen Khajanchi (EMCCC – INSEAD) is an Executive Coach, creator of ATM for Happiness and the CEO of a leadership search firm.

Family businesses carry a unique charm and a set of challenges when it comes to employing staff. While they often excel in fostering a strong sense of belonging and loyalty, and there are plenty of examples where family businesses have many long standing members of staff, as well as firms where generations of the same family have worked for them, but they also face hurdles in recruiting the right talent and keeping employees motivated. Understanding The Strengths Of Family Businesses Family businesses are known for their tight-knit culture and deep-rooted values, which create a sense of unity and commitment among employees. The familial atmosphere often leads to strong relationships within the organisation, fostering trust and loyalty that are hard to replicate in other types of businesses. This strong sense of belonging can be a significant motivator for employees, driving them to go above and beyond in their roles, and this can be a strong asset when it comes to employing people to work in a family firm. Recruitment Challenges Despite the many strengths of family businesses, they can face unique challenges when it comes to recruitment. One common issue is the perception of favouritism or nepotism, where family members may be given preferential treatment in hiring processes. This can lead to resentment among non-family employees and create a sense of inequality within the organisation. Additionally, family businesses may struggle to attract external talent due to their perceived insular nature, making it crucial to showcase a fair and inclusive recruitment process. Retention Strategies For Family Firms Retaining top talent is a critical aspect of sustaining a successful family business. While the familial culture can contribute to employee retention, it is essential to complement this with professional development opportunities and clear career paths. Investing in training programmes, offering competitive salaries, and recognizing employees' contributions can help foster a supportive work environment that encourages long-term commitment, and it is always a good idea to encourage open and honest communication about job roles, promotions and appointments too. Motivating Employees In Family Businesses Motivating employees in family businesses involves striking a delicate balance between recognising their individual achievements and emphasising the collective success of the business. While familial ties can provide a strong sense of purpose, it is vital to instil a merit-based approach to rewards and recognition. Celebrating milestones, providing growth opportunities, and fostering open communication can keep employees engaged and motivated to contribute their best to the business. As family businesses navigate the complexities of recruitment, retention, and motivation, they must evolve with the changing landscape of work dynamics. Embracing diversity and inclusion, implementing transparent HR practices, and adapting to the expectations of a multigenerational workforce are key steps in ensuring the long-term success of family firms. By addressing these challenges head-on and leveraging their inherent strengths, family businesses can create a harmonious work environment that attracts top talent and fosters continuous growth. Recruitment, retention, and motivation are integral components of building a thriving workforce in family businesses. By leveraging their familial culture as a foundation and implementing strategies to address recruitment challenges, retain top talent, and motivate employees, family firms can create a supportive and productive work environment. Balancing tradition with innovation, loyalty with inclusivity, family businesses can continue to thrive and adapt in an ever-evolving business landscape. In the realm of family businesses, the nuances of recruitment, retention, and motivation play a crucial role in shaping the overall success and sustainability of the business. By recognising the strengths of familial culture of the business, addressing recruitment challenges, developing and implementing effective retention strategies, and fostering employee motivation, family businesses can navigate the complexities of workforce management with resilience and vitality.

Family businesses are often seen as a unique blend of personal relationships and professional endeavours. The dynamics within these organizations can be complex, especially when it comes to decision-making. Who really has the power to influence and shape decisions in a family business? The Family Dynamics At Play In a family business, the lines between personal and professional lives are often blurred. Family members involved in the business may have longstanding relationships that pre-date their roles in the company. These personal dynamics can influence decision-making in subtle yet significant ways. Personal biases, rivalries, and alliances within the family can all impact how decisions are made and implemented within the business. The Generation Factor One key aspect of decision-making in family businesses is the generational divide. As ownership and leadership pass from one generation to the next, different values, priorities, and perspectives come into play. The older generation may hold onto what are perceived to be more traditional methods and practices, while the younger generation may push for innovation and change. Balancing these contrasting viewpoints is essential for ensuring the long-term success and sustainability of the family business. The Influence Of Key Stakeholders Beyond family members, other key stakeholders can also wield significant influence in decision-making processes. This may include non-family executives, advisers, investors, and even long-standing employees. Their expertise, experience, and external perspective can provide valuable insights that shape the strategic direction of the business. Balancing the interests and input of these diverse stakeholders is crucial for making well-informed decisions that benefit the business as a whole. The Role Of Leadership & Governance Effective leadership and governance structures are essential for facilitating decision-making in family businesses. Strong leadership sets the tone for the organisation and guides the decision-making process. Clear governance frameworks help define roles, responsibilities, and decision-making authority within the business too. By establishing transparent and accountable governance practices, family businesses can navigate potential conflicts and ensure that decisions are made in the best interest of the company. Building Trust & Communication At the heart of successful decision-making in family businesses lies trust and communication. Open and honest communication among family members and stakeholders is essential for fostering collaboration and consensus-building. Trust is the foundation upon which relationships are built, and it is crucial for overcoming differences of opinion and working towards common goals. By prioritising trust and communication, family businesses can create a positive decision-making environment that supports the long-term growth and success of the enterprise. In family businesses, decision-making is a collaborative effort that involves multiple stakeholders and factors. While family dynamics, generational differences, and external influences all play a role in shaping decisions, effective leadership, governance, trust, and communication are the cornerstones of successful decision-making in these firms. By navigating the complexities of family relationships and business operations with clarity and transparency, family businesses can harness the collective power of their members to drive innovation, growth, and prosperity for generations to come. Decision-making is a delicate dance of relationships, perspectives, and influence. By understanding the dynamics at play and fostering a culture of collaboration and communication, family businesses can leverage their unique strengths to make strategic decisions that propel the business forward. Who holds the power to influence decisions in a family business? The answer may lie in the collective wisdom and shared vision of its members.

It’s no secret that more and more of us are choosing not to have children. The UK birth rate has declined to the lowest levels in over a decade, while the average age of parents has hit a record high. It’s an issue that economists and some politicians are beginning to sweat over, concerned about the future implications this will have on employment and the UK economy. It’s left many wondering what key factors are causing younger generations to choose not to have children, or to have them later in life, and what steps the government and businesses need to implement to support this new outlook. Recent data by charity and awareness group Pregnant Then Screwed has shone a light on one of the areas that may be causing fewer couples to consider having children – UK paternity law. They found that only 29% of fathers could access enhanced paternity leave, with just over half of fathers taking two weeks or less away from work. With the vast majority of working mothers taking statutory maternity leave, and only 10% receiving occupational maternity leave (leave paid for by the employer), young adults are feeling the financial strain of raising a family now more than ever. With expert advice from the employment law specialists at Beecham Peacock , we’ve uncovered the practices that businesses need to implement to comply with paternity law, what knock-on effect it can have for your workforce and, ultimately, why it matters for the UK employment sector. Key findings: The UK birth rate is at its lowest since 2002. The average age of new parents is significantly higher than the generations before them. The UK has the lowest rates of statutory paternity leave in Europe. 62% of fathers take no paternity leave and one-third return to work early. Money has been reported as the biggest concern for those considering raising a child. What’s happening to the UK birth rate? Some politicians, most recently MP Miriam Cates, have highlighted the dramatic shift in birth rates and the age of new parents over the last decade. Now at their lowest since 2002, when they sat at a rate of 596k, the most recent UK birth statistics reported 600k births. To put these figures into context, the post-war baby boom in 1920 saw 957k births, while baby boomers born in 1964 were one of 875k births that year. These comparisons are significant, especially when you consider the average age of new parents from their respective generations. In 1964, the average age of a mother during childbirth was 27.3 in England and Wales. This is drastically younger than more recent data, which reveals the average age of mothers during childbirth as 30.9. This is reflective of a trend we are seeing across many sectors, where younger people are reaching the so-called ‘traditional’ milestones of adulthood later than previous generations. The generational age gap between first-time buyers is getting wider, stalling wage growth since 2008 continues to worsen and the cost of living crisis continues to affect the savings of young adults. In short, raising a child is costly and cost is at the forefront of struggling young adults’ minds now more than ever. So, with the government worried about the declining birth rate’s long-term effect, how does the law protect and encourage potential parents who may be dismayed by the thought of leaving work to raise a child? What are the current UK paternity laws? The UK has the least generous paternity laws in Europe, so it is important to fully understand the rights of employees to avoid potential disgruntlement or legal action. Lisa Branker, Head of Employment and HR at Beecham Peacock, outlines the key aspects to remember when it comes to paternity leave requests: “All fathers in the UK are eligible for statutory paternity pay, which currently sits at £184.03 or 90% of the employee’s average weekly earnings, depending on which is lower. Paternity pay is subject to tax and NI deductions,” Lisa explains. “If you’re unsure, employers can calculate exactly how much paternity an employee will receive through the government’s maternity and paternity calculator. It’s a brilliant resource for businesses.” “Fathers can take one to two weeks' leave. If it’s two weeks leave, this can be taken together or separately. This doesn’t change if the employee is having multiple children, such as twins,” she continues. “Once a business has been informed of a paternity leave request, the start date of the leave must be the actual date of the birth. Leave must finish within 52 weeks of the birth, or due date if the baby arrives earlier than expected.” For adopting fathers, paternity leave is available but there are different stipulations to consider. “For an adopting father to take paternity leave, the employee must have been continuously employed by the business for at least 26 weeks up to the end of any day in the qualifying week, also known as the week they were matched with a child,” says Lisa. “If they are adopting from overseas, the employee must still have been employed for at least 26 weeks, but the qualifying week is the week that the child enters the UK, or from when the employee wants the pay or leave to start." “For full eligibility, the father must be classed as an employee and earn an average of £123 gross over an eight-week relevant period. They must also give the employer the correct notice and take time off to look after the child.” Why does paternity leave matter? Put rather bluntly by MP Miriam Cates, “The economic consequences of this shift are mind-blowing.” As far as the economy goes, it’s right to show concern over the state of the current paternity laws. New data analysis from the Centre for Progressive Policy (CPC) has found that countries with more than six weeks of paid paternity leave have a smaller gender wage gap (by 4%) and a smaller labour force participation gap (by 3.7%) than other countries. Closing these gaps by the same percentage in all authorities would increase the UK’s economic output by £23bn. There is, however, also a human element to this issue – one which should not be overlooked as less important than the economy. Taking time off work to raise a child causes stress for families who receive a lower rate of leave. New research from MetLife has found that one in five parents fear taking time off work to look after their children. Additionally, Maternity Action found that money was the biggest concern for parents about having a child, with 71% citing household income as a cause of stress. This concern around finances causes many fathers to forego paternity leave altogether, with more than 62% of fathers taking no leave at all. How better paternity leave can support your business? Research has shown that stronger paternity compensation can be a significant driving factor in making job offers more competitive. Gen Z and Millennial workers are far more likely than other generations to leave a job for another post that has stronger paternity rights. 52% of Gen Z and 55% of millennials say parental leave would be a consideration in finding new employment. Parental leave isn’t a rest from employment, it’s an entirely new kind of work. 32% of fathers don’t feel ready to return to work after taking paternity leave, noting tiredness and stress as contributing factors. Enhanced paternity leave can give returning employees the space to be more productive, increase loyalty to the business and improve their well-being. “When employees feel tired, rundown and stressed, they are more likely to take sick leave,” says Lisa. “One in five working adults take time off due to stress in the UK, so finding ways to mitigate this can lead to higher retention of work.” How can businesses implement a fair paternity policy? “Make sure your employees are aware of all their options,” says Lisa. “One policy many are unaware of is Shared Parental Leave and Pay. This allows employees to share their parental leave, splitting the time and pay into blocks in order to equally share the responsibility of raising a child." “A couple can split up to 50 weeks of leave and 37 weeks of pay, but they do have to take less maternity or adoption leave and pay to do so.” Businesses can also stand out from the competition by offering enhanced paternity pay, making their workplace more desirable in a competitive working landscape. “Last year we started to see more UK companies announce their enhanced maternity and paternity leave,” Lisa tells us. “Bouygues UK implemented eight weeks paternity leave on full pay, whereas retailer Marks & Spencer announced six weeks full paternity pay." “As these businesses take steps to strengthen their parental leave policies, the positive reaction from employees, customers and the press means more companies are following suit.” As we look towards the second half of 2024, we can expect to see more businesses taking a closer look at parental leave policies – and with the result of a general election inbound, this is a topic of debate that won’t be going away any time soon. About Beecham Peacock - Established in 1953, Beecham Peacock is one of the North East’s leading law firms with a wealth of experience in a myriad of different legal fields. Its team of expert solicitors includes specialists in wills, trusts and probate, personal injury, family law and employment law. The firm also offers a wide range of other legal services.

As family-owned companies grow, they face increasingly complex challenges, and none may be as important as the issue of executive remuneration. Attracting and retaining top talent while ensuring that pay structures support long-term business growth is a delicate balance. How a family business handles executive pay can either accelerate leadership development and smooth generational transitions or serve as a roadblock to future success. Advantages of Family-Owned Firms in Executive Pay One of the distinct advantages family businesses have is the freedom to design their executive pay packages. Unlike public companies that are under constant scrutiny from shareholders, private family businesses can create tailored, long-term incentive plans. This flexibility allows remuneration to be strategically aligned with the unique goals and values of the family enterprise. There’s no pressure to follow the same "one-size-fits-all" approach often seen in public firms, where plans are often driven by external expectations rather than what’s best for the company. Moreover, family businesses can offer executives a more stable environment when it comes to equity-related remuneration. With private stock valuations less affected by the fluctuations of the public markets, long-term incentives tied to the value of the business become more meaningful. This stability can be very appealing to senior executives who prefer a long-term view over the short-term volatility often associated with public companies or the short-term value maximisation preferred by private equity. Perhaps one of the most underrated advantages is the culture within family businesses. The sense of legacy and long-term thinking creates a work environment that feels more personal and less political than what executives might experience in larger, more bureaucratic public firms. This positive culture often becomes a key selling point for talent looking for meaningful work and long-term loyalty. The Challenges of Executive Pay in Family Businesses However, there are challenges as well. One common issue is that remuneration governance can be more informal in family firms. Without the independent oversight required in public companies, discussions around executive pay can become highly personal and, at times, contentious. Many family businesses lack a structured process for setting pay levels, and the involvement of family members in these discussions can complicate matters. In some cases, the executive remuneration packages in family firms are not as transparent as they could be. Executives may not fully understand the total value of their remuneration, particularly with regards to long-term incentives or unique features like phantom stock. This can lead to confusion and dissatisfaction, as the full picture of their rewards might not be clear. Another significant challenge is offering competitive long-term incentives. Public companies often have deeper pockets and are more willing to share equity with senior management. Family businesses, understandably, may be reluctant to dilute ownership, which can make it harder to offer the same level of rewards. Yet, remuneration that falls short of market rates can make it difficult to attract and retain the best talent. How to Get Executive Remuneration Right So how can family businesses improve their approach to executive pay while playing to their strengths? Formalise the Pay Governance Process : While it may be tempting to keep things informal, introducing a clearer structure to remuneration discussions can make a big difference. This might involve establishing a remuneration committee, even if it's only made up of family members, and ensuring they are equipped with up-to-date market data and best practices. Communicate Clearly and Transparently : Make sure executives fully understand the value of their remuneration packages. The benefits of unique pay structures can only be felt if they’re appreciated. Clarity around how long-term incentive plans work is essential for aligning executive goals with those of the company. Develop a Cohesive Remuneration Strategy : Don’t just rely on the goodwill and loyalty of long-serving executives. Family culture is important, but it doesn’t replace competitive remuneration. A well-thought-out remuneration strategy should cover base salary, annual incentives, long-term incentives, and benefits, ensuring that all elements fit together coherently. Stay Informed About the Market : Just because a family business operates differently from its public pr private equity counterparts doesn’t mean it should ignore the market. Regular benchmarking against comparable firms, both private and public, ensures that remuneration remains competitive and relevant. A Balanced Approach to Remuneration In the end, family-owned companies have a unique opportunity to craft executive remuneration packages that align with their long-term vision and values. By leveraging their flexibility, offering a compelling culture, and maintaining a clear, structured approach to pay, they can attract the talent needed to secure the business's future success. Balancing these advantages with thoughtful solutions to common challenges is key to winning the war for talent and continuing to grow across generations.

Leaders who say one thing but do another aren’t just letting their teams down — they’re harming their own performance too, according to new research from Durham University Business School. The study shows that acting inconsistently with stated values often causes leaders to feel shame, leading to avoidance behaviours and poorer task performance. This can undermine overall leadership effectiveness. Conducted by Dr Anders Friis Marstand, Professor Olga Epitropaki and Dr Ziya Ete of Durham University Business School, alongside a number of co-authors, the research examines the personal impact of 'word-action misalignment.' This occurs when leaders’ behaviours fail to live up to their rhetoric and commitments, creating internal conflicts and emotional distress. The researchers conducted three studies with over 800 managers, using real-world incident recollections and experimental tasks. They aimed to understand how leaders emotionally and behaviourally respond when their actions do not match their stated intentions, and the impact this has on their work, motivation, and relationships with colleagues. They found shame to be a common emotional response when leaders reflect on misalignment. This, the researchers say, leads to withdrawal, avoidance of colleagues, and underperformance, especially for those with a weaker belief in their ability to influence outcomes, often resulting in a damaging cycle of disengagement. “Our findings show leaders are deeply affected by their own inconsistencies,” says Professor Marstand. “The shame caused by word-action misalignment can harm how leaders feel and perform, highlighting the need for greater self-awareness and organisational support to help leaders manage these challenges.” Anders Friis Marstand further notes that “this is critical as leaders must engage with their teams, but their shame hinders them from doing so.” In avoiding such circumstances, the study also stresses the importance of organisational structures that enhance leaders’ autonomy and control, especially in fast-changing environments. Encouraging leaders to take ownership and make meaningful decisions can reduce the negative effects of misalignment and improve resilience. Professor Epitropaki adds: “Understanding and addressing the emotional impact of misalignment is crucial." "Leaders who can acknowledge their struggles openly are better positioned to grow and rebuild trust with their teams.” The researchers recommend organisations should implement practical measures such as development focused on emotional intelligence, resilience training, and job designs that increase leaders’ control over decisions and outcomes, in order to support sustained performance and wellbeing.

58% of UK business leaders report that they find it more difficult to hire skilled mid-level talent now compared to three years ago. With a quarter stating they are having to pay a premium for this talent. Research from global talent solutions provider Robert Walters indicates that a sustained decline in graduate and entry-level recruitment is contributing to hiring challenges. As fewer professionals enter the workforce at the early career stage, organisations are now experiencing increased competition and costs for mid-level talent. Chris Eldridge, CEO of Robert Walters UK&I, comments: “Our findings emphasise the risks employers face when they hastily reduce entry-level and graduate intakes. It isn’t merely a case of short-term cost-saving; large-scale cuts lead to inflated future costs and jeopardise the health of talent pools. This trend isn’t new – looking back to 2022 offers us a clear example of the issues which can arise.” 2022’s Mid-Level Wage Inflation ‘Boom’ 2020 saw major cuts to graduate and entry-level hiring, with a survey from High Fliers Research revealing how graduate vacancies that year were cut by approximately 15% compared to 2019 levels. The sharpest annual drop in graduate recruitment recorded since the financial crisis of 2008-2009. Data from Robert Walters Market Intelligence shows that wages for intermediate positions experienced their highest growth in 2022, reaching a six-year peak with a +5% year-on-year increase. Chris observes: "The sharp rise in mid-level salaries we saw in 2022 was the result of a perfect storm. During the pandemic, major UK firms faced tight budgets, high inflation, and unused office space. As a result, many dramatically cut back on graduate and entry-level hiring, unknowingly creating a bottleneck of future talent. This was felt two years later, when business confidence rebounded and hiring ramped up. Employers suddenly found themselves competing for a limited pool of experienced professionals." Overall, from 2022 to 2024, wages for these mid-level positions rose by +8% compared to the pre-pandemic period of 2017 to 2019. In this period, positions within accountancy, technology, legal services, and engineering noted the biggest surges. Average salaries for roles such as Finance Managers, In-House Lawyers (5-10 years PQE) and Cyber Security Managers all rose by over 10% as demand increased. Is history repeating itself? It could be. However, under a set of entirely different circumstances. 2025 figures from Adzuna highlight that entry-level jobs have dropped again, by almost a third since the launch of ChatGPT in 2022. Online jobs platform, Indeed found a similar trend, reporting that roles advertised for recent graduates this year represent a 7-year low. Chris continues: “AI and automation tools are rewriting many traditional job roles. While innovation signals progress, it shouldn’t sacrifice a whole group of professionals. Graduate and entry-level positions are quickly being deemed ‘administrative placeholders’ instead of crucial to feeding future talent demands.” Jessica Holt, Managing Director for Robert Walters Outsourcing - EMEA, adds: “We are already seeing the damage this outlook is causing." "With fewer people progressing up the career ladder, organisations are finding themselves competing for a smaller pool of experienced hires, often at a higher cost and with less flexibility to shape talent internally.” Future Careers On The Chopping Block For the entry-level professionals at risk, pressures are mounting. With many feeling their current job opportunities have been significantly impacted by AI, over two-fifths (42%) now feel they need to upskill. Jessica reflects: “Roles that once gave early-career professionals an entry point into the professional world are being streamlined or removed altogether, leaving many people at the start of their careers facing a difficult gap. They’re expected to bring more advanced skills to the table but are given fewer opportunities to learn those skills on the job." “Businesses are also losing a key stage in how they build their teams. Without entry-level roles to cultivate subsequent skilled talent pools, the UK risks falling behind in developing sectors, like green energy and advanced technology, which are already facing critical skills shortages.” Chris ends: "The data speaks to the challenges that can arise in future hiring plans when entry level roles are cut too deeply. This isn’t just about future costs, but the future health of our labour market. Something which requires careful foresight and planning, not looking to emerging technologies for a single solution." “For employers, adopting a holistic approach which prioritises long-term workforce development, targeted upskilling and the application of AI alongside human insights will help ensure they avoid past mistakes while nurturing a talent pool who can meet the demands of the future.”

In some senses, the legacy of any business is a slightly nebulous concept, but the thing which tends to set family businesses apart from other businesses is the degree to which people are personally as well as financially and professionally invested in them. This means that the way the business is set-up, managed and run on a day to day basis is much more likely to provide a reflection of the values of the family members who own that business, and it is the continuation and upholding of these values which makes up the on-going legacy. In this article we’ll look at the issue of preserving the legacy of a family owned business when the time comes to sell the business or pass it on to a new generation. What Is A ‘Legacy’? In the context of a family business, a legacy might include any or all of the following: The family history on which the creation of the business is based The wider reputation of the family across society The moral and ethical principles which guide the behaviour of the family members involved in the business Charitable and philanthropic actions carried out by the family and the business in support of particular causes In addition to the ethos and attitudes propounded by the family through and around the running of the business, the legacy of that business could involve material assets such as property, plant, stock and the goodwill of the customers. Protecting these assets is what preserving the legacy of a family business is all about. In practical terms, there are steps which can be taken when dealing with the issue of preserving the legacy of a family business but the overarching principle of successful legacy preservation involves detailed succession planning. Succession Planning Choosing the right person or persons to take over a business upon retirement is the key element of any effective legacy plan, but it is often something which many businesses neglect to face up to. The reasons for this might be as simple as a natural reluctance to consider the prospect of dying, becoming ill or retiring, particularly if doing so means discussing matters of this kind with close members of your family. But the truth is that failing to plan for succession could lead to conflict within the business and – perhaps even more tragically – the family itself. In the simplest possible terms, examining the various options for succession and having a plan in place will mean that a change at the top of the business, whether planned or unexpected, is far less likely to lead to the kind of disruption which could badly damage the business. The standard models considered when planning for succession include the following: Passing to a family member : This is the option which is most likely to make it easy to maintain the ethos and ideals of the business, at the same time as establishing and entrenching wealth across the generations. Keeping the business in the family is also a highly effective means of maintaining the confidence of the wider outside world. A process of this kind is only likely to go smoothly, however, if clear lines of communication throughout the family have been maintained in the run-up to any hand-over, and the new arrangements are underpinned by carefully drafted legal documentation. Selling the business to a co-owner or fellow employee : If the business operates under a shared ownership model then ownership could be transferred to a co-owner, while, if there is no shared-ownership, it could be sold to an existing member of the team. The advantage of this approach is that it will help to ease any concerns regarding the skill and experience of the person taking over. The process of selling to a co-owner will start with making a valuation of the stake which each of the owners holds. For businesses which are listed on the stock exchange the share price can be used as the basis for valuation, whereas for those which are privately held an appraisal will be needed to establish an agreed value. Once this agreed value has been reached, it can form the basis of negotiations between the two owners. Selling the business to an external party : Interested parties you could consider selling your business to might include competitors or existing investors, and this option could be preferable if you’ve decided you want to walk away from the business completely. The valuation will need to be established in a manner which takes the ownership structure of the business into account, and once a price has been reached you can set about finding the right buyer. In terms of preserving legacy, this option requires a large degree of certainty regarding the approach which the new owners will take to running the business. The alternative to simply trusting the instincts and practices of any buyer is to have the values and ethos of the business clearly set out in the form of a document, drawn up with the agreement of all relevant parties (i.e. any other family members involved in the business). A document of this kind will not only be useful when it comes to setting out how you expect the business to be run in the future, it can also be a tool for preventing or minimising conflicts which might arise over the running of the business on a day to day basis prior to any sale or succession. However detailed a document of this kind is, however, it will not be binding on any future owners of the business once a sale has been completed. Nor can the kind of restrictive covenants which can be imposed on the seller of a business to prevent certain actions for a specified period of time be placed on the person buying your business. Put simply, once they’ve purchased the business they can run it as they see fit, and although certain structures in place (such as existing supply chains) might make radical departure from the status quo either practically difficult or economically un-viable, in the long term you are relinquishing control and influence over the business, and thus creating uncertainty regarding the business legacy. Employee Ownership For the reasons given above, selling to an external third-party might not appeal at all if business legacy sits at the forefront of your thinking when the time comes to retire, or if unexpected illness or death means that succession becomes an urgent consideration. In the vast majority of cases a straightforward familial succession will be the process which does the most to ensure the legacy of a family-run business is preserved, but in some circumstances this won’t be possible, perhaps because the family member to whom the business would be left doesn’t have the requisite experience or skill-set at the time of the succession, or in some cases because they don’t actually want to take over completely. In cases such as these an employee ownership model is far more likely to protect the legacy of the business, as it involves people who have often worked in the business for many years, are steeped in the culture of the business, and will be able to pass what they have learned about the business on to future employees. Another advantage of the employee ownership model is that it boasts a degree of flexibility, enabling the owners in question to tailor the model they use in order to reflect the division of family and business they wish to have in place going forward. The choices range from employees becoming minority shareholders in the business to having complete ownership: Minority employee shareholders : In this model, the family retains the majority of ownership, with a sizeable minority being transferred over to the employees. The employees can purchase shares in the business on an individual basis, or the shares can be purchased by an employee trust which will hold them on behalf of multiple employees. The advantages of this model include the fact that it frees some capital from the business for the family without them having to completely relinquish control, and empowers the employees involved to feel that they have a genuine long term stake in the success of the business. Minority family shareholders : This is the opposite of the above structure in that the family retains only a minority of shares in the business, with the majority being sold to employees directly, via a trust, or through a combination of both. In this way the family will still maintain a stake in the business – something which is important to many families – while taking more of the money available. Another advantage of this model is that if the family transfer more than 50% of their shares to an employee ownership trust they generally don’t have to pay capital gains tax on the sale, while the employees in question are entitled to an annual tax free bonus of up to – at the time of writing – £3,600. Full employee ownership : here, the family divest themselves of all shares in the business, using the structures previously discussed. This approach offers the advantage of maximising the amount of money the family can extract from their business, at the same time as making it more likely than other models that the legacy of the business will be preserved. In order to maximise the influence which the family will continue to have over the business, some family members could continue to work in it, or be appointed in a role helping to govern any employee trust. At the same time, the constitutional documents of the trust – setting out the rules over how it will operate – can stipulate that any family trustees have a veto over decisions which might impact the legacy of the business negatively, such as relocation, a change of the company name or sale to a third party. Should you require any advice or support on how best to preserve the legacy of your family business, please contact the specialist family business team at Buckles for a confidential, impartial consultation.

Communication in a family business always seems to be a moving feast. Someone, somewhere, in the family, may appear to be out of alignment with business decisions or strategies or family roles or responsibilities. And yet, communication is a core competency that all family members and staff employed in the business must have to effectively operate and reach their goals. Here are 5 tips to consider discussing at your next family meeting: 1. Do not try to discuss and resolve family and business issues or challenges in the same meeting. Separate the challenging questions so the facts are the focus of the information flowing across the table. Have separate meetings with family to discuss family issues and other meetings to discuss business issues. 2. Really listen to the other people in your conversations. Check in with the others in the conversation that “This is what I’m hearing. Is this what you are saying and meaning?” 3. Be very wary of your messaging when using technology to communicate with other family members and business associates. When not meeting face-to-face the dynamics of communication change and we lose the body language and tone segments of our conversations. Create an online strategy for all to understand and utilize. 4. Educate family members and staff on how to communicate better. Training can be part of an on-boarding process for new family and employees joining the business and can also enhance the skills of those already in the business. 5. Conduct a review your current perception of communication with the family and maybe even include the top management team. Ask questions like: On a scale of 1 to 10, how well do you think we are communicating now? Is there something bothering you that has not been addressed by the family? What can we do to improve our communication? Look for an average communication score and discuss members perceptions. Then you can look for ways to improve your family’s communication by running another sample a month or two after some recognized adjustments have been made. Improving communication is a goal worth spending some time and effort to achieve. Working through these 5 items will enhance both your family and business outcomes.

Family businesses are often viewed through the lens of tradition—steadfast, familiar, and consistent. But beneath the surface lies a quiet revolution. Increasingly, it is the interweaving of different generations within these firms that is driving innovation, digital transformation, and strategic evolution. Where one generation brings experience, resilience, and long-term thinking, the next brings fresh perspective, digital fluency, and a desire for change. Together, they create a dynamic partnership that has the potential to steer family businesses into a future shaped by innovation, not inertia. The Myth Of Stagnation There’s a common misconception that family-run enterprises are inherently resistant to change, weighed down by legacy thinking or bound to “the way things have always been done.” In reality, many family firms are remarkably adaptive—precisely because they are not beholden to outside investors or short-term pressures. This autonomy gives them room to experiment, fail fast, and pivot when necessary. What makes innovation in family businesses unique is the way it often unfolds: not in corporate labs or innovation hubs, but around dinner tables, during generational handovers, and through everyday collaboration between relatives with differing worldviews. Generational Differences As A Strategic Advantage The presence of multiple generations in one enterprise creates a rich environment for knowledge exchange. Older family members tend to bring in-depth sectoral knowledge, financial prudence, and relationship capital built over decades. Younger family members, by contrast, often challenge the status quo—armed with digital tools, an appetite for sustainability, and a finger on the pulse of emerging trends. The tension between these perspectives, when managed well, becomes an engine for innovation. It prevents complacency while preserving the core values that make a family business distinct. For example, a long-standing family manufacturer might explore automation and e-commerce because a younger family member returned from university with fresh ideas—or because a Gen Z niece persuaded the board to invest in AI-driven logistics. In such cases, the company evolves not in spite of its family structure, but because of it. A Safe Space To Experiment Unlike larger corporations, family firms often offer a safer space for experimentation. Family members, especially younger ones, are encouraged to try out new ventures, pilot projects, or tech integrations—knowing that support and understanding await, even if initial results fall short. This culture of psychological safety fosters a fertile ground for innovation. Moreover, decisions can be made quickly and without layers of bureaucracy. If a younger director proposes a new digital marketing strategy or a sustainable packaging overhaul, they’re often presenting it directly to a parent or relative who holds decision-making power. This flat hierarchy can accelerate implementation and shorten feedback loops. From Tradition To Transformation Family businesses frequently blend traditional values with modern innovation in a way that resonates strongly with contemporary consumers. For instance: Food and beverage producers may modernise branding and adopt eco-friendly packaging while still using generations-old recipes. Retailers might invest in digital platforms and data analytics, all while maintaining the kind of personal customer service that large chains struggle to replicate. Manufacturers often integrate smart technologies into legacy operations, improving efficiency without discarding craftsmanship. A prime example can be seen in family-owned vineyards that adopt drone technology for crop monitoring, or legacy textile companies that invest in ethical sourcing and blockchain-backed supply chain transparency. These businesses preserve their heritage while positioning themselves firmly for the future. Succession As A Catalyst For Change Succession planning—a critical moment in any family business—often becomes a turning point for innovation. As leadership begins to shift to the next generation, so too does the business strategy. Incoming leaders tend to bring new priorities: ESG, technology integration, diversity, and global markets. This transition is not without challenges. There may be resistance from older leaders who fear the loss of control or the abandonment of trusted practices. However, many successful transitions are marked by a phase of "co-leadership"—a period where different generations share the reins, ensuring that change is both respectful and bold. In fact, some of the most transformative periods in a family business’s history come during these handovers, when values and vision are actively negotiated, and new paths forged. Professionalising Innovation To truly thrive, family businesses are increasingly professionalising their approach to innovation. This includes: Appointing non-family innovation leads or tech officers Establishing family councils or innovation committees Partnering with start-ups or incubators Creating innovation budgets tied to clear KPIs Importantly, many family firms are learning to balance the agility of family decision-making with the rigour of structured innovation processes. It’s no longer enough to rely on gut instinct alone; the new generation is bringing data-driven thinking to the table. Innovation in family businesses doesn’t look like Silicon Valley disruption. It looks like evolution—purposeful, values-driven, and often deeply personal. When generations work together, their complementary strengths can unlock bold transformation while preserving what makes the business unique. In this way, family businesses become not relics of the past, but engines of the future—where tradition informs change, and where innovation is not a break from the past, but a continuation of the legacy. And in a world obsessed with the next big thing, perhaps it is these enduring, adaptable enterprises that understand best how to grow something worth passing on.