Categories: Managing Family Business

Family Employment Policies — Entry into the Business

This post is the fourth in a series on Family Employment Policies. The beginning of a family employment policy should address what is necessary for a family member’s entry into the business.

Earn Your Opportunity – A clear statement that family members must earn the opportunity to enter the business. A job in the family business is NOT a birthright.

Requirement for Experience and Demonstrated Competence – This is often manifest in the requirement that family members work outside the family business for a period of 5 or more years, hold positions of responsibility in their job and demonstrate that they have been and can be a valuable employee. Their value would be evidenced by promotions during this period. Note the emphasis on experience and competence. The ability to sustain a high level performance over time is the best evidence of competence.

Clear Statement about Professional Growth – Some families require higher education as a prerequisite. I think both higher education and continued professional education are essential. The best business leaders are those who begin with a sound foundation and are continuously learning in both formal and informal settings, thus expanding their knowledge base and ability to lead.

Following the above guidelines will help a business to hire competent employees who make positive contributions to the business.

Check back soon for a discussion on the next element of family employment policies, Compensation.

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