Categories: Managing Family Business

Family Employment Policies — Performance & Exit from the Business

This post is the sixth and final in a series on Family Employment Policies. The door to the family business swings both ways, “In“ and “Out.“ Most discussions focus on entry into the business, but there needs to be clarity about family members being subject to performance evaluation and exit from the business, as well.

Performance evaluations are professional processes that present an opportunity to discuss quality of contribution, work habits, professional growth, demeanor and attitude within the business and with customers. Family members set the standard for the company and their behavior must be a leading example for all employees.

The policy must also state that a family member’s employment can be terminated for cause, with a clear description of those conditions.

A great example of an actual employment policy is The Golden Goose Family Employment Policy. It is more stringent in its provisions than many families require, mainly because there are so many family members. The structure and content of this policy has become the “gold standard“ in family business circles. To read the policy, visit the following link:

https://www.familybusinessmatters.consulting/wp-content/uploads/2017/08/familybusiness.pdf

Does Your Family Business Need Help?

Family Business Matters has extensive experience assisting family businesses. With many decades of experience, we understand the wide variety of challenges that families face as they work together to build, grow and sustain a thriving family business generation after generation. Through conferences, continuing education programs, family business retreats, speaking engagements and private family business consulting services, Family Business Matters has assisted more than 450 family-owned businesses around the world chart their way through family business issues of all shapes and sizes.