Family businesses are a common occurrence in New Zealand, and the Waikato Region is no exception. It can make sense for a family to work together, share their resources and reap the rewards of success by building up their family wealth.
Families will know each other well, there will be a high sense of trust and usually a lot of common ground. Traditions and family values often feature highly.
A family run business can be a real drawcard for recruiting staff because not everyone wants to work for a large corporate. A family business can be nimble – i.e. they can change direction as they like and are able to make decisions quicker than say an international corporate. This not only simplifies things but offers a greater sense of belonging for its workers.
In my opinion, family businesses often undersell themselves, and with the current labour shortage, there is no better time to use this family card. “We are a locally owned family business who really care about our staff. …”. Including this sentence in a job advert sets the scene and portrays a workplace that will appreciate its staff.
Of course, when family members work together, the familiarity aspect needs to be managed. It is easy to create an ‘us and them’ situation without realising it – meaning you are either ‘family’ and given privileges or on the outer as ‘non-family’ and have a feeling of not belonging. A clearly defined business structure with set responsibilities for all the team (including family) helps with this. More importantly ensure that staff only have one person they report to. The very thing that sets family businesses apart from others (flexible, friendly, and relaxed) is the very thing that can tear it apart. It becomes very confusing if different family members become involved with the same issue and over-ride decisions made by others. It also becomes a way for staff to play the situation to their advantage – wouldn’t you go to the family member who will give you the answer you want?!!
When the family business has different generations working together, the ‘old and the new’ need to consider each other. In fact, a family business could easily have three generations working together. Yes, the older generation has the experience but what the younger generation lacks in experience, they more than make up for in technological know-how! In my opinion the older generation needs to ensure they don’t smother the next generation with the old way of doing things. Having worked with several inspiring young managers, I am a great advocate of young people. Younger people have a completely different philosophy to life and given the opportunity to shine, they will move the business into a different direction. I guarantee they will tend to work smarter, not harder. Technology is their go to, and this is the way of the future. There is a risk of old family businesses being so steeped in tradition, they become out of date and inefficient.
To make the most of a family business, have an organisational chart which is visible to all the team. Promotion of family members should be based on merit, not bloodline and any family members entering the business know where they fit in and who they report to. Never let a junior family employee overrule a more senior staff member.
If there is conflict and discontentment amongst family members, it may be helpful to have a ‘clear the air’ session with a non-family facilitator so everyone can turn the page, enjoy working together to achieve results and create a legacy for future generations!!
