Nextiva Tuesday Tip: 5 Tips for Keeping the Peace in Family-Owned Business

If you run a family-owned business, you know that hiring, managing and motivating non-family employees can sometimes be a challenge. Employees may think there’s no room for advancement or that the decks are stacked against them because they aren’t family members. How can you avoid these problems? Try these tips.

  • Stocksy_txp4bfbd52fKr2000_Small_131353 (1)Compensate them fairly. Family employees typically have ownership or stock in the family business or enjoy other perks in addition to their salaries. While you may not want to reward non-family employees the same way, it’s important that you find other ways to compensate them financially. Consider offering bonuses or setting up a profit-sharing plan so employees feel they are sharing in the success of the business they work hard to grow.
  • Offer them opportunities for advancement. Promoting from within is a smart strategy for any small business, but particularly in a family business. This practice shows non-family employees that working hard, getting results and being loyal to the business pay off…even if your last name is different than the owner’s.
  • Empower them. Non-family employees in supervisory or management roles often become disgruntled if they feel like they have no real power in the business. If you give a non-family employee a management position, be sure you also give him or her the authority to make the decisions that go with that role, including disciplining family members who aren’t living up to expectations.
  • Communicate with them. Family members who work in a business naturally end up discussing business during their off-hours, which can leave non-family members feeling left out if they don’t get the same information. When your business includes non-family employees, it’s crucial to communicate openly and clearly. Otherwise, non-family employees will feel as if they’re being kept in the dark, and rumors and misinformation will start to spread.
  • Treat family members professionally. It’s easy to slip into a trap of treating family employees one way and non-family employees another. Be sure to maintain professionalism when dealing with family employees—it makes everyone on the staff feel like they’re on a level playing field.

By following these tips, you’ll build lasting bonds and loyalty among your non-family employees.

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