How to Hire and Keep Non-Familiy Talent
Family businesses often have a hard time attracting and keeping employees who are not family members. Qualified non-family candidates often perceive that family employees receive special treatment, that there is little opportunity for advancement, or that there is no opportunity to gain an ownership stake.
Yet, the family itself isn't likely to fill the pool of talent necessary to keep the business thriving. A growing business needs both strong management and specialized personnel, from engineers to sales people to financial experts. It is not likely that a handful of relatives can provide all of the needed abilities.
Following are a few tips on securing and nurturing "outside" personnel.
Plan for the Future
Start with a vision describing the company's future. Then take a hard look at current personnel. Is the necessary talent in place to make that vision a reality? Often it helps to go through this process with a trusted outsider who can provide an unbiased opinion.
Consider succession plans. Business guru Peter Drucker wrote, "The basic rule, and one that should be clearly established, is that people beyond their early sixties should ease out of major managerial responsibilities. It is a sensible rule for anyone, and not only the executive, to stay out of decisions if one won't be around to help bail out the company when the decisions cause trouble a few years down the road - as most of them do."
Yes, there's some debate over whether Drucker is right about "early sixties," but history shows that starting succession planning early is key to a company reaching and maintaining its potential.
Unless your business is the exception, the necessary talent to succeed the founder will not come from within the family ranks. The choices at this stage are stark: keep working; sell or liquidate; or put people in place that can continue the business. If the correct route is to bring in outside talent, the next step is finding the right people.
Hire Great People
Get at the candidate's hot buttons. What is his or her motivation? Some are interested in money and title, while others have an equally strong desire for long-term financial and emotional security. Still others may seek a position where their creative potential can prosper. You want to find a good fit.
By asking the right questions, you can hone in on what is truly important to a candidate. "Where do you want to be in five years?" is an excellent starter. Also, be sure to discuss the candidate's feelings about working in a family business and your plans to address his or her concerns.
Retain Talent
There are innumerable ways to lose non-family employees. Here are a few ways to keep them.
Be fair. Keep your word and be loyal. Don't let your non-family talent feel less important or less valuable than family members. Reflect a sense of fairness in pay and benefits as well.
Work as a team. Foster teamwork among family and non-family alike. You don't want an "us versus them" mentality to creep into the workplace.
Remove sub-performing people. This includes family members! Sometimes family members feel a sense of entitlement that's damaging to coworkers. Make sure every employee earns his or her paycheck.
Consider an ESOP program. Ownership in the company can level the playing field between family and non-family employees.
Allow all employees to make significant decisions. Authority to make decisions is empowering and important for career growth. Make sure non-family employees are as empowered as family members at the same job level.
Finally, continue to be as creative and dedicated as you were when you first started the business. Your enthusiasm will inspire others and create an atmosphere where both family and non-family employees can thrive.
