Managing Family Members

Why it is sometimes difficult for a father or mother to have their son and/or daughter as an employee in their privately-held, family business?  One very difficult situation is how to handle termination.  Terminating an employee is always difficult and must be handled carefully for the sake of both the departing employee and for the business itself.  But what if the employee you have to terminate is your son or daughter (or in-law, cousin, etc.)? 

The true challenge for an owner is to balance the competing roles of leader and parent.  Here is a way that one father handled it:

The father/business owner calls his son into the den at home.  Dad is wearing a baseball cap which has the word BOSS embroidered on the front of it.  “Young man,” he says, “your work record has been below the company standards.  Your attendance has been abominable, and your sales have been below quota.  You also seem to have personality problems with the staff. In light of these serious issues, I regret that I must terminate you immediately.”    

Then the father removes the cap and takes out another one that says POP on it.  He puts his arm around his son and says, “Son, I understand that you have just lost your job.  What can mother and I do for you and your wife?  How can we help?”

Sound far-fetched?  Wouldn’t it be great if it were possible to handle it exactly like this and have it be effective?  Many family–owned businesses are experiencing variations of this theme on a daily basis. The parent in a family owned business often has to figure out how to separate the concerns and issues of the boss, from the sensibilities of a parent in order to make the right business decision.  How are you helping your child by keeping them on when they are not performing?  Is this in their business interest as well?

Making this transition can be very difficult for the parent/business owner.  But it isn’t hard when assisted by able, objective, third-party guidance.   We work with family/business issues like this regularly.  Hard for POP, but not hard for us.  We’d be happy to have a conversation to help you explore the issues and approaches that work.

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