Someone recently asked my suggestion on whether or not the business should hire next generation into the family business.
Now, should you hire family members in your family business or not, is a question tough to answer. There is no correct answer to this and is a very subjective discussion. In many discussions on this topic, it appears that people believe that the first generation sets up a business and works hard to establish it, second generation builds the business, scales it and turns it into a money making enterprise and then the third generation brings the business to the ground. While I have seen this to be true in many cases, but, then I have seen businesses grow beyond generations as well, and so, I guess this has something to do with the gene pool or better understanding of the skills and knowledge levels of the younger generation, by the older one.
Many times, we do not train the next generation for the skill levels desired for the growth of the business or may be we are unable to identify the skills that will help them better fit in specific roles in which they can perform better.
The benefit of having family members join the family business is the trust because of similar goals, common objectives and unsaid loyalty. Its easier to not worry about confidentiality if it is “All in the Family”. Also, they might seem to better fit into the culture of the management better because of similar objectives.
Notwithstanding the benefits of family business, sometimes family members may not be suited for joining family business as they just do not same work culture as their elder family members or their
temperament does not allow them to get along well with the other members of their family. As a child grows, he reacts to biases that may set in while growing up or just are not as smart to take the business forward. In such cases, it may even be better for the family business to encourage them and support them for alternate professions or business for they are better suited or equipped by training or knowledge.
The fact is that businesses must hire their key people carefully and objectively, keeping in mind what its better for the existence and growth of the business. Failure of family business can affect the whole family monetarily as well as existence of personal relationships.
So, hire only those who fit the role by way of culture, education, temperament, training, attitude, and the willingness to scale the business by rational decision making.
