SUCCESSION PLANNING
A Policy on Family Employment

A common problem that inhibits a family business is employing a relative, who is not capable of handling a job professionally or, at the very least, adequately. Sometimes it is lack of skills; more often it is lack of desire or ambition. Competence, not family name, is the key to success.

The family business is not a place to "park" relatives; nor is it a social agency. It is an asset held by a family and is probably the biggest asset in the family portfolio.

Therefore, it is important to have a statement of policy on family employment. All family members should adhere to the policy for equal employment opportunities to prevail. The following guidelines developed by David Bork, a family business consultant, provide sound criteria for entry:

1. Family members are responsible for expressing appropriate interest in employment opportunities in the company.
2. Family members may not apply for entry-level posts.
3. Family members must have appropriate work experience and fully meet the requirements for the position in order to apply.
4. If possible, family members should not participate in the hiring of other family members.
5. If hired for any position, a family member will be treated the same as anyone else would be in that position.
6. Whenever possible, family members should not directly supervise other family members.
7. Job performance alone will determine advancement, salary reviews, or termination of hired family members.
8. Family members will be paid fair market salaries for jobs performed.