Why Family Business Policies?
Having family member and stakeholder employment policies is an excellent tool to ensure that family members have adequate preparation to enter the business and also helps to minimize and resolve conflicts by shaping expectations.
A set of guidelines provides structure and objectivity to decisions that can be emotionally laden and create resentment and confusion. While such policies differ from family to family, several principles maximize results both in business performance and family relationships.
From the business perspective, successful involvement of multiple family members is most likely to occur when employment criteria are clearly defined and when senior management implements clear lines of authority, accountability and regular performance reviews.
Best practices that successful family firms incorporate into their family employment policies include:
Create a Family Member and Stakeholder Policy Manual for Your Business – Easily and Affordably!
- Who will be covered by the policy?
- Conditions of employment/participation in the family business
- How much experience outside the business do you expect family members to have prior to entering the business?
- What level of education will be required to qualify for employment?
- What relationships are permitted to work in the business?
- How will family members enter and exit the business?
- How will family members be compensated?
- How will reporting relationships be assigned?
- What is the policy around perks and expense accounts?
- How will family-members’ job performance be evaluated?
- And a variety of other areas
Until now, family businesses that wanted such a policy manual could spend a great deal of time developing one on their own, or a great deal of money working with a family business consulting specialist to develop one for them. But now, Ahola has made it both easy and affordable, with the world’s first online system for creating Family Member and Stakeholder Policy Manuals.
The Ahola system is easy-to-use and completely customizable. It is the perfect tool for family business owners, leaders and non-family HR professionals who work for family-owned companies. Ahola’s “Guide to Creating your Family Member and Stakeholder Policies”
will provide you with some basic questions to help your team get started in the process of developing your own policies for use within your organization.
Call us or ask your Ahola representative for a demonstration and pricing information on this and other elements of our BreaktHRough
program designed for family business success.