Overcoming Favoritism in Family-Owned Printing Businesses
When consulting with family-operated printing businesses, I often see family members on the payroll who do not appear to be working for the company. Or some family members do not seem qualified for their roles in the organization.
Family favoritism often arises innocently enough. But over time, these practices can undermine efforts to build a cohesive corporate culture in which all employees believe they are treated fairly.
Do any of these practices occur in your business?
- A family member drops in and out of the business as family obligations allow.
- A family member who formerly worked in the company continues to receive a salary.
- A family member retired years ago yet continues to report to work every day. He still has a desk and an assistant and conducts personal business from the office.
- A family member has taken extended leave and has not communicated plans for a return.
- A family member is an up-and-coming employee but is not yet at the level to receive the type of compensation he or she is getting.
- A married family member has brought a spouse into the company who is not qualified in the printing business and has no real function.
- The owner uses the paycheck to give family members their inheritance while he or she is still alive.
- An unqualified family member is promoted over a non-family employee.
These situations appear unfair to the non-family workers.
Non-family employees may rationalize it and say, “Well, it’s their company. They can run it however they want.” Still, resentment builds, loyal employees make excuses, and other workers just leave.
Do you see where this is going?
At some point, the workplace becomes dysfunctional. Some workers remain silent and some speak out. Some grow bitter, while others ignore the situation, hoping it does not affect them directly.
This state-of-affairs can also cause resentment among the working family members who wonder why a favorite sister or brother gets to goof off and still collect a paycheck.
The other common result is that the company becomes top-heavy with management-level family members. Not only is this a financial drain on the company, it can also impede strategic decision-making and nimble business practices. Disputes can arise when each family member believes he or she has an equal say in the company direction.
Recognize and Solve the Problem
One solution for a family experiencing some or all of these issues is to work with a business advisor.
With a qualified and experienced advisor, the family can look at the current organizational chart, identify issues, talk about the effects of favoritism, define roles, and develop fair compensation. This is also a good time to talk about transition plans and timelines.
Family-owned printing businesses have unique issues, challenges, and rewards, and it is wise to work with an outside expert from time to time to make sure your family business is on the right track.
At LaManna Consulting Group, our team of advisors has helped many family-run companies address emotionally fraught issues such as succession planning issues or preparing to sell the businesses. Learn more by browsing our library of white papers or check out our podcasts and videos. Better yet, give us a call.
At LaManna Consulting Group, our team of advisors has helped many family-run companies address emotionally fraught issues such as succession planning issues or preparing to sell the businesses. Could you benefit from a non-partial, third-party? Give us a call. (561) 543-2323