In our last blog post, we saw that we are all stewards of our businesses, which means avoiding nepotism and ensuring that family members are in the right roles and that all employees, family, and nonfamily alike, are treated fairly.

This may sometimes mean that a family member needs to be turned down for a coveted position.  This can feel very conflicting to a family business leader who loves their family but also wants to be a good steward and give the right person the job.  

In this situation, we can affirm that our family members are unconditionally loved and wanted regardless of their performance.  Furthermore, we can also explain that within the company, having a position or promotion is based on performance, but that our love and value for that family member doesn’t change at all. 

For example, a family business leader might say to a family member: “I love you and will always love you.  That will not change.  Our family is called to steward this company, which means we must act in a way that pleases Christ first.  I hate to say this, but right now, we will give the promotion to X.  I am sorry for what that brings up in you.  I am eager to help resolve any tensions that this creates. I would also love to spend some time developing a plan for how to grow into that role or another higher role so it is clear when you can achieve that role.”

Based on the example above, when we are talking to a family member who is hurt by a hiring/promotion decision, it is important to:

  1. Affirm the unconditional nature of our love for them
  2. Remind them that we are just a steward of the company who needs to answer to God for how we run our business (assuming the family member is a Believer)
  3. Directly share that someone else is going to get the promotion
  4. Be willing to help resolve any tensions that are in the middle of the relationship
  5. Encourage further discussion to brainstorm how the family member can grow into a different position (assuming they have not hit their capacity for growth)
  6. Offer to invest resources towards their growth
  7. Give that family member opportunities to be stretched and grow.
  8. Have others evaluate how well the family member is doing and tweak what needs to be tweaked so that they grow further

Regardless of performance, having shares in the company creates a vested interest for family members to make sure the right people are in the right roles.  Even though family members may initially feel hurt when they are turned down for a position or a promotion, being a good steward means hiring committed, competent, and capable employees for each role.

See our second post in the series here.  Return to our first post in the series here.

Chew On This

How can you show unconditional love to each family member in the firm without practicing nepotism?

1st Principle Group

Leave a Comment