Should Jimbo Join the Family Business?

Jimbo wants to join the family business. He’s the youngest of us four. Two of our siblings work in the family business. I don’t. I don’t think my parents had any real plan in place, it just kinda worked out that way. Jesse, the oldest, always seemed interested in the business and started working there in high school. She was never very interested in school. She attended a local community college part-time for about two years and really never left the company. Now she’s 28 and head of marketing. I, on the other hand, am second-oldest. I never thought working with Dad would be much fun. I took a job out of college and liked my freedom. Tommy, the third child, is 24. He finished three years of college and is the warehouse manager. He’s had some personal issues the past few years and has not been able to work full-time, but Mom, who does the books, has not cut his pay or benefits.

Jimbo is the fair-haired child. He gets away with everything and makes things look easy. School. Sports. Even friends. He earned a college degree in management in four years, and has worked for a local bank for a year. Word is he’s doing well there, but the problem is that he’s expressed an interest in working for my parents’ business. I say “problem” because it’s caused a ton of tension. Jesse and Tommy say there’s not enough room in the business for Jimbo. Jimbo says they should make room for a guy with his talent, education and work ethic. He also says it’s not fair that they get to work for Dad and he doesn’t. Besides, Dad says the business isn’t doing well anyway.

If you asked me, I think Tommy and Jesse are intimidated, worried about what their future might be like if Jimbo joins the business. Most people would say Jimbo is the most capable of running it in the future. And I think Dad and Mom are looking for answers, given that they’ve been pretty stressed about the business for quite some time.

Question: What is the future of this family? This business? Should Jimbo be shut out by his siblings? Maybe Jimbo should be encouraged to work elsewhere because he’s the most capable of succeeding on his own. Or maybe the business should hire Jimbo because he is smart, educated and talented. Jesse and Tommy will just have to move over and, if Jimbo proves to be the most competent, so be it? What’s the answer?

Some years ago, David Bork – pioneer in family business consulting – suggested that for family businesses to succeed (that is, both the family and the business succeed), there needs to be clarity on key issues. One is employment of family members. He helped a multigenerational family business develop its hiring policy. Here is a portion of it. It might spur some thinking about how to manage your own family business.

General Conditions

1.   Family members must meet the same criteria for hiring as nonfamily applicants.

2.   Family members are expected to meet the same level of performance required of nonfamily employees. Like nonfamily employees, they will be subject to performance reviews and to the same rules on firing.

3.   As a general principle, family members will be supervised by nonfamily members.

4.   Family members under age 30 are eligible for temporary employment, with “temporary” defined as less than one year. To be re-employed after temporary employment, a family member must meet the requirements of Condition 7 below.

5.   No family member may be employed in a permanent, entry-level position (that is, a position that requires no previous experience or training).

6.   Compensation will be at “fair market value” for the position held.

7.   Family members seeking permanent employment must have at least five years of work experience outside this company. One of those jobs must have been held for at least three years with the same employer, during which time there must have been at least two promotions. It is our view that if a family member is not a valued employee elsewhere, then it is not likely he or she will be happy or useful here.
Applying for a Position
Family members must make their interest known in writing to the president/chief executive. When a position becomes available, only family members who have properly expressed an interest in advance, in writing, will be informed of the opportunity. They may then complete the normal application forms and submit the application for appropriate processing and consideration.