The "Family Employment Policy": Setting clear rules before hiring

Nothing creates tension faster within a company than a family member being hired without clear qualifications—or worse, being impossible to terminate for poor performance. The antidote is a formal Family Employment Policy established long before the next generation applies. 

A robust policy should clearly state:

• Minimum Qualifications: Requires relevant college degrees or 3–5 years of external experience in a similar role. 

• Market-Rate Compensation: Salaries must match industry standards for the position, not family financial needs.

• Standard Performance Reviews: Family employees are evaluated using the exact same KPIs and management channels as non-family staff.

When the ground rules are documented in advance, joining the family firm becomes a privilege earned through merit, not a birthright.

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