Posted by Alumni from HBR
November 15, 2020
Although family members are often committed to the business, they sometimes lack the skills and fortitude necessary to maintain it across generations. In response, family firms are increasingly hiring non-family employees to help their businesses survive and grow. However, family firms face a challenge in this regard as they generally offer lower compensation, extend fewer opportunities for advancement or skill development, and have policies and cultures that treat non-family members differently than family members. For these reasons, family businesses frequently suffer from a human capital deficit. Therefore, a pressing question is how can family businesses attract quality non-family employees? learn more