Family in the business

[font size="1" color="#FF0000"]LAST EDITED ON 08-03-05 AT 03:44PM (CST)[/font][br][br]Hi all! It's been awhile since I've visited the forum, but I'm working as a consultant temporarily for a small company, trying to iron some HR things out for them, and have to ask your advice:

A small-business owner has his mother and sister working in the office, the mother being the previous owner of the company. The son / owner purchased the company from his parents about two years ago.

The sister had the option of purchasing the business with the brother, but the siblings didn't work well together and the decision was made for the son to have the only option of purchasing.

I've been brought in because they don't have an HR department and besides developing a handbook, some policies, etc., I'm there to help remove some of the "waste" from the office, the large part of which is turning out to be the mom and the sister. They both believe they are too good to answer phones and spend most of their days filing their nails, and really add nothing to the company besides taking up space.

Although it may sound like I'm simplfying the situation is it just that. Once the mom and sister are gone, (mom being accountant and sister being "office manager"), there are other, trained office staff, who will be able to step up and be trained in these positions as solid employees of the company.

This is just the beginning, but regarding the family situation, I'm prepared to be the "cleaner" in the situation, although the owner needs to step up and have some responsibility too. Does anybody have similar experience and how did they handle the business situation while still keeping as much of the family relationship intact as possible?

Comments

  • 9 Comments sorted by Votes Date Added
  • Hey Mel, how are you? Great to have you back for a time.

    Now to it. Since they don't have a handbook, P&P in place, I assume job descriptions are out of the question. So, I suggest some are made, you sit down with mom and sister individually with the brother/son/owner and say, "This is the job that needs to be done. Will you or won't you do it?" If they say no, say goodbye. If they say yes, then it will be a matter of performance issues if they don't. Wow...good luck!
  • Mel,

    Welcome back! I suggest that you by-pass the pleasantries and touchy-feely Kumbaya singing. Sit-down with the owner and have a frank, candid and poignant conversation with him regarding the state of the business. I doubt you'll be telling him anything he doesn't already know. The fact is that very few people are ever able to make this type of arrangement work.

    Gene
  • Good to hear from you Mel.

    It sounds to me like the owner has hired you to be the paid hit-person. He is the one that needs to maintain the family relationship and you will probably be the fall-girl.

    He will say something like, "...on the advice of my fabulous HR professional consultant, she says the jobs I need done are different than you two can do, so gee, I am reeeeally sorry, but she says you have to go and I have to develop this talent in my other staff."

    "Yeah, I know I am the boss, but she knows what she is doing and has helped right-size other businsses. My hands are tied - this is the professionals opinion."

    "Really sorry mom, what time is Thanksgiving dinner? Yes, I am mad that's the way it turned out too. Can I help you clean out your desk? Yes, it's too bad that's the way it has to be. And since this is so hard on everyone, as soon as you two are gone and I have identified the staff that will take your places, I will let the consultant go."

    Ok, so I am not a great screen writer, but when you mess with family - they will eventually find blood is thicker - even if getting them out is the right thing to do - and it sounds like it is.

    Good luck with it - he probably won't really fire you, but you may have to hide when mom comes in the office.x;-)
  • I'm back with Leslie at number 1. Go over the jobs that need to be done and put together job descriptions. Personally, I would sit down with Mom alone first since it was her business and deal with it as a business issue. Does she want her legacy to continue? This is the work that needs to be done, how would she suggest it be done against a list of employees that shows her and daughter on the payroll and what they're doing and getting paid versus the rest of the staff. Could Mom afford to have extra family on the payroll doing so little when there's so much to be done and still keep the business profitable? If she wants to stay, make a deal that she is paid for part time work as a consultant. She can take some well-deserved time off but still be available for consultation (and feel needed). Sis needs to either contribute and work a proper job or hit the road. If this doesn't work, make out the pink slips.

    My last job was for a family company that had these issues in phases. Keeping things on a keep-the-family-business-going level helped.
  • I work for a family-owned business, 150 ees. Three of the owner's adult children work here, and we definitely don't have this problem. While I am sure they are all well compensated, they are all very hard workers. I think the owner expects a little more from them, and we have no morale problems working with them. They really are great.

    In your situation, what is the brother's actual goal? Is it to find a way to get rid of mom & sis regardless, or take care of performance & budget issues and since mom & sis seem to be the problem they MIGHT have to go?

    I agree with Leslie about sitting each one down with a job description and give them the option of working or leaving.
  • The owner's goal is to make the company stronger.

    He hasn't pointed the finger at sis and mom; they are just a glaring problem within this company.

    At Christmas time, mom tells owner that sister should get her bonus. Then sister approaches owner and says mom should get her bonus. Owner doesn't have any communication within the company, therefore doesn't know how much bonus the company can actually afford. Sister and mom don't share details with the owner and owner isn't confident enough to know what questions to ask.

    Sis and mom are just a small part of this. Owner also has to network with other small business owners, get some permanent HR help, get some Supervisors in place, etc. They aren't even orientating new employees right now because when a newbie shows up the "office manager sister" looks the other way and doesn't want to go through the orientation, but when it comes time to pay the new guy, she wonders where his paperwork is.

    It's a ridiculous situation, which is why I couldn't wait to help them out. I appreciate each of your comments already about putting job descriptions in writing, policies and procedures and reviewing them in detail with each individual. That alone may make mom step away, and sister may have to be molded a lot. I know I may come out looking like the bad ass in this, but if I know what I'm doing is right, I won't worry about it.

    Sorry for the length of the posts! There's a lot to say about this company. The company I left in November made me shake my head. This one just stuns me.
  • I have to give the son credit for at least hiring an outside HR professional to look at the big picture. I have to assume he knows that there are issues and I feel he made the right decision in hiring you.. I am part of several family businesses. I am the HR director (and stockholder/partner) the other partners are my step-brother and step-father and another party who is not related. I only wish that I could have you come here and analyze our very dysfunctional operation. I have done what the others are suggesting, job descriptions, defined CEO's long and short term goals, suggested alternative staffing , etc... but his family is gold and does no wrong no matter what..they get what they want when they want it and they have their own set of rules in the office. At least you have the support of the CEO in your corner, run with it. It is very frustrating...everyone here has pretty much accepted it, however because we have 30 other employees who are not family, it does create morale issues. My suggestion is to treat the situation as if there was no family involved. Evaluate the employees, if they don;t fit the description or are not doing thier job.. you know the drill.. I agree with whomever stated that the son is using you as a "hit man". I also believe that he truly knows somthing has to be done and he does not want to be the bad guy... Good luck, and stop by sometime if you would like another challenge... Let us know the end result of this one..
  • If the owner has not given you clear-cut parameters I suggest you submit your comprehensive report on time along with the bill for your services. Be brutally honest, make your best recommendations, then let the owner sink or swim and move on to your next job. It's not your job to make changes. It's only your job to give sound advice and offer a plan.
  • The other responses are correct, and the owner is either unaware of how the family members perform (least likely) or is knowingly hiring a consultant to point out the deficiencies (most likely) so that then he will have something on which to hang his hat when he deals with the problem. He will probably tell mom and sister, see the consultant said this, not me. Sometimes that is the role of a consultant.
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