The reason I could never work in a family business is best encapsulated by Robert Duvall's character in The Godfather films. Â
Despite his loyalty to the Corleone family ever since he was a kid, he's never truly accepted as one of their own. Hence why when Al Pacino takes over the empire, he demotes him almost immediately. It's also why, particularly in the sequel, he's denied information and excluded from negotiations, before being omitted entirely from the third film.
![Family businesses can leave you feeling like Robert Duvall in <I>The Godfather</I>.](http://web.archive.org./web/20170630021254im_/https://www.fairfaxstatic.com.au/content/dam/images/1/0/h/0/t/q/image.related.articleLeadwide.620x349.gx1brx.png/1498719458753.jpg)
Yes it's true he's the Don's informally adopted son, his "consigliere", his legal adviser, but there's one thing he'll never be: Sicilian.
And that essentially sums up what it's like to work for a family business. You might be a cherished employee and a relied-upon adviser, but there's one thing you're unlikely to ever be: a member of the family.
That simple fact comes with several repercussions, one of which is the ceiling you'll never crack, but through which you'll constantly look up to see a less competent, less qualified, less deserving member of the family giving orders and getting paid more.
It's a problem owners of family businesses should try to tackle. There's an inevitable impact on morale, productivity and motivation when non-family members – the Robert Duvalls of a firm – feel as though their contribution will never be received with a fair level of warmth and generosity.
That concept of fairness in the context of family businesses is the subject of a soon-to-be-published analysis in the Business Horizons journal. The scholars reviewed every credible study on the topic, culminating in a four-step process they believe helps owners adopt fairer practices between family and non-family.
The first step involves "clearly explaining the expectations for entitlement". This means that prior to signing an employment contract, it's made explicit to all employees precisely the behaviours and achievements that will be rewarded and what kind of reward will be forthcoming. Â
The second step is that "family and non-family employees must be given equal opportunities to voice their concerns with the decisions made". Doing so ensures some voices aren't louder than others just by virtue of their bloodline. It's also a practice that stimulates a greater flow of information and enhances clarity.
But giving everyone a chance to speak up isn't enough, which is why the researchers suggest the third step is paramount. "Correctability … if parties are given equal opportunities to voice their concerns with the decisions made but no action is taken to alter an unfair situation, then giving voice loses its impact." Â
The final part of the process is "the consistent application of decisions across people, over time, and with agreed values and norms". This one's about applying an ethical lens to the way decisions are made. If it appears to employees that judgments are unpredictable or inequitable, disengagement will quickly set in.
That disengagement will just be the beginning. According to previous research, businesses that treat non-related employees differently can end up suffering from "detrimental effects on the family business' reputation, image, long-term performance, and survival".
There's an inevitable impact on morale, productivity and motivation when non-family members – the Robert Duvalls of a firm – are left feeling as though their contribution will never be received with a fair level of warmth and generosity.
Which brings to mind a classic scene from The Godfather. Members of the clan are sitting in the office contemplating revenge. Things get heated. Duvall's character Tom Hagen turns to Sonny Corleone (played by James Caan) and says, "This is business, not personal". A minute later, Sonny turns to Michael Corleone (Al Pacino) and says, "You're taking this very personal … this is business and this man is taking it very, very personal". A minute later, Michael echoes the call: "It's not personal, Sonny, it's strictly business".
Come on, who are they kidding? When it comes to family businesses, illicit or otherwise, it's always very, very personal.
James Adonis is the author of How To Be Great. Follow MySmallBusiness on Twitter, Facebook and LinkedIn.Â
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