Family-owned businesses tend to lose their edge as less than qualified relatives assume executive positions. If this describes your family-owned business then you know how difficult it is to remove those individuals from those roles.
When firing a relative, it is critically important that you have the appropriate Human Resources infrastructure in place, i.e., Performance Reviews, Defined Job Titles, etc. If you lack this infrastructure, you are putting your business at risk if claims of illegal termination are made against you.
Other considerations a Family-owned business must contemplate is Intellectual Property (IP). If your business has IP and it has not been assigned to the company, relatives can leave the business and still claim partial ownership of your trade secrets.
Ceyero Consulting can help you “right-size” your family business and eliminate resources that do not contribute value.
Contact Ceyero Consulting for a FREE one-hour consultation.
Software & Tools:
Skill DP Pro - Know Your Employees' Strengths, Weaknesses, and Training Needs.
Zenefits - All-in-one HR software that saves you time
Suggested Reading & Podcasts:
How to Fire a Family Member Without Destroying the Family -- and the Business by Kathy Kolbe and Amy Bruske
Family Business Governance: Maximizing Family and Business Potential by C. Aronoff