Family businesses come in all shapes and sizes, from a small car shop with just a couple employees to a large organization like Walmart with 2 million. While these businesses can also be privately-owned, companies are considered family-owned when a family controls a majority of the shares.
While each business has its advantages, family businesses are unique in what they’re able to offer as an employer and as a company.
1. Big decisions, fast
Family businesses, especially privately-owned ones, can make big decisions quickly that will result in long-term growth even if that means the company takes a hit in the short-term. According to Harvard Business Review, a perk of working in such an organization is the ability to institute rapid responses.
“Family businesses are well-suited to dealing with this imperative of “rapid response.” They tend to have nimbler and flatter structures, where information flows quickly and easily in to the leaders and decisions come out. There is also often more of a direct connection from the ultimate decision-makers to their employees. While less adept at delegating, they can more quickly and decisively commit the organization to action. The privacy that family ownership allows also helps executives stay focused on strategy rather than meeting market expectations. In Fortune’s last survey of leading CEOs, 84% of CEOs said it would be easier to manage their company if it were private.””
2. Welcoming culture
Family businesses are often thought to have a more
welcoming, family atmosphere. This can be a tricky concept for large companies (500+ employees), but the Conway Center for Family Business reports that large family businesses typically handle this well.
“Family businesses have powerful internal cultures. A study of 114 family firms and 1,200 other large companies for their organizational health found that family-owned businesses scores significantly higher on things like worker motivation and leadership.”
For small businesses (fewer than 100 employees), flexibility is typically a perk whether they are family-owned or not. Many employees in family businesses will go above and beyond their job duties to help colleagues because, at the end of the day, the job needs done and the company depends on it. According to Retail Merchandiser, small family businesses have a great formula.
“When you're working with family, it's easier to lay out the ground rules for flexibility and accountability. Family members can support each other coming in late and leaving early to be with their kids, as long as the work gets done and extra hours are tackled on weekends.”
3. Quality
Quality applies to the product produced, the services provided, and the level of customer service received. Customers tend to perceive products, services, and customer service from family businesses to be more trustworthy. The Family Business Consulting Group tells us why.
“Our research found that family ownership was a tremendous asset,” said Mark Pacchini, Worldwide Account Director of Foote, Cone & Belding, Chicago. “For most people, family ownership means that there is a family they can trust standing behind the products.”
Americans prefer products from family-owned companies to those from publicly-held corporations by a wide margin. More than 80 percent believe that family companies make products they can trust versus 43 percent for publicly-traded companies. Others perceived family-company products to be of higher quality.”
Why is quality important to employees? Feeling good about what they do and the company they work for is huge for employee morale. When someone feels pride in their job and employer, being present physically and mentally for work is easier and more enjoyable, and it’s terrific for productivity.
Many family businesses share these traits, but they are all unique in their own ways and can provide benefits others can’t. It’s important to know what you’re looking for in an employer before you start searching for a job.
Does a family business sound like it has what you’re looking for?