Employing family members and voluntary staff

Here's how our business overcame the pitfalls of employing family members

Mill on the Brue Outdoor Pursuits Centre in Somerset employs three members of the Rawlingson Plant family. The centre welcomes over 7,000 customers every year, ranging from schools to corporate clients. Matt Rawlingson Plant explains how planning and good communication have helped the company avoid the potential pitfalls of a family partnership.

What I did

Plan ahead
"My parents started the business 23 years ago, so I've grown up with it. While they always left the door open for me and my siblings to join, they were also keen that we should have experience outside the company before making any decisions.

"I spent time as an officer in the Royal Tank Regiment, completed a degree in International Business and Marketing and worked for two years as a financial consultant, specialising in process management.

"Between the army and financial consulting I returned to Mill on the Brue to work on a number of projects for my parents. It was a good opportunity for them to assess my skills and suitability, and for me to prove my worth to other staff members before I joined full time as finance and e-marketing director in 2004."

Get outside advice
"We got involved with Business Link Somerset and attended several of their Family Business Days for advice on succession planning and other aspects of working with family members. Open discussion with other family businesses has been invaluable.

"We also work with a small business consultant who acts as our mentor and knows our company well. Her input has been extremely useful. She provides an objective, neutral point of view that helps to preclude potential family clashes and keeps us focused on business goals."

Communicate openly
"We anticipated a certain amount of staff resistance to a family appointment, so we held away-days with the existing management team to plan and discuss the new role. Employing family members does complicate the dynamics of workplace relationships. We work hard to communicate with staff and avoid any hint of favouritism.

"We have weekly management meetings which include family and non-family members and open discussion is encouraged. Although we rarely have arguments, we do tend to be extremely frank with each other. Having non-family members present helps to curb any excess.

"Running a family business also makes it harder to "switch off" at home which can create tensions. It's important to maintain outside interests to combat this tendency."

What I'd do differently

Involve staff earlier
"Looking back, we should have started talking to staff about the options for succession, and the possibility of a family appointment, at an earlier stage."

Use performance-related pay
"Linking financial reward to performance targets is one of the best ways to avoid suspicions of preferential treatment for family members. Performance-related pay would have been a good measure of my contribution to the business in the early stages."

Subjects covered in this guide

• Introduction
• Family employees - consider your motives
• Family employees - minimising business risks
• Preventing communication breakdowns
• Employing your spouse
• Employing younger family members or volunteers
• Voluntary staff - points to consider
• Voluntary staff - contract rights, benefits and allowances
• Health and safety issues
• Tax reporting requirements - young, old or voluntary staff
• Here's how our business overcame the pitfalls of employing family members

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Source - Business Link; Crown Copyright.