Letting Family Members Go

ad space

What if your business consultant told you that the intending bankruptcy of the business is caused by the irresponsibility and incompetence of your son? How can you tell him that he has to leave the company without breaking his heart?

It's a question between close family ties and the survival of the business: which of the two needs to be prioritized more? Any employer should always remember that firing any employee can cause heartbreak but firing your own family member can be straight devastating and can create havoc on both personal and business relationships.

Issues tied to a family business can last long and can hardly be resolved. One example is what happened to Goya Foods Inc. where a son of one of its founders began a legal wrangle after he was fired in 1969 for revealing an alleged tax-evasion scheme. The argument continued for three decades.

Effectively firing a family member in a business is almost impossible. The owner who fires a family member may be condemned for his disloyalty by other family members. The one who get fired will turn to other family members and ask for help. This process may not bring to a resolution but it is imperative that business owners must operate a business like a business.

If someone simply isn't up to the job, it's important for him or her to be replaced immediately so that the business will survive no matter if the employee is a relative or not. The business can't allow the fact that someone happens to be a family member to interfere with what the situation demands. If the owner happens to ignore the scenario rather than acting upon it, a bigger and more crucial problem may arise.

It's important to approach the situation as empirical as possible. Explain to the family member the history of his or her performance and explain to the detail the reasons why things aren't doing well. The owner need not sacrifice all the hardships that he devoted in putting up his business just to apiece a family member. It must be clear all throughout that family matters and business matters are two separate entities.

Probably the best way to accomplish a termination without damaging family relationship is through giving them the option of a resignation. The owner has to supply documents that list the reasons why the employee has to leave. It's better to let people resign from their posts with dignity than forcing them out.

It's even easier to prevent malevolent things from happening by not hiring them in the first place, basically if they aren't qualified for the position. The owner should not assume that virtue of blood alone is the best choice for a position.