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Human resources (HR) is a cornerstone of your business’s health. It ensures smooth operations and harmonious workplace relationships covering areas including recruitment, training, performance management, employee relations and much more. HR is complex at the best of times, but in family businesses, the delicate balance of regular HR duties and family politics can make it especially challenging.
In 2024, it’s pretty much agreed that HR should be seen as a strategic partner rather than just a support function. The rise of the chief human resources officer (CHRO) is a testament to that change, and the strategic relationship between HR and every aspect of the business – including a seat at the leadership table – is never more crucial than when dealing with a family business.
Here, we discuss how HR functions in a family business environment in comparison to a conventional company, and I’ll argue that it’s only when HR is used strategically that many of the problems associated with family-run enterprises can be mitigated.
How HR functions in a conventional company
Let’s start with a quick recap of what we might expect from HR in a typical organisation that is not family-based. In such companies, HR plays a crucial role in recruitment, onboarding, training, and development. HR also evaluates employee performance, develops compensation and benefits packages, and ensures compliance with labour laws and industry standards.
Since all of these points apply to any business, the next question is, what specific issues will HR need to address in family-owned companies?
Unique HR challenges in a family business
Family-owned businesses often benefit from strong commitment, loyalty and long-term vision – and they have the potential to foster a unique culture and the kind of personal touch that can enhance customer relations. But here is what I see as the specific challenges for HR professionals when it comes to working with these types of companies:
Clarifying organisational structure and roles: In large and complex family businesses, it’s essential to clearly outline responsibilities and expectations for each role to ensure smooth operations and employee satisfaction. These things can get a little tangled in family businesses when they start and often fail to get untangled as they grow. So, well-defined organisational charts can help with this, as well as ensuring that each team member truly knows their role, their position within the company, and how it contributes to the company’s goals.
Succession planning and hiring: To my mind, this is the biggest challenge because succession planning is critical for the survival and continuity of a family business. The problem here is that there is often insufficient planning ahead of time, and not enough consideration is given to what an external candidate might offer. Equally, insufficient work is done to develop a pipeline of capable internal candidates ready to step into key roles. All of this must be executed within the family’s overall vision for the business while balancing it with what will make the company competitive in the long term.
Mitigating legal risks: Navigating employment laws and regulations can be particularly challenging for large family businesses that may have grown without an HR front and centre. So, any incoming HR professional must ensure compliance with labour laws and employment standards to reduce the risk of costly legal issues. This proactive approach helps protect the company’s financial interests and maintains its reputation with employees, customers and the community.
Embedding culture and values: Family businesses often have unique cultures and values that reflect the family’s beliefs and aspirations. HR must ensure these core values are integrated into all aspects of the organisation – from recruitment to daily operations. This helps reinforce the company’s identity and fosters a strong sense of belonging and loyalty among employees. Effective onboarding and exit interviews can also enhance this company culture.
Balancing family and professional dynamics: We talked about workplace harmony as a duty of HR in any organisation, but when we look at family businesses, we find that professional relationships can be particularly complicated. HR must navigate the delicate balance between family loyalty and fair treatment of non-family employees, ensuring that if favouritism or conflicts of interest arise, they are dealt with quickly and fairly. Establishing well-defined policies is crucial, as is creating guidelines for family involvement in the business, conflict resolution procedures, and professional boundaries.
Family and non-family communication: As an overall principle, encouraging open dialogue between family members and non-family employees can help address issues before they escalate. Regular meetings and feedback mechanisms can promote transparency and inclusiveness.
When to hire from outside
As noted above, hiring from outside will be one of the biggest challenges for HR in a family business. However, bringing in external hires – whether in leadership positions or more junior roles – can introduce fresh perspectives and innovative practices that might not be present within the family. This infusion of new ideas can help the business adapt and grow in a competitive landscape.
While sometimes they are indeed the best person for the job, family members may sometimes lack the specific skills or experience needed for certain roles, making external candidates more suitable. Hiring externally can also help maintain objectivity, providing an impartial viewpoint that helps balance family dynamics.
Who should perform the HR role in a family business?
We have discussed the specifics of HR’s role in a family business, but who should head up HR itself? In the early stages of a business – family-owned or otherwise – HR responsibilities may be assigned to someone with another primary role within the company. In this kind of scenario, the HR function can suffer from neglect, especially if the person in charge lacks formal HR training.
A specific problem arises if the person in charge of HR is a family member, and the lines between personal and professional responsibilities start to blur. The family dynamics of mutual support and loyalty can conflict with the business’s need for adherence to regulations. So family members in HR positions must ensure they follow established HR protocols, rather than allowing personal relationships to influence their decisions. The alternative to this is bringing in an external head of HR (or CHRO) who may be able to help the company by giving more objective advice and guidance.
HR’s role in family businesses is not just about managing personnel but also about fostering a supportive environment that aligns with family values and business objectives. By embracing a strategic approach and integrating HR practices with broader business goals, HR can significantly enhance family-run enterprises’ overall performance and cohesion.
As we have seen, navigating the intricacies of a family business presents unique challenges for HR professionals. While they must perform traditional HR functions such as recruitment and performance management, they must also address the complex interplay of family relationships, succession planning and fairness.
By developing clear policies, fostering open communication and considering external expertise, HR can effectively balance family dynamics with professional needs, ensuring the long-term success and harmony of the business.
The writer is the founder and CEO at Talent Higher.
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The two announced a strategic partnership in July 2023 with the aim of simplifying and improving connectivity on a global scale
From this final quarter of 2024, Telenor’s IoT customers with connected devices in the US can gain “seamless local access” to Verizon Business’ cellular IoT network in the US. The partnership with Verizon Business will complement Telenor’s global roaming access and give Telenor customers the option of eSIM-based local access on Verizon’s network in the US.
Telenor IoT provides access to networks in more than 200 countries using a combination of roaming and local access. The operator says this is an important step after the strategic partnership it announced in July 2023 with Verizon Business, aiming to simplify and enhance connectivity on a global scale.
TJ Fox, SVP of Industrial IoT and Automotive, Verizon Business, stated, “Verizon Business is proud of its relationship with Telenor for reciprocal IoT connectivity in Verizon’s expansive US footprint and Telenor’s EMEA and Asia-PAC coverage areas. Global reach is increasingly important for our customers who do business across international borders, and partnerships like this one help our customers maintain seamless connectivity to their expanding fleets all over the world.”
Single pane of glass
The latest announcement means customer will have full control and can manage their devices through a single pane of glass, according to Telenor, optimising and managing connectivity or choosing when to use roaming and when to use local network access. At the press of a button, a device can switch to a Verizon Business eSIM to access Verizon’s network infrastructure across the US.
Telenor states that customers can benefit from lower latency and higher data throughput which is particularly important in applications like payment solutions for consumers. Also, the move is designed to ensure that customers can get the performance they need for demanding 5G applications, like real-time data and high bandwidth uses. It also helps meet regulations for certain services that require data to stay within a specific country.
Strategic investment
Mats Lundquist, CEO of Telenor Connexion and Head of Telenor IoT, says, ”This is an important step in our strategic investment in expanding network availability and quality of service for our international customers. Through our partnership with Verizon Business, we offer the opportunity to deploy devices on the best network in the US while maintaining a single global SKU [stock keeping unit] and seamless management of connected devices.
“We have a clear commitment to constantly working on improving IoT services for our customers and have a strong roadmap to expand both local network access and regional points of presence network.”
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According to the Small Business Administration, there are more than thirty-four million small businesses in the United States as of 2024. Of those small businesses, approximately six hundred thousand fail each year. A crucial key to avoiding being part of that statistic is getting the most out of your business plan in 2025.
Four ways to extract the most out of your business plan immediately exist.
Treat Your Business Plan Like A Living Document
Under no circumstances should you view your business plan as an exercise you merely performed when starting your business to get funding. Your business plan is and should be treated as a living document. That means you should update your business plan regularly and adjust it to fit the most current trends in your industry and the business environment.
Within your business plan, you should establish OKRs (objectives and key results) and KPIs (key performance indicators) that enable you to track your business’s performance monthly, quarterly, and annually.
You may need to adjust your marketing budget, staffing levels, or focus areas to maximize your operating efforts. How do you implement these changes? Dividing your annual target into monthly goals is an easy way to start. You then take those monthly goals and make someone in your organization responsible for achieving one of those goals. After you make them responsible for the goal, train them on how to achieve the goal repeatedly, and finally, hold them accountable for the goal you assigned them.
Include Plans For The Unexpected
If there’s one certainty in life and business, it’s uncertainty. Are you ready for an emergency? Millions of companies across the United States were not prepared for the economic upheaval of the 2020 pandemic. No one knew how long it would last or how far it would spread, but one truth became clear: businesses were poorly equipped to handle disruptive events.
Today, this lesson remains critical. Forward-thinking businesses are incorporating resilient strategies into their plans—contingency budgets, scenario planning, and adaptable operations—to ensure they’re prepared for whatever comes next.
According to the Federal Reserve’s report on employer firms, 94 percent of US employer firms experienced financial challenges in the 2022-2023 fiscal year. While it’s nearly impossible to predict a black swan event or financial disruption will be coming, there are a couple of methods that small business owners can use to prepare for unexpected financial challenges.
Firstly, run a profitable business. Many small businesses operate on a razor’s edge with very slim margins. Monitor your company’s waste and labor costs to ensure that your employees are maximally productive during work hours. If you provide a service, ensure that your utilization rates per employee hour meet a certain threshold before you hire more employees.
If you own a product-based business and you manufacture, make sure your cost-of-goods-sold numbers are dialed in and are not bogged down by inefficient manufacturing processes or the creeping cost of direct labor.
Secondly, once you ensure profitability, set aside money for emergency savings in a business savings account; this account will allow you to have cash reserves for emergencies like working capital, emergency repairs, or payroll if you find yourself in a cash crunch.
Always Be Refining
As a business owner, you must continue to look for ways to become optimally efficient in every role in your firm. During your annual business plan review, you should monitor the cost of delivering your service or running your business and see where you can reduce bottlenecks.
In this modern age, AI is moving at the speed of light. The adoption of AI is making business highly efficient in many functions. While you may not be too savvy with AI, you may be using software that has already implemented AI in its delivery. Search for a software solution that can do more with less work from your company. Do not be afraid to change CRMs or ERPs if they do not fit the plan.
Without Execution, You Have Nothing
A plan is just ink and paper unless there is action. It would be best if you were involved in every part of your business’s planning. Set the proper elements of the plan in motion and make adjustments along the way. Imperfect action is better than no action at all.
Your employees and stakeholders rely on you to hit your targets, so you must work daily to mobilize the best possible outcomes for your business plan. Remain adaptable to the changing business landscape and constantly monitor consumer sentiment around your industry so you can stay ahead of the changing attitudes and buying habits of customers who purchase your product or service.
The end of the year provides an opportunity to gain valuable insights into what has been working and what hasn’t in your business. Take the last few weeks of the year to nail down an adjusted plan for the upcoming year, and you will automatically be in the 90% percentile of accomplished business owners.
Delight Ratesh (second right) the founder of Delight Book Club and some members. Delight is a programme that aims to ensure children in Kisumu become better readers and writers. [Photos Michael Mute, Standard]
With the rise of mobile phones and social media, there has been a worldwide decline in children’s ability to read for meaning. However, encouraging and developing a love of reading this holiday season is one of the most important gifts parents can give their children, with benefits lasting throughout their lives.
By integrating reading into daily life from a young age, and making it an enjoyable activity, parents can help their children develop a lifelong love for reading, thereby improving their prospects of personal and academic achievement.
Reading enhances mental agility, sharpens focus, and improves analytical thinking skills. It requires concentration and memory retention, which can lead to better cognitive function over time. Regular reading exposes individuals to new words and phrases, thereby expanding vocabulary and improving communication skills. This is crucial for both personal expression and professional success.
Books are a rich source of information, enhancing general knowledge across various subjects. This knowledge base is particularly beneficial for children as they begin their formal education. Exposure to well-written material helps improve one’s own writing abilities by providing examples of different styles, structures, and vocabularies.
Developing a reading habit early in life lays the foundation for lifelong learning. It nurtures curiosity and a desire for knowledge that persists well into adulthood. Reading stimulates the imagination, encouraging creative thinking and problem-solving abilities. It allows readers to explore new worlds and ideas, which can inspire innovation in various fields.
Regular reading has been linked to lower rates of depression and anxiety. It promotes relaxation and can contribute to better sleep patterns, enhancing overall mental well-being.
Second-hand books are often affordable, and libraries are free. Therefore, it is within reach of most people to fill their home with a variety of books that cater to a child’s interest and reading level. Parents should model reading behaviour, by also spending time reading physical books. If possible, set aside a specific time each day for reading. This could be before bedtime or after school. Consistency helps in forming a habit.
Excessive screen time can negatively impact children’s development. Many schools are now limiting mobile phone usage to encourage more focused learning environments. Screentime at home can be balanced out by having reading timeouts. This applies to both child and parent.
There are however reading apps and platforms that can promote reading and can be incorporated in making reading a fun activity. Just be sure to also include non-screen reading.
Encourage children to engage with books before diving into the text by taking time for ‘picture walks’, where they can flip through pages and explore the illustrations. This approach helps minimise distractions and prepares them for a more focused reading experience.
Consider using the “5 W” principle—asking who, what, when, where, and why questions about the book—to spark discussion and curiosity. Before reading, ask children what they think the story might be about, and always include the follow-up question, “How do you know that?” This encourages them to articulate their thoughts and develops metacognition—thinking about their thinking—making the reading experience richer and more meaningful.
Ms Birkenstock is Executive Principal, Crawford International School Kenya
This is a press release from Smart Elections, published on Substack and elsewhere- editor. New York, New York – – As electors in each state are voting for President and Vice President today, SMART Elections, a nonpartisan organization focused on security and public oversight of U.S. elections, is releasing a comprehensive analysis of the 2024…