This is one of those predictable problems which takes on additional angst because it involves a family member. As a predictable problem, its’ resolution can be proceduralised by specifically mentioning this situation in a family constitution so that there are no surprises if and when a situation like this occurs. But first things first. Why do people underperform? There are 4 reasons, 3 of which are the responsibility of family business management. The person cannot meet expectations The person does not know what is expected of them The person does not know that they are not meeting expectations The person will not meet expectations The first 3 reasons are management issues. Identifying the reason is the start point for the discussion. Are expectations too high? Are expectations too vague? Is the person’s role clear? Are the objectives set SMART? Are there regular reviews of the person’s performance? Is training or coaching provided to help the person … [Read more...]
Why Bother With Employment Contracts?
Sometimes clients say to me that they are recruiting friends to help them start their business or say that they have never had a staff problem so why go to the expense and formality of having an employment contract, particularly when they have either known each other or been working together for years without a problem. Legally employees need to have a contract of employment within two months of starting work. It confirms what was agreed at interview so there is no room for doubt. This works both ways. Often nothing is written down at interview so ‘promises’ made can be conveniently remembered or forgotten. It also starts the relationship off on a professional footing. Then an MD may source a standard employment contract from the Internet believing the job is done. This may be appropriate for a simple business but rarely are businesses simple and staff matters are often complex. Thinking about what you want from an employment relationship is often time well invested and will … [Read more...]
