KEY POINTS:
When company management starts hiring its own family members it can sometimes be a risky business, says Roman Rogers, South Island general manager for Hudson.
"The hiring of family in whatever context can have a serious impact on the engagement levels of the existing non-family employees," says Rogers,
adding that this is a particularly big issue in Christchurch.
"There are a large number of family businesses in Christchurch that make no secret of the fact that they are a family business. It is about providing ongoing opportunities for their wives, their husbands and their children."
If it's a small family run business, then the community is likely to accept nepotism. But if the organisation has a mix of stakeholders, or is answerable to the investment community, then eyebrows will be raised.
The practice is particularly dubious when the family member hasn't cut their teeth.
"What some family businesses do is they insist that their nieces or children go out and get another role elsewhere first. They spend a period of time, maybe three to five years, in another organisation developing skills and making mistakes outside of the family business," he says. "Then, when they come into the organisation, they have a background and some experience to call upon."
He says someone who is placed in a key role, straight from university with no real world experience, is often a recipe for disaster. The detrimental effect on potential non-family employees is also significant.
"It can cause future employees to question whether they should apply for positions or it could impact on someone looking to consider moving into an organisation because future opportunities or promotions might be blocked."
Rogers says it's no secret which businesses practice nepotism.
"We certainly have a sense of who the organisations are around town that are perceived to be more favourable towards family members. Given the shortage of candidates in this tight market, it's not a good perception for an organisation to have."
Things can really get sticky when it's not a family-owned business and the CEO appoints a family member to a position.
If you're suddenly tasked with supervising the boss's child then it's time to have some serious conversations with the father or mother so you have clear expectations of how things are going to go.
If it's not fair and equal things will quickly turn sour.
"Some organisations have policies where you can't hire family members - typically in a larger corporate," he says. "When non-family members see family members not being charged with the same level of accountability, and decision making is compromised through family politics, it can be very difficult to keep the culture of an organisation together."
What's worse is when the family member you're supervising might have a seat on the board.
"Some managers have a staff member who actually belongs to the family and for who on 29 days of the month is an employee, and then for one day a month comes to the board meeting to oversee the performance of the CEO."
Rogers says there needs to be clear structure to take any family member employees to task for non-performance.
He says it is quite common in New Zealand for a manager, who is not a family member, to have a staff member who is. Particularly if the role has been especially created for them, co-workers will sneer.
"The acid may be on them from day one to actually perform and demonstrate that they are worthy of that particular role."
But in the case of a private, family owned business, nepotism can be quite an effective way of staffing an organisation.
"Family members think the same way. They know the way things are done , so it's about continuity of decision making and leadership of a business. It can be an absolute plus."
Teambuilding within an organisation can be difficult but family members already have years under their belt.
"They think the same way and they can often think ahead of each other. In terms of individual and team performance, you can see some benefit of having family members who have that closer relationship that you don't see necessarily with non-family members."
Todd Bidois began working for his father Brian's building supply company, Ables, when he was just a child.
It was always expected that he would work for the family business. Now he's the general manager and his brother Aaron is a branch manager.
Bidois, 33, says he has never faced any disquiet from non-family employees.
"Because I've been with Ables for so long and started right at the bottom and worked through the system, I don't feel as though I've ever been perceived as the boss' son or been viewed in any detrimental light," says Bidois.
"I've always tried to ensure I'm humble and don't try to push my weight around - on many occasions to my detriment - as that friendship or style has been taken for granted."
Joining the family business is something that was always expected of the Bidois brothers.
"I suppose I was groomed for it as such. Ables is more than a job or a company, it's my father's life's work and it's important that I enhance that as much as I can."
With that type of pressure, it's no wonder that with many family-owned businesses the line between family and business is blurred.
"My dad and I probably spend too much time talking about work. I do try not to when we're outside work hours. But again, because it's a passion and not a job, we tend to fall back to it and sometimes forget where we are. I feel for my mother, my wife and my children as well as friends as work always falls into conversations somewhere."
Working for a family business means you're working for more than just a pay cheque. You're working for the family.
"The major difference from my perspective is that succeeding and doing my best for the company is more important for me than most things in my life," he says.
"It's up there in terms of looking after my family and friends."
It can also put plenty of strain on family relationships, particularly between the first-born son and the father.
"We don't always agree and yes it definitely filters into your home life. But my dad is the leader of our family and a very wise and knowledgeable person, so as leaders always do he ensures we're talking again soon after a disagreement and things are sorted out."
Mixing work with family can sometimes be a battle.
"It's a little like going to war everyday with your mate by your side. The bond is strengthened with friends that face the enemy with you by your side. That's how I feel our relationship is."
Bidois says even though he is a family member, non-family members give him a fair go.
"I hope that our staff and business partners respect me for the way I treat them and my work ethic, not because of my surname or the size of my office. My parents have always taught both my brother and myself to be humble."
