The decision to bring the next generation of family members into the family business is often stressful. Questions of birthright, entry criteria, and roles and responsibilities are difficult address and often result in no conclusion to the detriment of both the business and the family member.

However, with clear communication, and a bit of love and respect, decisions of when and how to allow family members to enter the business can be easier. We offer three tips to bringing on board the next generation, including:

1. Decide Whether Birthright Is a Free Pass to Your Business
   Each family business is different on how it treats the subject of birthright. There are some that consider birthright as an automatic criterion for entry into the family business. There are other family businesses that consider birthright one of many factors for entry. While there are cases for and against considering birthright as a ‘free pass’ to enter the business, we most often recommend that business families consider it as one of many entry criteria to meet. After all, just because they ‘grew up’ in the business doesn’t mean that they know the business.If a family member shows interest in joining the family business based on birthright, this could open the doors for a deeper discussion on he or she wants to be a part of the family business. Take time and listen to next generation members – are they truly excited to be a part of the business or do they consider it an obligation or worse, an easy way out? Are they hoping to repair a strained relationship with another family member, or are they looking to reconnect with their family legacy? Through open communication, you may be able to uncover their true motivations, and determine whether a move into the family business would be the best step for everyone involved.
   
2. Build a Solid Foundation of Entry Criteria
   Beyond birthright, consider what your preferred criteria for entry are when bringing on board a member of the next generation:
   • Do you require family members to reach a certain level of education before entering the family business?
   • Are members of the next generation required to work for a certain number of years outside of the family business before gaining entry?
   • Are incoming family members required to enter at a certain level (i.e. – an associate/managerial level), or are they automatically given major leadership roles?
   • How do you educate new members of the family business on your family legacy and history? Is it learned over time, or do you share your story at the start of their employment?
   • Do all family members in the business take part in the strategic planning process, or is it limited to your executive leadership?
   • Are family members working in the business automatically granted the right of ownership, or is it earned over time?
   • Do you have a formal leadership development plan and, if so, are all family members given the opportunity to participate?

   
   No matter what your entry criteria are, make sure to articulate them clearly and consistently, both with your employees and members of your family. Not only will this help minimize any issues of entitlement in the next generation, but will address expectations and outline an entry path into the family business.
   

3. Determine Roles and Responsibilities Before Entry
   Another major factor to consider before bringing on board family member is clarity on roles and responsibilities. This is one of the top challenges for family businesses simply because the expectations of the senior and incoming generations often differ greatly:
   • Is this a full or a part-time position?
   • To whom will this family member report?
   • Where will they work? Is this an in-office position, or will they be allowed to telecommute or consider flex time as part of their employment arrangement?
   • What is their projected career path within the family business? What about the potential for leadership?
   • What is the culture of the enterprise? Does it support personal development and growth, as well as a work-life balance for employees?
   • What are the boundaries between family and business? Is this an operation that’s discussed during Thanksgiving dinner, or is there a clear line between work and family life?