Unlike the dramatic power struggles depicted in HBO’s “Succession,” real-life family businesses can offer rewarding career paths when approached thoughtfully. With an estimated 32 million family businesses operating in the United States alone, these enterprises represent a significant portion of the American economy and workforce.
Whether you’re considering joining your family’s company or already working in one, understanding how to navigate the unique dynamics of family-owned businesses is crucial for both professional success and personal satisfaction.
Benefits of Working at a Family-Owned Business
Family-owned businesses provide a work environment shaped by loyalty, shared values, and, often, long-term vision. For employees, this often translates into deep personal connections, faster growth opportunities and a strong sense of purpose. Here are some of the unique benefits of working in a family-run company.
Job Security and Long-term Stability
Family businesses often prioritize longevity over short-term profits, creating an environment where employees—especially family members—enjoy greater job security. Family-owned companies typically make extraordinary efforts to retain staff during economic downturns, viewing employees as extended family rather than dispensable resources.
Close-knit Work Environment
The workplace culture in family businesses tends to be more personal and supportive. Ben Tobin, managing partner at law firm Pratt & Tobin, describes how his father’s guidance mirrored his coaching style: “Sometimes there was tough love, but when he’d critique or be hard on me, I knew it was because he loved me and wanted me to excel.” This level of genuine care and investment in employee growth is characteristic of family enterprises.
Room to Grow Quickly
Working in a family business often means faster paths to leadership roles and hands-on experience that might take years to access elsewhere. Take Ben Tobin’s journey. After his father passed away, he stepped into substantial responsibilities at Pratt & Tobin, eventually becoming managing partner.
This kind of accelerated growth provides family members the chance to develop a wide range of skills as they touch different parts of the business, something that might remain out of reach for years in larger corporate environments.
Shared Values That Matter
Most family companies are built around deeply held beliefs and principles that stay consistent as the business passes from one generation to the next. When your personal values match those of the company you work for, it transforms the daily grind into something more meaningful.
This natural alignment helps explain why many family business employees feel a deeper connection to their work and a stronger commitment to seeing the company succeed over the long haul.
Flexibility and Autonomy
Family-owned businesses generally offer greater flexibility in work arrangements. As Ben Tobin noted, his firm is adapting to accommodate growing families by establishing home offices and implementing digital solutions that enable seamless remote work—decisions that can be made quickly without navigating corporate bureaucracy.
Challenges of Working at a Family-Owned Business
While there are many advantages to working in a family-owned business, it also comes with its own set of complexities. Blurred boundaries, unspoken expectations and interpersonal dynamics can create tension that affects both work and personal life. Here are some of the most common challenges faced by those working in or with family-run companies.
Navigating Family Dynamics
One of the most significant challenges is separating family relationships from professional ones. Ben Tobin’s approach illustrates a healthy balance: “One, he’s my dad, and I’m going to listen to him and do what he says because he’s my dad, and two, he’s my boss, so I’m going to listen to him and do what he says because he’s my boss.” Still, not all family relationships transition smoothly into the workplace.
Succession Planning Obstacles
Transitions of leadership in family businesses can be emotionally charged and complex. As Holly Geerdes, founding attorney of the Estate Law Center USA, observed: “We have a lot of parents who just assume and wish and pray that their children are going to come into the business, but they don’t have that conversation.” Without explicit discussions and formal succession plans, leadership transitions can create significant tension.
The “Just Because You’re Family” Shadow
Walking into the office with the same last name as the boss puts a target on your back. Non-family staff often watch closely, wondering if you’ve earned your spot or just showed up at the right family reunion. This scrutiny means family members typically have to work twice as hard to prove themselves, going above and beyond to demonstrate they bring real value to the table, not just DNA. The constant pressure to justify your presence never quite goes away, even after years of solid performance.
When Work Never Leaves the Dinner Table
In family businesses, “leaving work at work” is often just a nice idea, not a reality. Sunday dinners turn into strategy sessions, holiday gatherings become budget discussions, and disagreements about inventory can spill over into personal grudges. The line between professional colleague and beloved relative gets dangerously thin.
Without intentional boundaries—such as designated no-work zones or specific times when business talk is off-limits—family relationships can suffer under the weight of unresolved workplace tensions.
The Echo Chamber Problem
When everyone in the leadership team grew up with similar backgrounds or shares the same last name, fresh thinking may be rare. Family businesses often get stuck in “that’s how we’ve always done it” patterns, closing ranks against outside perspectives that might challenge tradition. This insularity can slowly suffocate innovation, leaving the company unprepared as markets evolve and competitors adapt. Without deliberately seeking external viewpoints and expertise, even successful family operations risk gradually falling behind the curve.
Hiring and Employing Family Members
Establishing clear expectations and formal processes is crucial when bringing family members into the business.
- Create formal job descriptions and performance evaluation systems for all employees, including family members.
- Establish transparent compensation policies based on market rates rather than family position.
- Require external work experience before joining the family business.
- Provide mentorship from non-family executives to develop objective feedback channels.
- Document policies for hiring, promoting and potentially terminating family employees.
Many successful family businesses, like Pratt & Tobin, benefit from allowing the younger generation to choose their own path rather than pressuring them to join. Ben Tobin’s father never pushed him toward a legal career, which ultimately allowed Ben to make the choice authentically when he recognized the opportunity it presented.
How to Thrive in a Family-Owned Business
Whether you’re a family member or not, these strategies can help you navigate the unique environment of a family business.
- Maintain professionalism in all workplace interactions.
- Establish clear communication channels and regular business meetings, separate from family gatherings.
- Respect the chain of command, even when family relationships might suggest shortcuts.
- Address conflicts promptly and directly, using neutral mediators when necessary.
- Develop skills that complement rather than duplicate those of other family members.
- Embrace the opportunity to shape the company’s evolution.
Is Working at a Family-Owned Business Right for You?
Before joining a family enterprise, consider these key questions:
- Are you genuinely interested in the business, or merely fulfilling family expectations?
- Have you gained valuable experience outside the family business?
- Can you separate personal relationships from professional ones?
- Are you prepared to potentially work harder to prove yourself?
- Do you share the family’s vision for the business’s future?
As Ben Tobin’s experience demonstrates, joining a family business by choice rather than obligation creates a foundation for success. “I called my dad, who never pushed me to be a lawyer—no one ever did—and said, ‘Hey, Dad, I think I’m going to take the LSAT and try to go to law school,'” he recalls. This voluntary decision allowed him to bring authentic enthusiasm to his role.
Family businesses offer unique opportunities for meaningful work, accelerated growth, and the creation of multi-generational legacies. By approaching them with clear communication, respect for established processes, and thoughtful consideration of both personal and professional dynamics, you can build a rewarding career while contributing to your family’s enduring success.
Photo by Nestor Rizhniak/Shutterstock
