Should Your Family Business Have a “No In-Laws” Policy?

Should in-laws, even if they’re highly qualified, work in the family business? While there’s no “one-size-fits-all” guideline, if you are considering involving in-laws in the family business, it’s important to think through some general policies in advance. Document a family work policy. The policy should define “family” and specific rules for how the different types of family can work in the business. There should be rules on reporting structures, succession plans, and who is allowed to revise such policies. Develop solid HR practices for reviews, bonuses, and terminations for all employees, as well as transparency around promotions and authority. Before you invite in-laws into the business, know how you will get them out. Most employees are at-will, but family isn’t at-will, so spell out your concerns in advance, document performance results, and have a predetermined trial period to review. This also creates an environment that feels safe and fair.