Sample Family Employment Policy

The sample Family Employment Policy (FEP), below, provided by the University of Connecticut Family Business Program,  was developed by John Santa, vice chairman of Santa Holding Company in Bridgeport. “An FEP is highly recommended for family businesses,” says Priscilla M. Cale, Director of the UC Family Business Program. “Even if it is not formally adopted by current management, a successor who truly wants to get great experienc—and overcome the concern from colleagues (even if unmerited) that s/he is entering because they have the ‘right last name’— will follow these principles on his/her own.”

__________ Company

Family Employment Policy

Ratified _____

Purpose:

The purpose of this policy is to define the procedures, process, and criteria that will govern how the __________ family members/descendants and/or their spouses enter and exit from the family company’s employ.

This employment policy is intended to help remove any ambiguity that may occur with potential family members’ employment within the Company, so that interested family members can shape their career paths accordingly.  This will also enable the company to benefit maximally from the talents and gifts of family members.

We believe that clear, constructive communication of this policy will contribute to the long-term success of both our family members and ______________ Company.

Policy:

We are a family committed to our members and descendants being responsible, productive, and well educated citizens who practice the work ethic and make constructive contributions to our firm, the local community and the world at large.

Each member is encouraged to develop and use self supporting, marketable skills that contribute to the enhancement of his/her self esteem and independence.  We believe that for a family member to be employed in this company, there must be a legitimate job and the skills to match.

It is the policy of this Company to search out and employ, at all levels, individuals who have the ability to manage vertical and horizontal relationships, who show evidence of ability and willingness to take initiative, who exhibit self-confidence and high self-esteem, and who are both independent and responsible in managing their lives and their jobs.

We subscribe to the philosophy that the opportunity to be employed in our Company must be earned; it is not a birthright.  Our business succeeds best when professional competence is the criterion for entrance to employment.  Further, high level competence must be supported by a sustained performance record.  We believe that family members who cannot meet these standards will be happiest when employed elsewhere, and their family’s firm will have a better opportunity for continued success without their direct efforts.

General Conditions:

1. Family members must meet the same criteria for hiring as non-family applicants
2. Family members are expected to meet the same level of performance and follow Company procedures required of non-family employees.  Like non-family employees, they will be subject to Performance Reviews and to the same rules regarding termination.  Such action should be taken with the advice and consent of the President and/or the Chairman.
3. As a general principle, family members will be supervised by non-family members
4. Compensation will be at “fair market value” and equitable with other similar positions held within the Company.
5. Family members seeking permanent employment must have a college degree and at least three (3) years of work experience in an appropriately responsible position outside the company, preferably with one company and with at least one promotion during their tenure.  It is our view that if a family member is not a valued employee elsewhere, then it is not likely he or she will be happy or useful in the __________ Company.
6. On a case to case basis, family members may be employed in a permanent, entry level position, that is, a position that requires no previous experience, training or college degree.  However, if such family member desires to apply for a management position, or wants to grow into a management position, all of the above conditions will apply.

Applying for a Position:

1. Family members must make their interest known in writing to the President and/or Chairman of the Board of __________ Company, by filling out an application, or forwarding a resume, along with a cover letter indicating their particular field of expertise and/or areas of career interest.
2. When a position becomes available, only family members who have expressed an interest in employment in writing will be informed of the opportunity and considered for the position.
3. They may then submit their resume and complete the normal application form for appropriate processing and consideration.

Internship Program:

In order to promote better understanding of company business, family members will be encouraged on a job availability basis to take advantage of the __________ Company internship program.  The internship program will not extend beyond six months of duration and will have to be submitted and approved by the President & CEO.

Succession:

The size of our Company also necessitates our reliance on non-family professionals.  These industry leaders bring fresh ideas into our business and, thus, renewal to our family and to our business.  The Board reserves the right to appoint a non-family member in the position of President/General Manager.  Also, the Board will support the President/General Manager in his appointment of a non-family professional to any other Senior Management position.

Any additional questions regarding this policy can be directed to the President and/or Chairman of the Board.