Workplace Trust and Non-family Employees
Let’s get honest—really honest—for this discussion. Do you trust your employees the same way you trust the family members or close friends who help run, or even partially own, your organization? Are you actively building workplace trust for your non-family employees?
Based on my decades of leading or helping operate a family business, I’d guess many of you who are involved in similar organizations—whether for-profit or non-profit—would answer “no” to these questions. And honestly, that makes sense. You’ve known your family longer and more intimately than your employees. You just know them better.
But here’s the issue: workplace trust is a powerful construct. Trust is woven into nearly every element of a strong organizational culture—and culture is what drives performance. When employees feel they aren’t trusted, performance suffers.¹
The Real Meaning of Workplace Trust
However, we need to clarify what workplace trust means in this context. I come from a mostly retail background, so I’ve dealt with my fair share of shrinkage—also known as theft outside the retail world. And while customer theft leads the way, employee theft is reported as the second-highest cause of shrinkage.²
And let me tell you, I’ve seen some incredibly creative ways employees have stolen from my businesses. So no, I’m not talking about blind trust or removing controls. I’m talking about trusting people to do their jobs without being micromanaged—and respecting their right to have opinions that might differ from yours or your family’s.
Familism: A Hidden Risk
Let’s dig a little deeper. One thing that sets family businesses apart is the dynamic between family and non-family members. When family members hold top leadership or ownership roles, they often push the interests of the family along with—or even above—the interests of the business. This is known as familism.¹
And it’s a risky path—especially if your goal is a high-performing team. If your hiring decisions prioritize people who “get along” with your family over those who are truly competent, your business may suffer. Worse, you may unintentionally create groupthink and discourage psychological safety.
Hire for Talent, Not Family Fit
Here’s what I’ve learned: don’t hire people because they fit into your family. Hire them because they have strong social skills, real competence, and fresh perspectives. The best employees are the ones who can speak up respectfully when they disagree—and if you’re leading well, you’ll recognize the value in that, even when it challenges family opinion.
And don’t overlook the power of praise. When your non-family employees speak up skillfully, acknowledge it. Praise goes a long way in reinforcing the kind of culture every healthy organization needs.
Key Points
- A lack of workplace trust in non-family employees can lower morale and performance.
- Family business culture may prioritize family harmony over employee competence.
- Building trust means hiring for diverse perspectives, not just family fit.
- Recognizing and praising non-family employees fosters a positive, high-trust work environment.
Sources
- Hiebl, M. R. W., & Zhen Li. (2020). Non-family managers in family firms: Review, integrative framework and future research agenda. Review of Managerial Science, 14(4), 763–807. https://doi-org.northernkentuckyuniversity.idm.oclc.org/10.1007/s11846-018-0308-x
- Magazine, L. P. (2019, February 27). What Causes Shrinkage in Retail? Addressing the 4 Top Causes. Loss Prevention Media. https://losspreventionmedia.com/what-causes-shrinkage-in-retail-addressing-the-4-top-causes/
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