New research shows employees are happiest in family businesses
Employees in family businesses are more satisfied with their jobs, study shows
Joint research by Cass into the relationship between employees and managers shows that employees are happiest in family run businesses compared to those in other firms.
The Institute for Family Business (IFB) Research Foundation with UCG report - produced by Cass, Warwick and Birmingham Business Schools - found that people working in family owned and managed businesses are more satisfied with their jobs giving these firms an advantage when recruiting and retaining staff.
The report, 'Family Business People Capital', finds that employees in family businesses:
- are more likely to regard their managers as good at responding to suggestions and allowing them to influence final decisions;
- are more likely to report managers can be relied on to keep their promises and treat employees fairly;
- report greater job satisfaction with regard to the sense of achievement they get from their work, the scope they have for using their initiative and the amount of influence they have over their jobs;
- are more satisfied with their job security;
- and report greater loyalty to their business.
Cass Professor Nick Bacon says: "The Family Business model clearly has advantages when it comes to managing and motivating employees, even when they lack the formal HR structures one might expect to see in place. However, when owners step back from managing business directly, and became governing owners, the lack of formal HR structures becomes more of a problem."