Family businesses are built differently. They’re driven by long-term thinking, shared values, and the desire to build something that lasts beyond the current generation. But those very strengths can make recruitment more complicated than it is in other businesses.
At TWYD, we’ve worked with many family businesses who come to us for help not because they can’t find candidates—but because the family dynamics around recruitment are beginning to cause strain. Maybe a family member expects to be considered for a role they’re not ready for. Maybe there’s disagreement about what the business actually needs next. Or maybe external candidates are picking up on a lack of structure or perceived favouritism and choosing to walk away.
These are difficult but common challenges. And they’re not just about recruitment. Left unchecked, they can have a wider impact on morale, decision-making, and your ability to move the business forward with confidence.
So how do you reduce the impact of family dynamics on recruitment without losing the very qualities that make your business special?
Here are four practical starting points:
1. Put a transparent recruitment policy in place
Many family businesses make recruitment decisions informally especially in the early years. But as the business grows, it becomes harder to ensure consistency or avoid misunderstandings. A clear, transparent recruitment policy creates structure. It outlines how roles are created, how candidates (family and non-family) will be assessed, who is involved in the decision, and how final decisions are made.
This doesn’t need to be bureaucratic—it just needs to be fair. And it sends a message, both to the family and to the wider team, that roles are earned on merit.
2. Be clear about what the business needs—and what the role involves
Ambiguity creates room for misinterpretation. A strong job description should define responsibilities, outline essential and desirable skills, and explain how the role contributes to the wider business. This is particularly important when family members are considering applying because being part of the family isn’t a qualification.
It also helps external candidates understand the role clearly and decide whether they’re a genuine fit, rather than trying to read between the lines of a vague job spec.
3. Make recruitment an open, ongoing conversation
Tensions often arise when roles are created reactively or discussed in private. Having regular, structured conversations about succession, leadership needs, and future roles helps everyone feel informed and involved. These conversations don’t need to result in immediate decisions but they do reduce assumptions, give people time to prepare, and provide a forum for discussing concerns constructively.
This is especially useful when considering whether to bring in a non-family executive for the first time, or when balancing the ambitions of the rising generation with the business’s current leadership needs.
4. Give decision-makers the tools to do it well
Recruitment isn’t easy and when family relationships are part of the mix, it becomes even harder. Training in structured interviewing, bias awareness, and candidate assessment can help family members and senior leaders feel more confident in making fair, objective hiring decisions.
It also helps reduce the unconscious bias that can creep into even the most well-intentioned processes, especially when emotions are involved.
Why it matters
In today’s competitive environment, candidates have options. They’re looking for employers who demonstrate fairness, structure, and kindness. If your hiring processes feel unstructured or overly influenced by family relationships, the best candidates – both family and non-family may quietly opt out.
Addressing these dynamics early is about more than fixing a recruitment problem. It’s about laying a stronger foundation for your future. The right structures don’t just help you hire better. They help you lead better and make it easier to build a legacy that everyone can stand behind.
Where TWYD can help
At TWYD, we specialise in supporting family businesses at these exact moments, whether you’re recruiting a non-family executive, developing the rising generation, or trying to align the family on what the business needs next. We bring a mix of executive search expertise and family business understanding that helps you get the right person in the right role, while preserving everything that matters most to you.
If you’re looking for people who don’t just fit the role but fit your values, vision, and culture; we’d love to help.
About the Author
Oliver Denton is Chief of Staff at TWYD & Co, a private talent advisory firm working exclusively with family businesses and family offices. TWYD specialises in recruiting non-family executives and addressing the distinct people challenges found in family-owned enterprises.