Family businesses are a patriotic duty

Many owners of family firms treat their employees as part of the extended family - something that can lead to increased productivity and retention in the workplace, writes Rasheeda Haddish, from Oxford Strategic Consulting.

Most GCC nationals prefer to work in the public sector. However, the minority that elect to work in the semi-government and private sectors know that non-public companies can vary considerably in their culture.

For example, family firms in the GCC are different than their non-family run counterparts. Family firms offer employees the opportunity to shape their country’s development, build the family reputation and forge a unique relationship with business owners. The dynamics between family firms and their employees are unlikely to be found in your typical business textbook case study, but they are certainly worth your attention.

Many GCC family firms emerged in the region’s transformative years of the 1970s, and consequently their legacies are aligned with the development and strategic goals of their respective countries. As these companies grew over time, employees often remained with the firm because they wanted to contribute to the continued success of their country.

The history of foreign activity and intervention in the region contrasts with the social responsibility shouldered by many GCC family firms. That this responsibility is assumed by local business leaders means that GCC family firms and employees are working for a united purpose – the continued success of the company and the country.

Yet the family also plays a central role, and consequently most GCC firms are interested in building and maintaining the family’s reputation. More often than not, owners run their companies by adhering to the family values that were instilled in them at home. Employees respect positive family values that owners bring to the workplace because they can relate to these values.

However, it is critical that owners use positive family values and emotions and minimise the negatives – as our research found that certain emotions can have a damaging effect on engagement and productivity in family firms.

At the same time, many owners of family firms treat employees as part of the extended family – often going above and beyond to help employees deal with unforeseen circumstances or pull through difficult periods in their lives. While the motivations behind the behaviour of family firms may appear focused on the family, many employees are considered part of that family and become intertwined in this familial process of nurturing and development.

The relatively small size of many GCC family firms also allows for a more personal exchanges between owners and employees. While they have grown in size over the past several decades, many are still smaller than non-family run counterparts.

The smaller size of family-owned private companies enables active members to get to know their employees on a personal level. The strong, genuine relationships forged between owners and their staff can have an enormous effect on employee engagement, productivity, and retention in the workplace.

The average business school student may not learn about GCC family firms in their standard textbooks, but these companies make for an intriguing case study. They allow employees to contribute to strategic country goals, build the family reputation and foster close relationships with owners. In return, employees are more likely to be engaged, productive and loyal members of the team.

To maximise the full potential of employees, family firms must use positive emotions and continue to grow in the right direction. This may require some outside help, but the benefits are well worth it.

Rasheeda Haddish is an Oman-based senior research consultant at Oxford Strategic Consulting, which specialises in building human capital across the GCC and Europe