https://www.youtube.com/watch?v=q_KyqwCs5ig&t=2s LIKE THE VIDEO!! In this document is presented which are the main problems that a young talent may face working for a family firm. Knowing these issues we propose different solutions thanks to a survey submitted by undergraduates and graduates students. Here is the link to the video, please WATCH and leave a like!!

1. How to attract and retain young talents
in family firms
Luca Bianchin
Manon Boucheaud
Alessandro Gagno
Elisa Rati
Elisabetta Tessari
FAMILY BUSINESS 2016/2017
Prof. Gubitta P. and Tognazzo A.
University of Padua

2. 2
The drivers of successful
family businesses
• Quality and effectiveness of nonfamily managers
• High quality of products and services
• Formalized recruitment practices for both family and nonfamily
members
• Professionalization of the top management applying the “principle
of merit”

3. 3
Professionalization of family firms
It does not mean to
hire nonfamily
employees full-time
with the delegation of
managerial authority
It is a holistic change
It is “the principle of
merit”, meaning that
people are placed in
positions and
rewarded depending
on their merit

4. 4
Practices and benefits of professionalization
• Performance-based salary
• Training and development
• Employees empowerment
1. Break the glass ceiling for female
2. Establish rigorous discipline for non-performing
kin
3. Build higher commitment from nonfamily
employees
4. Better terms with banks
5. Obtain capital in the public equity market
6. New opportunities for business alliances

5. 5
• How to retain external nonfamily
managers
• How nonfamily executives deal with family
members’ leadership positions
• How career plan is established for
nonfamily managers
Difficulties in the professionalisation process

6. 6

7. 7
1. Why young talents may or may not work in a family
firm
2. Their personal perception of working in a family
business
3. Which challenges of family firms affect their
decision to work or not in that specific
environment
How to find a
solution?
Analysing:

8. 8
• We examined the perceptions economics students have with
regard to family-owned businesses
• The sample is composed of 170 students from both bachelor and
master programs
• The survey is based on the assumption that attracting and
retaining talents is a critical issue for family firms
• Objectives:
 understand which are the factors that inhibit students from
working in family firms
 compare students’ perception with the real problems that they
reported after a work experience in a family firm
The survey

9. 9
How much each of these elements will influence
your decision of working in a family-owned
business?
1. Difficulties to have career advances for non-family members
2. Different background with respect to the “Old Guard”
3. Impossibility to acquire a knowledge specialization
4. Lack of a clear career planning
5. Difference between company’s values and personal values
6. Lack of an internal talent management and performance
evaluation system
7. Difficulties in collaborative exchanges of information

10. 10
637
611 602
574 564
502 490
Lack of an internal
talent management
and performance
evaluation system
Difficulties in
collaborative
exchanges of
information among
employees and in
communication
flows
Difficulties for non-
family members to
have career
advances
Lack of a clear
career planning
Different
background in
comparison with the
“Old Guard”who has
not the needed
competencies
Difference between
company’s values
and personal values
Impossibility to
acquire a
“knowledge
specialization” due
to a high job
rotation
Results
Before having a work experience in a family firm

11. 11
Results
Before having a work experience in a family firm
1st perceived
problem
2nd perceived
problem
3rd perceived
problem
Lack of an internal talent
management and performance
evaluation system
Difficulties in collaborative exchanges
of information
Difficulties to have career advances
for non-family members

12. 12
1. Difficulties in collaborative exchanges of information among employees and in
communication flows (25%)
2. Lack of an internal talent management and performance evaluation system (21%)
3. Different background in comparison to the “Old Guard” who has not the needed
competencies (21%)
Results
After having a work experience in a family firm

13. 13
• The perceived problems differ from the observed ones
with reference to the “different background in comparison to
“the Old Guard” who has not the needed competencies”
• This problem is not recognised as important until you enter
in a family firm
• The different academic background and competencies of
young generations with respect to the Old Guard lead to a
“generational crash” not easy to solve
Discussing some results

14. 14
Aspirations of young talents
Elements of a successful career:
1. Financial security
2. Financial achievement
3. Learning and development
4. Work-life balance
5. Positive relationships
6. Positive impact
7. Entrepreneurship

15. Additional data from the survey
15
Financial security (22%)
Being able to provide the basic
needs for living
Work-Life balance (24%)
Balance the time and energy
dedicated to work and non-working
activities
Learning and development (15%)
Continue learning through your
work, both informally and/or
formally
22%
24%
15%
10%
10%
13%
6%Financial security
Work-life balance
Learning and
development
Positive relationships
Positive impact
Financial
achievement
Entrepreneurship

16. Statistical correlations
16
Financial security
Negatively correlated with the difference
perceived by students between the
company’s value and their own values (p-
value: 0,045 and r-Pearson: 0,154)
Financial achievement
Negatively correlated with the lack of a
clear career planning inside the family firm
(p-value: 0,015 and r-Pearson: 0,186)

17. 17
Men
This variable is statistically correlated
with financial security and
entrepreneurship
Women
This variable is statistically correlated with work-
life balance, learning and development, and
positive impact
Statistical correlations (cont’d)

18. 18
Is the problems perception correlated with the academic year of interviewed
students? YES
Master students perceive in a very strong way the difficulties for non-family members to
have career advances, while undergraduate students consider this problem as less
relevant for them
Statistical correlations (cont’d)

19. 19
How to solve the problems?

20. 20
- Equal talent management processes for family
and non-family members
•- Meritocracy in place
- Adoption of objective measures of performance
•- Incentives
- Increase reliability and transparency
• - Creation of an internal constitution
1

21. 21
- Creation of a flexible and open organization
• - Teamwork
• - Trust and loyalty are fundamental
- Hiring of a team of HR managers
• - Communication flows and transparency are
critical
2

22. 22
- Introduction of family members only after an
external experience
• - Importance of rules in the employment policy
- Attractive compensation packages
• - Introduction of specific managerial and
governance practices
3

23. Video

25. 25
Thank you for your
attention