Anyone who's tracked the fate of New York retailer Joseph Brooks knows the kind of misfortune mixing family and business can bring. After trying to push his son up the ranks of AnnTaylor Stores Corp. too quickly, Mr. Brooks, chief executive officer of the women's clothing chain, watched his son's job -- and his own -- vanish.
The crucial event came last October, when 38-year-old Thomas Brooks was caught trying to sneak several watches into the country without paying duties on them. He resigned his position as president and chief operating officer of AnnTaylor Stores. Then, company directors decided to hire someone to fill those positions, as well as that of the elder Mr. Brooks, forcing Joseph, 65, into retirement.
Combining your work and your progeny doesn't always produce such explosive results. But those who link jobs and family risk harming their businesses in other ways.
"When you've already got complicated business matters, and you introduce into that all of these family issues, you're compounding the problems that can occur," said David Bork, a family business consultant in Aspen, Colo., and author of "Family Business, Risky Business" (American Management Association, New York, N.Y., 1987).
Yet by adopting professional, practical attitudes toward their children, business owners can avoid trouble.
Before hiring your child for a job, or promoting him to a new position, make sure he's qualified for it, Mr. Bork advises. It's easy for proud parents to assume that their children can do no wrong. But if they lack merit, putting them in positions where they can't excel will cause problems for them -- and for you.
"You have to develop an attitude of 'No Parking' -- that you won't park family members in your business just because you own it," said Mr. Bork. "That's a problem waiting to happen. Because if they screw up, they're going to suffer from it, and you're going to have a mess to clean up."
Mr. Bork recommends requiring your child to undergo the regular interview and application process, a move that should reduce resentment from other employees. "If employees see that there's some way of screening, so they have responsible people in the jobs, they'll feel better" about your action.
Another useful move: insisting that your child gain other work experience before entering your business.
At Advanced Packaging Inc., a Baltimore-based maker of reusable shipping containers, president Simon Kalderon has established a clear rule: No relative will be hired until he or she has been employed elsewhere first.
