Although family members are often committed to the business, they sometimes lack the skills and fortitude necessary to maintain it across generations. In response, family firms are increasingly hiring non-family employees to help their businesses survive and grow. However, family firms face a challenge in this regard as they generally offer lower compensation, extend fewer opportunities for advancement or skill development, and have policies and cultures that treat non-family members differently than family members. For these reasons, family businesses frequently suffer from a human capital deficit. Therefore, a pressing question is how can family businesses attract quality non-family employees?
