Selecting and retaining professional managers for family-owned businesses in South Africa

Abstract

Family businesses constitute the world‟s oldest and most dominant form of business entities. In South Africa, family businesses represent more than 84 percent of the overall businesses and contribute to economic growth and workplace employment. The importance of selecting and retaining good managers is widely recognised as a key for any organisation to sustain itself and grow. All companies compete for such talent irrespective of business ownership. Family business literature has dealt enormously with family issues relating to family members. However, the role of non family management in family business has tended to be overlooked. Since limited research in this regard has been undertaken, this study aims to explore the attributes and mechanisms used by family businesses in South Africa in selecting and retaining non family managers, respectively. The qualitative research paradigm using the case study method was used in this study. Five family-owned businesses were purposively selected to gather the thoughts and experience from family business leaders and from non family managers. The researcher utilised a semi-structured interview schedule to construct a rich database in order to provide an understanding of the selection attributes and retention mechanisms of non family management. The findings of the research suggest that non family managers are often hired during business expansion and that the common selection attributes sought after of non family managers are passion, integrity, respect, shared family vision and values and industry experience. The findings also suggest that the key mechanisms used in retaining non family managers are competitive salary, positive work environment, management support, career advancement, autonomy and job security. By considering these findings, the research should assist family businesses to select and retain non family managers effectively