The 2023 Family Business Survey conducted by Grant Thornton, highlighted 48 per cent of respondents believe gender diversity will have either a positive or extremely positive impact on their business.
According to the results, the top five positive impacts of increasing gender diversity on family businesses are:
- Staff performance, morale and culture (27 per cent)
- Staff acquisition and retention (16 per cent)
- Improved decision making (13 per cent)
- Market reputation/competitor advantage (11 per cent)
- Growth revenue and expansion (8 per cent)
Despite this, the data showed that only 18.9 per cent of respondents are aware of it as a business opportunity, and 40 per cent have no business actions or plans in place relating to gender diversity.
Why diversity is important?
Research into diversity shows that not only is it necessary, but a team made up of members with mixed and varied backgrounds, skills and expertise, would generally outperform against a homogeneous one and produce better decision-making outcomes.
While we understand greater diversity will bring huge benefits to your family business, we also need to acknowledge creating a diverse team can be challenging. It can be tough sourcing the right talent from both within and outside of the family, and hard to create an integrated team of complimentary personalities to mitigate potential conflict.
In a blended family business, which involves family members from different relationships or marriages working together, there may be unique opportunities to incorporate gender, or other forms of diversity, to ensure success of the business.
As blended families can result in people from different backgrounds and experiences working together, a diversity of perspective within the family business is naturally created, which can be useful in decision making and problem solving. Where challenges arise, an emphasis on governance can help to promote diversity for a family business.
Good governance
Good governance enables the family business to run more professionally and provide a structure to bring in all the talents of your family. There is an ability for recognition based on performance and reward based on merit – all done irrespective of gender. Ultimately, this can lead to more opportunities for family members to serve in leadership roles.
An option to rotate members on-and-off key governance positions can also be explored, in order to give a greater number of family members to serve, thereby establishing greater diversity.
Governance can also shine focus on the next generation and requirements for them to join the business, as well as the necessary support to be provided by the older generation(s).
Governance in family business provides a strong foundation for:
- inclusive decision making, by involving all relevant family members, irrespective of role, age or gender;
- challenging stereotypes and encouraging a merit-based approach and thereby mitigating biases;
- succession planning with gender and diversity in mind;
- addressing and resolving conflict promptly and fairly; and
- creating a supportive culture and healthy working environment, promoting mutual respect, and understanding.
Therefore, embracing and committing to gender and other diversity in a blended family business involves deliberate and thoughtful planning to create an environment where all family members feel valued and have equal opportunities to contribute to the success of the business.
Sharing the family secret recipe
As we think of parents passing down their secret family recipes, so to can they pass on ‘recipes’ to how they run the family business. It is in this sharing of knowledge – with both sons and daughters and encouraging the next generation to engage with the business – that will teach them how to be good stewards.
The older generation has a responsibility to mentor and create opportunities for the younger generation – regardless of their gender. The next generation should take the opportunity to conscientiously watch, listen and learn. Through this equal encouragement, family members can be recognised for their individual skills and abilities – looking beyond gender.
We’re here to help
Our team can assist your family with building a governance structure that suits your family and business, with diversity at front of mind. Where you already have governance structures in place, we can provide an independent review, to ensure it is meeting your current and future goals.
As independent facilitators, we work closely with you to identify key issues and develop a framework which considers the objectives of your whole family.
Learn more about how our Family business consulting services can help you
