Nurturing an engaged next generation through onboarding

As any human resources professional will tell you, a key to having engaged employees is the onboarding process. This is particularly true when the employees are NextGen family members.

Multi-generational family business success requires the development of family members who have an active interest in the business, are connected and committed to one another and to the business, are involved in activities related to the family business and are willing to do what is right for the family and the business. As any human resources professional will tell you, a key to having engaged employees is the onboarding process. This is particularly true when the employees are NextGen family members.

For business families, onboarding is the process by which younger family members (as well newer family members, like in-laws) are introduced to and integrated into family governance. This process helps them learn about the values, culture, mission, vision and structure of the family and the business. The goal of onboarding is to provide family members with the necessary knowledge, attitudes and behaviors to become successful members of the business family. Some families may find it beneficial to have outside advisors assist in the onboarding process.

Developing Strong Family Onboarding Programs

A successful onboarding program has three components:

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Stage 1: Pre-boarding

To encourage engagement, NextGens need to know about the family and  the business and how they are connected. The pre-boarding phase encompasses all the activities that serve to introduce family members to the rest of the family, educate them on what the business does and facilitate the connection between the family and the business.

A variety of activities can help in this stage. Within the family, younger or newer members learn about the family and the business through experiences with their parents, with their family branch and in larger family settings. Experiences such as dinner table conversations, family celebrations and visits with extended family often provide the first connection to the family and its culture. Participation in family philanthropic activities also provides great opportunities for family members to learn more about their family values. On the business side, experiences such as visiting the business, using its products or services, meeting employees and their families, and participating in important celebrations help connect younger and newer family members to the business. One way to facilitate connection at this stage is to provide family members with products or swag from the business.

Generally, pre-boarding activities are done with very young NextGens (e.g., 5 to 14 years old). However, these activities can also be as a way of introducing new family members such as adoptees or in-laws, or of reintroducing family members to the extended family and to the business.

Although the pre-boarding stage can appear informal, business families are wise to develop more intentional and formal activities and even consider including these activities in family gatherings and meetings. The activities should match the family's values and norms. Examples of this include creating unique experiences for younger or newer family members at family meetings or at family business events. In a family meeting, space can be created for these family members to get to know the business through visits or guided learning experiences focusing on its history or values. Families could also create special roles during important business celebratios to involve younger or newer family members. For example, kids can have specific roles in the company's holiday celebrations, during the annual summer picnic or at  employee awards ceremonies. Older family members could have roles in marketing events to support the business. Philanthropic involvement can also benefit all family members. These sorts of activities begin to create a connection to the business as well as a connection among the family members involved.

Questions for families to consider as they develop a pre-boarding program include:

  1. What do younger and newer family members need to understand about the family and the business? What would we have liked to learn at that stage?
  2. Who would we like to participate in the pre-boarding? When should the family begin to connect with younger and newer family members? What makes the most sense for those being preboarded?
  3. What activities or information (such as a family history book or a tour of the business) can be used to help family members gain awareness of and excitement about the business and family?
  4. How should the group that is working on this project be organized?

Stage 2: General Business Family Onboarding

Achieving sustainable continuity requires the family to develop unity, alignment and commitment. They must have a high desire — and ability — to communicate with one another frequently and clearly, and to identify and resolve conflict effectively. They must also be resilient and adaptable when they face change, seeking solutions rather than targets of blame when times are difficult. To achieve this, they need to connect to one another, learn about the culture and, within each generation, build what unites them (including shared goals). They also should decide on a vision and formulate a plan for how to achieve it. The second stage of a successful onboarding process provides the space for families to do just that.

Building on the basic knowledge gained in the pre-boarding stage, the activities and experiences in this second stage are geared toward fostering in-depth understanding about the family and the business, developing greater connections between famiy members and the business, and teaching the behaviors that reflect the culture of the business family.

Through the experiences and activities in this stage, family members gain insights into how people are expected to interact within the business; whether the business is there to serve selfish family interests or unselfish interests like community, employees, customers and suppliers; and how open or secretive the business is. Family members can learn this from family and non-family employees who serve as coaches and mentors, and through deliberate rotation programs where they spend time with leaders in each major area of the business. This will help them to gain a better understanding of the family, its structure, its history and the values it holds dear. All of these activities help connect younger and newer family members to the extended family. General business family onboarding also provides an important space to align expectations among the various generations and to introduce family members to the different ways they can be involved in and connected to the business. In this stage, family members learn the norms around interacting with the business, the family and older generations. They also gain insight into how much time is required to understand the business, as well as what to expect from the business, such as dividends, pay, personal growth and job opportunities.  

Business family onboarding can be done in multiple ways. For example, some of the education can be conducted at annual or biannual family meetings. During these gatherings, the family comes together to learn more about each other, to meet new members and to connect on a social level. Planned “get to know each other” activities help promote the connection between family members. As part of these social gatherings, families can also dedicate a space to sharing family history through things like videos and pictures. Meetings can also include visits to the business and games like family history Jeopardy!, as well as family- and business-related scavenger hunts. These planned activities help family members to connect to one another and to learn about their history, the business and what the business means to the family.

Also at this stage, the family should have conversations about the different opportunities for family members within the business (e.g., working in the business, owning shares in the business, participating in family or business governance, or having a supporting role in the family). The goal here is to sensitize NextGens and newer family members to how the business can represent an emotional and tangible asset that provides professional opportunities in a variety of ways. These conversations can occur one-on-one or in small groups of family members who are at similar stages in life. However, families should plan to have these conversations more often than just once a year. Some families have committees that develop and assess plans for family and NextGen onboarding.

From our perspective, this stage of the onboarding process is one of the most important because it helps family members understand the shared goals of the family and outlines various ways that individuals can support the family and the business. However, to make this stage of the onboarding process successful, the next generation needs to be ready to have these conversations.

Questions for families to think about as they develop their general onboarding plan include:

  1. When are family members ready to begin the family onboarding process?
  2. What information about the family and the business should be taught at this stage?
  3. What are the different roles that family members can have within the family and the business? How can NextGens be introduced to them?
  4. Which members of the family and the business could help organize and deliver this information? Are there anyt educational and networking opportunities that we can recommend?
  5. How is the family going to evaluate what is and isn't working, and make changes when necessary?

Stage 3: Role-Dependent Onboarding

The last stage of the onboarding process should focus on acclimating individuals to their specific roles within the business family. There are at least five types of roles that family members can have: ownership, employment in the business, business governance, family governance and family support. Family members need role-specific orientation in order to be successful in any of these roles.

Ownership: Becoming a responsible owner is critical for business family continuity. In their research on developing responsible owners, Joseph H. Astrachan and Torsten M. Pieper have argued that responsible owners should have the ability to ask critical questions and hold leadership and management in the firm accountable for their decisions and actions. To do this successfully, family members must have a strong financial education base as well as a strong sense of self-esteem. They must also understand the shared values and family culture and receive specific training in how to be an owner. This can be accomplished by combining educational experiences with mentoring and hands-on experiences that provide them feedback and outline how to improve in their roles. Things like mock boards, conversations with senior leaders and industry meetings are but a few of the activities that can be helpful.

Employment in the business: Employment can be very complex as well as personally risky, since it encourages scrutiny from family and non-family members alike. On the family side, employment is tied to a wide set of expectations for the individual. On the non-family side, it requires NextGens to develop credibility and demonstrate the capability to do the job. To ensure that NextGens can successfully navigate employment and contribute to business success, an onboarding process is critical. Business families should coordinate with the human resources office of the family business to create a program for NextGens to become active members of the family business. The plan for family employees should go beyond the development plan for non-family employees. The family employment plan might include discussions with other family employees about the stresses of being a family member in the business as well as tactics for navigating that dual role. The plan should clarify expectations for how family members should act at work and in public and how they should perform in their roles. The plan should also explain how family members' performance reviews and promotions might be handled differently from non-family employees in order to avoid bias.

Business governance: In addition to the knowledge needed to be a good owner, business governance requires a deeper understanding of finance, strategy, marketing, sales and a host of other business and economic concepts. We recommend that family members participate in one or more courses or events on family business boards of directors before considering a formal role in business governance. Reading redacted board books, discussing them with board members, reading minutes of earlier meetings and actually sitting in on all or parts of board meetings can all be part of development for board service.

Family governance: Family governance can be one of the first ways that NextGens engage with the business family. They can serve in in formal family governance roles or or do something as simple as helping to plan and execute a family retreat. However, in many instances, NextGens have not had any experience in governance. Lack of experience can result in lack of engagement with the business family. Onboarding could include education on the family's governance structures and opportunities to sit in on family council, committee and task force meetings. This training might also involve mentorship or pairing programs that connect younger family members with more experienced family members.

Family support: Another entry-level role in a business family involves supporting the family or the business. This can occur in a variety of ways, such as representing the family at a social event or assisting in a project for the business or the family council. While these roles are often informal, it would be helpful for the family to list some ways that family members could contribute and provide a way for them to learn how they can engage in these roles.

The idea in this final stage is to create ways to support NextGens and to provide a variety of ways for them to participate. Questions for families to consider as they develop role-specific onboarding processes include:

  1. How has the family supported you? The answers can help frame possible beneficial roles.
  2. What support roles do other families have that we might adopt for our own?
  3. What preparation have we provided to ensure family members succeed in these roles? Is this preparation internal or external?
  4. How can the business family support the NextGens as they enter a new role in the business family?

Intentionality: The Key to Succcess

Given that families continually grow, the onboarding process must be dynamic and ongoing, with family members involved at different stages. Onboarding is an important way to help NextGens and new family members learn about the business family, build cohesion and develop connections with other family members and the family business. Families that are intentional about onboarding are more likely to find success in this process.

About the Author(s)

Joseph H Astrachan

Joseph H. Astrachan, Ph.D., is a founder of Generation6 and emeritus professor of management at Kennesaw State University He has academic affiliations with Cornell University, Witten/Herdecke University and Jönköping International Business School. He currently serves on the boards of 10 family businesses.


Isabel C. Botero

Isabel C. Botero, Ph.D., is the George E. and Mary Lee Fischer Chair in Family Entrepreneurship in the department of management and entrepreneurship at the University of Louisville. She is an adviser at Generation6, a Fulbright scholar and an affiliated researcher at the Centre for Family Entrepreneurship and Ownership - Jönköping University Sweden.


Carol B Wittmeyer

Carol B. Wittmeyer, Ed.D., is the director of family business and a visiting associate professor at St. John Fisher University. She is a Smith Family Business Fellow at Cornell University and a professor emerita at St. Bonaventure University.


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