Article
Motivating and retaining non-family employees in the absence of fair policies and procedures: A family firm perspective
Journal of Small Business & Entrepreneurship
(2022)
Abstract
We propose a theoretically-driven conceptual model describing relationships that impact the formation of nonfamily employees’ distributive justice judgements within family-run small and medium sized enterprises (family-run SMEs). This model is important because family-run SMEs usually struggle to retain quality nonfamily employees and negative distributive justice judgements have been shown to affect voluntary turnover. Of particular interest, a new construct termed market-driven learning opportunities (MLOs) is argued to offset the detrimental impact compensation inequity judgments have on nonfamily employees’ distributive justice assessments. This mitigating effect occurs because MLOs have the potential to increase nonfamily employees’ skills that are valuable to the firm and in the marketplace. Thus, a paradox exists where providing MLOs encourages nonfamily employees to stay to take advantage of these opportunities, while simultaneously encouraging them to leave to reap the rewards from possessing these skills.
Keywords
- Family-controlled firms,
- nonfamily employees,
- retention,
- motivation
Disciplines
Publication Date
February 6, 2022
DOI
10.1080/08276331.2021.1995814
Citation Information
Jeffrey J. Haynie, Ana M Franco-Watkins and Kirk Ring. "Motivating and retaining non-family employees in the absence of fair policies and procedures: A family firm perspective" Journal of Small Business & Entrepreneurship (2022) Available at: http://works.bepress.com/jeff-haynie/16/