Firm’s problem is all relative

Dear Joan:
I would like your advice on a personnel problem that I have in the office. I am in business with my brother. We own an accounting firm as a partnership. I handle most of the hiring and personnel matters. Two other CPA's are working for us. We also have 6 other employees. They have various duties, ranging from bookkeeping to secretarial. One of those employees is my brother's wife, Susan. Here is where the problem lies.

Three years ago, Susan worked for us as a secretary. She and I did not agree on the way to run our business. She also did not perform her job well, making many mistakes. Consequently, I fired her- causing much family discord.

A year and a half ago, I allowed her to come back to work for us. Since that time the situation has deteriorated. Our customers are tuned off by her patronizing and overbearing attitude. Susan will not allow any of the other employees to answer the phone or hand out tax returns, of which they are more than capable. She is very hard working but very stubborn and not very productive with all of her overtime. Additionally, there are still some minor job incapabilities, mostly stemming from some lack of common sense. To top it off- the employees in the office and I have a personality conflict with her.

If I say anything to her she gets very defensive. She then ignores me, complains to my brother or retaliates by being insolent to me at he office. I do not want to cause more family problems! Can you think of a solution to my problem?

Answer:
Ugh! So sticky and oh, so common in family run businesses. It's no wonder many firms have a rule against hiring family members. In fact, you would do your company a favor to adopt this policy.

I have a hunch your brother wants a way out of this as much as you do. He probably feels trapped in the middle when she complains to him about you and, in order to keep peace, is trying to walk a very fine line. His good business judgment has been clouded is this situation and he probably knows it.

Unfortunately, your brother has let his wife drive a wedge between the two of you and has allowed her to gain far too much unearned influence in his business dealings. He has lost sight of the fact that you are his business partner and she is his life partner (who happens to be an employee). She must be managed like any other employee. The only family run firms who have succeeded in employing family members have lived by this rule.

Susan is a costly problem. The trick will be to insist that she improve her performance (or fire her) while helping your brother to understand it and support it. Since your brother is probably a CPA, I suggest that you appeal to his logical side and spell out the problem in dollars.

One approach is to document the effect she has had on customers. There can be no denying that ill will among your customers is the kiss of death in your business. Be very specific about any lost business and customer comments. Next, point out that refusing to allow others to answer the phone is adding to this problem. Document how productivity and teamwork has been damaged by her behaviors. Point out that her overtime may be a result of doing other people's jobs so that she must stay late to do what she should have done during the day.

In the end, you and your brother must come to an understanding on this matter. When your information is complete, sit down with him and spell out the problem in an unemotional way, using your data. When he brings up how she'll react and how it will affect family harmony, counter with, "I realize this won't be easy for you to deal with (or me either, for that matter) but for the good of our business I think we've got to make a decision about this." Point out that if this were any other employee, he would want something done.

Explore the alternative of having a discussion with her in which you establish performance standards that are reasonable and good for the business. Your brother must support you in order for this to work. He must also agree that failure to comply will result in her termination.

The fact that she insists on answering all phone calls and handing out customer's tax returns suggests that she desperately wants to be an important, visible part of the business-particularly with customers. Is there some other aspect of the business (marketing, for example) that would draw on this need while removing her from servicing customers?

Another alternative is for you to fire her and then stick to it. If you do fire her, consider instituting a company policy that prohibits you or any other employee from ever hiring family members. This could prevent you from having the same conversation about one of your family members a few years from now.

Good managers know that employee satisfaction is essential to healthy teamwork, initiative and productivity.  Joan Lloyd’s booklet, 86 Creative Ideas for Having More Fun & Less Stress at Work, is packed with ideas for building employee satisfaction and work/life balance while reducing stress in your workplace.  Guaranteed to give you fresh ideas any company can implement in categories such as: Fun with a Purpose, Building a Family Atmosphere & a Sense of Community, Having Fun at Work for the Sake of Fun, Rewarding Great Performance & Stress Busters!  Also available by return email, in PDF format!