Family Business Insights: Issue # 8 – The Role of Women in Family Businesses

In this edition, we explore the challenges women face in family businesses and provide practical steps for women navigating these dynamics. We also cover workplace policies that can support women, and how legislative shifts have supported women in family businesses.

Having Difficult Conversations

Last week, I shared some thoughts on the many roles women play in family businesses and the unique challenges they often encounter. The response was truly enlightening, highlighting the difficult nature of these topics.

It's evident that many women still feel hesitant to speak openly about the obstacles they face in family businesses. Whether it's due to cultural norms, fear of disrupting family dynamics, or simply the belief that their struggles should be silently borne, this reluctance is entirely understandable.

In over 20 years of practice, I've witnessed firsthand some troubling behaviour – from unequal treatment of male and female heirs to the exclusion of women from critical business decisions.

These are sometimes a consequence of deeply ingrained cultural norms around primogeniture and biases based on factors like marriage and children. They can often result in women being overlooked as natural leaders and heirs. Consequently, women may find themselves disinherited from family wealth or burdened with emotional responsibilities while their male counterparts assert their entitlement.

To address these dynamics effectively, if you are a woman thinking about your options within a family business, consider the following steps:

1. Assert your ambitions and aspirations within the family business. Open and honest communication is key to ensuring your voice is heard and your contributions are recognised.
2. Address concerns about marriage, children, and inheritance early on. By initiating candid conversations with family members, you can dispel misunderstandings and work towards equitable solutions.
3. When navigating complex family dynamics and legal matters, don't hesitate to seek professional advice and guidance.
4. Surround yourself with a supportive network of mentors, advisors, and allies who can offer valuable insights and advocacy.

While there have been significant improvements over the years, thanks to legislative and social reforms, it's clear that women continue to be disproportionately impacted by the disinheritance of generational wealth.

By fostering open dialogue and advocating for change, I have no doubt a more inclusive and equitable environment for women in family businesses is achievable.

Workplace Policies for Women

Regardless of whether a business is a family business or not, women-focused policies can be vital tools for promoting gender equality, supporting women's advancement, and creating inclusive work environments. Here are some common examples of such policies:

1.???? Equal Pay Policies: Ensuring that women receive equal pay for equal work is crucial for closing the gender pay gap. Implementing policies and practices that promote pay transparency and regular pay audits can help address disparities in wages between men and women.

2.???? Paid Parental Leave: Offering paid parental leave to both mothers and fathers helps support work-life balance and encourages gender equality in caregiving responsibilities. Policies that provide adequate time off for childbirth, adoption, or family caregiving can help women remain in the workforce and advance their careers.

3.???? Flexible Work Arrangements: Flexible work arrangements, such as telecommuting, flexible hours, or compressed workweeks, enable employees to better manage their work and personal responsibilities. These policies are particularly beneficial for women who may need to balance work with caregiving duties or other commitments.

4.???? Childcare Support: Providing access to affordable and high-quality childcare services can help women remain in the workforce and pursue career opportunities. Employer-sponsored childcare programs, subsidies, or referrals to childcare resources are examples of policies that support working parents.

5.???? Career Development: Implementing career development and mentorship programmes specifically tailored for women can help address barriers to advancement and provide support for career growth. These may include leadership training, networking opportunities, and mentorship from senior leaders.

6.???? Anti-Discrimination and Harassment Policies: Creating and enforcing policies that prohibit discrimination and harassment based on gender or any other protected characteristic is essential for fostering a safe and inclusive workplace. Training employees on these policies and providing channels for reporting and addressing complaints are critical components of ensuring a respectful work environment.

7.???? Diverse Hiring and Promotion: Implementing policies that promote diversity and inclusion in recruitment, hiring, and promotion processes can help ensure that women have equal opportunities for employment and advancement within the organisation. This may involve setting diversity goals, implementing blind recruitment practices, and providing unconscious bias training to hiring managers.

8.???? Health and Wellness Programs: Supporting women's health and wellness needs through workplace policies can contribute to overall well-being and productivity. This may include providing access to healthcare resources, reproductive health services, mental health support, and wellness initiatives tailored to women's specific needs.

These policies not only benefit women but also contribute to greater diversity, employee satisfaction, and business success.

Redefining Gender Dynamics

Despite the issues identified above, as discussed in this KPMG piece, societal progress, value shifts, and a focus on inclusivity have meant that family businesses are experiencing a paradigm shift globally, redefining the roles of women and the principles of succession planning.

Legislative reforms in many jurisdictions have adopted more equitable inheritance laws, granting equal property rights and challenging the bias towards male successors. These legal changes encourage families to embrace merit-based succession, where leadership positions are earned based on competence rather than birth order. (You can see a discussion about this in the latest issue of my firm's magazine - Exploring estate practices across jurisdictions).

Beyond legislative reforms, cultural shifts are also driving change within family businesses, the increasing participation of women in the workforce and those pursuing higher education has reshaped the types of choices available to women.

In addition, younger generations bring more progressive attitudes towards gender equality and diversity, challenging traditional practices and advocating for inclusive leadership structures.

Furthermore, corporate governance measures are increasingly promoting diversity and inclusion within family businesses. From appointing women to senior leadership positions to establishing gender-balanced boards, these can leverage a broader range of perspectives and experiences.

Overall legislative, social and generational shifts are helping redefine the gender balance in family-owned businesses.

My goal is to provide practical advice and solutions to help your family enterprise thrive. If you have questions on any of the topics discussed in this newsletter, please feel free to contact me.