Family Business People Capital
19th November 2013 Paul Andrews
This report from the IFB Research Foundation with UCG investigates people capital in the family business context.
An earlier IFB Research Foundation report on Family Business Stewardship identified four distinct but interlinked resources underpinning family business success: family, people, financial and social capital. Of the four “capitals” people capital undeniably represents a strategic cornerstone for organisational success and sustainability. The Stewardship report defined people capital as: “The strength of knowledge, skills, behaviours, energy, loyalty and commitment which exist within the nonâ€‘family members of a family business.”
Successfully developing the organisation’s human resources can create a vital source of competitive advantage. In today’s environment, knowledge is a strategic resource helping to underpin innovation.
Also, notwithstanding the economic recession and high unemployment levels, companies regularly report skill shortages. In this context the war for talent continues to rage. Family businesses must of course compete for talent in order to grow their enterprises.
To succeed in attracting and retaining the best people, family firms need to establish a strong employer brand and embed highâ€‘performance HR policies and practices within their organisations. Against this background the IFB Research Foundation with UCG decided to commission research to investigate people capital in the family business context. This report from Cass Business School draws its evidence from the government’s highly respected Workplace Employment Relations Survey.
The findings here build on an earlier report that the Unquoted Companies Group commissioned in 2011.
The aim of this report is to promote more debate on how family businesses can further enhance their people practices, giving them greater competitive strength.
Download your copy of the report below.