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Managing relationships in the workplace

Updated February 14, 2017

DakotaBlueHRConsulting_Blog_Kent_Managing relationships at work-1.pngIt’s Valentine’s Day and romance is in the air. Over the years’ you have probably witnessed relationships form and blossom in the workplace, and you have more than likely witnessed the fall out when they have broken down. In my work as an HR Director for small and medium sized businesses, I have also seen the positive and negative effects of personal relationships at work. It’s not just romantic relationships I’m referring to here, but also friendships and family relationships. In this blog, the focus is on relationships in family businesses, but much of this can also be applied to other personal relationships within any type of business.

Family businesses

The Institute for Family Business (IFB), says that family businesses account for a quarter of the UK’s gross domestic product and employs nearly 12 million people. These businesses come in all sizes, sectors and regions across the UK. In their research, they also found that family and non-family staff report a greater sense of loyalty to the family business, and they are more committed to its success. But what do you do when relationships break down outside of work? For example, two brothers falling out working in the same company or the breakdown of a marriage between two people who run a business together.

At times, it can be difficult for people to separate their personal life from their working life. This is particularly the case when you work with the person that you are having a conflict with, even when this conflict is outside of the business. A dispute that occurs in one area of someone’s life can quickly spill in to other areas. Every family business is unique and complex in its own way. However, professional management is key to the success of any family business. Don’t confuse family decisions and business decisions, instead create healthy boundaries between the two.

What should you do when there is a breakdown in a relationship?

Firstly, you should acknowledge that these relationships are complex and that every individual will handle the same situation differently. This is why it is essential to implement  procedures that allow you to deal with any breakdown of relationships in the workplace.

  • Good grievance and disciplinary procedures should be put in place.
  • Think creatively, to keep your talent within your business. Can you move someone to a different department?
  • Educate yourself and your people on how to manage conflict in the workplace.
  • Invest in a mediator or consultant. This person can act as a negotiator and devise productive resolutions.

General policy on relationships at work

If you have a policy about personal relationships at work, it should clearly outline the behaviour you expect from all of your employees. For example, that the relationship should not affect their work and that there shouldn’t be any preferential treatment to anyone. You need to be especially careful where one employee is more senior than another.

You could also look to include guidance on recruitment, so that you are made aware if an employee’s partner, relative or close friend have applied for a position. State that they need to declare this at the earliest opportunity. Then you can take the time to consider any potential conflict of interest, or issues that may arise from this relationship, and what steps could be taken to address them.

It’s important to remember that there are risks but there are also benefits to having family and friends working together. You just need to ensure that you have put in place the procedures to deal with any issues that may arise. And in certain circumstances bringing in an impartial third party, who may be external, can help to resolve any conflict and put in place productive resolutions.

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