Employee motivation: Family businesses inspire more loyalty and higher morale, says study

Date: 20/07/2011

Workers in family-owned or managed businesses have higher employee motivation than those working for private or public sector companies, it has been claimed.

Research from the University of Birmingham, on behalf of the Unquoted Companies Group, has shown that loyalty and inclusivity ratings are higher for workers at family-run businesses.

These companies also boast flexibility and morale that other organisations struggle to match, the study said.

However, workers in the public sector are most likely to stay in their jobs for the longest, with an average of almost nine years.

And when it comes to working long hours, family businesses also come out on top, as workers work six hours a week more than public or private sectors sector workers (38.4 hours compared to 32.4 and 32.9 respectively).

Stanley Siebert, professor of labour economics at Birmingham University, said: "Family businesses tend to treat employees much more transparently and consistently than other employers.

"Although job tenure is shorter, they feel far more involved in the success of the firm, far less alienated from decision making, and far more valued by their company."

Recently, Phil McCabe, a spokesman for the Forum of Private Business, advised businesses looking to boost employee motivation not to let financial problems bring down staff morale.

Posted by Elizabeth Mewes

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