Hoa Phat does not want to form a family conglomerate
In an interview with the press a few years ago, when asked about the issue of hiring family members to work at the company, Mr. Tran Dinh Long – Chairman of Hoa Phat Corporation’s Board of Directors, affirmed that family ties are not the criteria for recruitment. In fact, even the wives of the leaders are not allowed to work. The original quote from Mr. Long’s response is as follows:
“It is rumored that at Hoa Phat, the relatives of the leaders are not allowed to work at the company. How true is this?”
Not true! The accurate statement is that family ties are not used as a criteria for recruitment. There are many family members in this company. We do not operate in such an extreme way. There are many family members in the company, but they all hold normal positions.
Mr. Tran Dinh Long – Chairman of Hoa Phat Corporation’s Board of Directors
Previously, when I was in business for a while, the company was also big enough. A relative advised me that, “You have to put your relatives in important positions to manage the money for you, then you can rest assured. Because if you grow so big, if you are not careful, you will lose everything!”. At the time, I replied, “No need for that!”. We operate positions in the company based on competence and job requirements, not based on family ties.
This cannot be said to be good or bad. It is the policy of each company. But I think today we have succeeded in that, because we have not turned Hoa Phat into a family conglomerate.
So what about the wives of Hoa Phat’s bosses? Do they interfere in company matters, like your wife, is her name on the list of major shareholders?
Wives are absolutely not allowed to work here, especially the wives of company leaders. Even my wife is the same, absolutely no position or work at Hoa Phat.
But this does not mean that Hoa Phat does not value women. As a heavy industry company, but the ratio of women in Hoa Phat’s leadership is about 30%, and many women hold high-level leadership positions. I think I should be awarded for women’s progress (laughs). Just kidding, but I think the female officials here have many outstanding qualities such as diligence, carefulness, and they are also very good.
What is special about a family company?
Working at a family company where superiors and subordinates are family members is what makes many people afraid.
A family company is a business form in which one or more members of the same family have a significant influence on the decision-making and operations of the company. This type can be classified based on various criteria, including scale, family involvement, and power inheritance.
According to VietnamWorks, there are three common types of family companies:
Small family companies: These are small-scale companies, usually with one or two family members as owners or managers. Typical examples are shops, restaurants, and tailors…
Medium-sized family companies: These are medium-sized companies, usually with more than two family members involved in management or ownership. Typical examples are manufacturing, service, and trade companies.
Many employees view family companies as a “nightmare” to work in
Large family companies: These are large-scale companies, often involving multiple generations of the family in management or ownership. Examples include multinational conglomerates and corporations.
There are many successful family companies around the world, such as Walmart, Samsung, and Ford. These companies have been around for many generations and have maintained credibility and sustainable development in the market.
Family companies have their own unique characteristics and advantages compared to other business forms, including strong cohesion among family members, the tradition of values and business principles, flexibility in management, and the ability to withstand crises.
However, working at a family company also presents many difficulties and pressures for employees.
According to a study by the Family Business Institute, the employee turnover rate in family companies is 21%, higher than the 16% turnover rate in non-family companies. This indicates that employees in family companies are often dissatisfied and do not want to stay long-term.
There are several reasons and consequences that make employees feel “worried” when working at a family company:
– Lack of transparency: Family companies often lack transparency in decision-making, resource allocation, performance evaluation, and salary payment. Employees may feel abandoned, unfair, or not respected when they do not know the criteria and processes of the company.
– Favoritism: Family companies often tend to favor relatives in promotions, task assignments, or conflict resolution. Employees may feel discriminated against, deprived of opportunities, or pressured to comply with the wishes of family members.
– Conflict of interest: Family companies often face conflicts of interest among family members in company management and development. Employees may be drawn into conflicts or disputes unrelated to work, or be forced to follow the desires of family members.
– Psychological pressure: Family companies often trade the cohesiveness and responsibility of family members with high psychological pressure. Employees may feel stressed, anxious, or unbalanced between work and life when working with family members.
These reasons and consequences can pose risks and challenges for employees working at a family company:
– Limited advancement opportunities: Employees may be limited in advancement opportunities when important positions are usually reserved for family members. This can reduce motivation, learning ability, creativity, as well as diminish interest and passion for the job.
– Dependency: Employees may become dependent on the family company when they lack the skills, knowledge, or experience to work elsewhere. This can reduce their confidence, independence, and adaptability, as well as limit their professional development.
– Loss of value: Employees may feel devalued when their work is not recognized, evaluated, or rewarded. This can reduce job satisfaction, loyalty, and commitment of employees, as well as increase the turnover rate or job switching.
Working at a family company making 1.5 billion/year, I couldn’t last more than a few months
Sharing the experience of working in a family company, An An, 30 years old, used to work for a company listed in Shanghai (China). This company had a vice chairman who was the older brother of the chairman, the chairman’s sister-in-law was the director, and the chairman’s children held important positions. Therefore, according to An An, if you have the ability, you still have the opportunity to be promoted to a management level, but key positions are almost fixed, so it is very difficult to advance if you work for a long time in a family company. The relationship and trust are important conditions for this business model to operate smoothly, but An An herself finds it difficult to handle if there are conflicts within the boss’s family.
The Ngos, residents of Zhejiang Province (China), believe that when working at a family company, it is extremely important to apply both IQ and EQ every day. In particular, you need to be clever and cautious to not offend your colleagues, absolutely avoid gossiping about the boss and other colleagues, otherwise it will cause a lot of trouble. This person has been with the current company for 4 years, although there are times when she has to “look up and look down,” but overall the treatment is good, and the salary she receives is quite generous, the boss often organizes activities for both the family and the employees.
According to Ha Dong, 25 years old, the success or failure of a family-run business depends largely on the owner. He used to work for two such companies in Shenzhen (China), and the CEO of both companies was very capable, but one of them was “afraid” of the boss’s family, so some employees were extremely lazy and had an attitude of relying on others. Non-family employees felt unfair and quickly left the company.
On the other hand, his current boss is quite open-minded, so many talented people have stayed and worked for many years, and the work efficiency has improved significantly. The common feature of the two companies where Ha Dong used to work was the emergence of new regulations, as long as the boss considered them reasonable, they would be added to the rules, which made many people unable to catch up.
Keep working hard, because as long as you have the ability, you will be valued anywhere
Each environment has its own advantages and disadvantages, but many people advise that if anyone finds themselves in a situation like Ly Binh’s, they should not feel that they have to stay in an unsuitable environment just because of a high salary.
Below are some solutions and specific advice:
– Choose a family company that suits yourself: Before deciding to work at a family company, consider whether the company is suitable for you. You should learn about the company’s culture, values, goals, vision, and even its competitors. Make sure that you can integrate and meet their requirements.
– Establish a professional and transparent relationship with family members in the company: Evaluate the roles and power of family members, then establish relationships ranging from friendship to networking. Emphasize clear and frank communication, without sugarcoating.
– Respect and learn from the experience and knowledge: Continually learn from the experience and knowledge of family members, but do not hesitate to express your opinions when necessary.
– Seek and seize opportunities for learning and career development: Seek opportunities to participate in new projects, collaborate with other departments, and participate in training courses. Make sure you have goals and plans for your career.
– Take care of mental health and achieve work-life balance: Identify and resolve stressors; seek support from family and friends; engage in recreational activities to relax. Ensure that you maintain a balance between work and life, without being overly stressed or pressured.
