Hiring family members into your business or family office can be a minefield — and if not handled with care, it can cost you more than money.
Joshua Gentine, a third-generation heir to Sargento Foods and founder of Bench Consulting, says many wealthy families are too casual when putting the next generation on payroll. He helps family offices and businesses design systems to avoid resentment, underperformance, and internal friction — all of which can erode the bottom line.
Gentine, whose own family business generates over $1.7 billion in annual sales, had to meet strict criteria before joining the board: an MBA and at least three years of outside work experience. But when he began advising other families, he was surprised by how rare such guardrails were.
“Most families haven’t even had these conversations,” Gentine told CNBC. “Without clarity, you’re setting up both the family and the staff for failure.”
Why Governance Matters
Gentine’s core advice: treat your family office like any serious business. That means:
- Setting clear job descriptions and performance metrics for family members.
- Applying the same rules to all staff, regardless of bloodline.
- Preparing for the worst with performance improvement plans and independent review panels.
Without this, outside professionals hired to run the office often feel hamstrung. “If they’re not empowered to make decisions or see family members playing by a different set of rules, they leave. And that’s part of why family office turnover is so high,” says Gentine.
A Framework for Accountability
When family members underperform, managers are put in a difficult spot: they’re expected to act professionally while navigating personal dynamics. Gentine recommends building in accountability from the start, with independent advisors or committees empowered to evaluate promotions — or terminations.
This helps depersonalise tough calls. “Instead of a parent saying, ‘You’re fired,’ they can say, ‘The board recommends we move in another direction,’” he explains.
Confidence Comes from Structure
Many next-gen family members enter the business carrying emotional baggage. Some feel insecure, others overcompensate with bravado. Both affect the culture.
“When someone doesn’t feel they earned their role, it shows,” Gentine says. “Either they second-guess themselves, or they try too hard to prove themselves. Neither is good for decision-making.”
Creating a culture where performance is measured, expectations are clear, and roles are earned — not given — benefits everyone. After all, no respected investment firm operates without KPIs, formal reviews, or improvement plans. Family offices shouldn’t either.
