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Addressing employees as “family” has historically been used to foster an environment of warmth, support, and mutual respect. However, as more companies, particularly startups, adopt this language as a recruitment tactic, the concept has faced criticism. The disconnect between the idealized values of a family and the reality of corporate dynamics often leads to disillusionment.

The Pitfalls of Branding “Family” in Workplaces

Both Harvard Business Review and Forbes have highlighted the potential issues with branding workplaces as “family.” This framing creates an illusion of unconditional support while, in reality, fostering emotional exploitation. Employees may be expected to show unwavering loyalty or work excessive hours under the guise of familial commitment. Yet, unlike a real family, corporations prioritize performance and profit—not unconditional care. This discrepancy has been increasingly called out by employees on social media, effectively debunking the “family” myth.

The cultural contrast becomes even starker when viewed through the lens of family values in traditional contexts. A Chinese proverb, “肥水不流外人田” (“Fertilized water does not flow to others’ fields”), illustrates how family prioritizes its own members. This philosophy of protecting and benefiting one’s own often does not translate into the workplace, especially when economic pressures arise. During downturns, companies that brand themselves as “family” may still resort to layoffs, proving the inherent limitations of this metaphor.

A Mental Health Issue

Joshua Luna, among other critics, points out how the “family” label can drain employees’ mental health. It creates undue pressure by fostering environments where workers hesitate to voice grievances or set boundaries for fear of disrupting the “family” dynamic. Over time, this erodes trust, morale, and productivity, negatively impacting both employees and the company’s bottom line.

A Family-Based Workplace Experience

Earlier in my career, I encountered a company that prided itself on being a “family.” However, this term seemed to apply solely to the HR, Finance, and executive teams, who were long-time associates and formed a clique. Decisions often favored their comfort and convenience, leaving other employees excluded from meaningful input. Efforts to implement improvements were frequently stonewalled, demonstrating the hollow nature of the “family” rhetoric.

Family-Run Firms: A Different Story

Family-run firms, where leadership is composed of actual relatives, tend to avoid branding their companies as “family” for employees. The boundaries are clearer: family ties remain within the leadership, and employees are often regarded as external contributors.

For instance, chaebols in South Korea and other wealthy family businesses in Asia typically prioritize private, insular management. Success in such environments often depends on becoming a trusted right-hand to the family leaders, often at the expense of personal work-life balance.

Family Values Without the Label

Despite the backlash, there is merit in fostering the positive values associated with family: trust, support, gratitude, and shared growth. Companies can embrace these principles without explicitly branding themselves as “family.” To do so effectively, organizations can:

• Cultivate a Culture of Trust: Encourage open communication and mutual respect. This means employees can voice concerns and share ideas without fear of retaliation
• Share Success: Equitably distribute rewards and recognition, ensuring employees feel valued for their contributions to the company’s growth
• Provide Unconditional Support for Growth: Offer resources and mentorship to help employees develop professionally, even if their career trajectory leads them elsewhere
• Practice Radical Candor: Deliver constructive feedback with empathy, ensuring that critiques are framed as opportunities for growth rather than personal attacks

A Digress with Lessons from “Peaky Blinders”

The TV series Peaky Blinders offers a dramatic illustration of family-oriented leadership. Thomas Shelby, the protagonist, embodies a leader who balances harsh decisions with loyalty to his “family,” which includes both relatives and close associates. Despite occasional sacrifices and tough choices, Shelby’s commitment to rewarding loyalty and ensuring collective progress reinforces the importance of shared values in leadership.

“Family” in Workplace Reimagined

The backlash against “family” branding arises primarily from the mismatch between expectations and reality. Employees who give their all to a “family” workplace but receive no reciprocal support, especially during difficult times, feel betrayed. To address this, companies must redefine their cultural aspirations and focus on fostering environments where all individuals can thrive.

Imagine a workplace where employees are encouraged to explore roles that align with their strengths and interests, where mistakes are met with understanding, and where economic downturns don’t disproportionately punish the workforce. While this may sound idealistic, small steps toward such a vision can make a tangible difference in employee satisfaction and organizational success.

Have you worked for a company that branded itself as “family”? Was it a source of support or a cause for disappointment? Share your stories. Your insights can help us all rethink how workplaces should be structured to prioritize genuine connection and shared growth.