Retention of non-family member employees can be quite the challenge.   This is because non-family member employees believe they will not reach the upper echelons of management because they have the wrong last name.  This belief is often true and causes top non-family talent to leave.  This loss is costly for a company because it leads to brain drain and valuable training walks out the door when the employee leaves.  It may also impede production if the departing person has no ready replacement.   

Additionally, in the midst of the #MeToo movement, family businesses have unique considerations during the internal investigation process. Assume the company has to investigate an allegation of employee misconduct, if the alleged harasser and the investigator are family members, this is a problem.  A judge, jury, or government agency is unlikely to believe the investigation was fair and unbiased if everyone involved is related.  Therefore, in the context of family businesses, who the investigator is not may be more important than who it is.  Advanced planning to address this issue is important so you are ready to effectively face such disruptive allegations.