Forbes Marshall is a 90-year-old, Pune-based company that is in the business of steam engineering and control instrumentation solutions. There is nothing very glamorous about it. But it keeps on finding its way into the Best Companies to Work for lists. The reason: the workforce sees itself as one large family.

In many places, children of employees are not entertained for job vacancies. People view it as a form of nepotism. And things could get complicated if two generations are working on the shopfloor together.

In recent times, however, there has been rethinking on this issue. Many HR professionals have started believing that if you have two people from the same family working in the organisation, both will perform better. The reasoning is that if one of the duo goofs off, it could reflect in the rating of the other.

Forbes Marshall has always been a believer. Some 14 per cent of its workforce is made up of second generation employees. There are a few from the third generation too. The company prides itself on being a happy family. In fact, having fun is considered key to a productive workplace.

Family-run businesses have always encouraged the children of their employees to join up. At the top — the family — son succeeds father and grandson succeeds son. The same principle is applied to workers too.

Besides, such businesses often sponsor the education of the children of their employees. This could even include financial support to study abroad. They see it as an investment and the bright young sparks are expected to pay back by joining the company.

In MNCs, this practice is definitely not encouraged. Two people with close ties can aid each other in fraud. It is not very likely to happen, but why take the chance. The other danger, of course, is that two of your prized assets may decide to leave the company at the same time.

From the employee point of view, there is another danger. If the external environment turns adverse for the company, both may be handed the pink slip. This does not matter so much if the two people have separate establishments. But it can be critical for a husband and wife; a two-paycheque family can be reduced to penury when the HR department starts wielding its unthinking hatchet.

“This does not happen in family-run businesses,” says Mumbai-based HR consultant D. Singh. “In a crisis, people tighten their belts. But no one is shown the door.”

Should one take this statement with a pinch of salt? Aren’t there units closing down all over the place? Yes, but a large part of that is caused by the greed of the trade unions. Lakhs of textile workers in Mumbai — out of work for more than two decades now — are testimony to this. The city’s textile mills could survive only if they moved out of high-cost Mumbai. But the workers saw it as an exploitative move by the owners and the unions did the rest. If you want to see where excessive greed can take you, look at the farmers of Singur where the Tatas were supposed to set up their Nano plant. They thought they could get the moon for their land; they are left with barren crops.

Given this environment, it may seem that money is the most important factor in any Best Company to Work for rating. It is not. Other things matter much more (see box). At the very top is that the company should be a success. You can’t take pride in a company that is losing money all the time or being taken to the cleaners by competition.

The jury is still out on the question of whether a family culture adds to employer brand. But if you ask the folks at Forbes Marshall, they have only one answer.

NOTHING LIKE SUCCESS

What people want in a good employer

• Market success
• Professional training and development
• Leaders who will support individual development
• Good reference for a future career

Source: Universum survey of undergraduates around the world