The Recruitment Process within the Family Business Context : A Multiple Case Study

Abstract: The presented master thesis is an exploratory, multiple case study that analyzes the recruitment practices and their respective processes in five family firms located in the Southern part of Germany. A strong HR function inside a company is necessary to stay competitive in the market and survive in the long-run. Hereby recruitment is an important field of research because firms depend on their employees who are ultimately the vital factor in running a successful business. Recruitment is an ongoing process in a dynamic business world and a very crucial responsibility of HRM inside the organization. Especially due to the strong family involvement, commitment to the localities, overlap between financial and nonfinancial goals, and a deeply ingrained business culture based on the family founders’ values, establishing an effective recruitment process is even more important in family than in nonfamily firms. Thus, this study aims at exploring and researching individual characteristics associated with the recruitment practices and tries to display the main influencing factors in the recruitment process of the studied firms. Through analyzing secondary and primary data collected with the help of semi-structured interviews, the authors were able to gather insightful data from CEOs and HR representatives in order to draw comprehensive conclusions regarding how suitable employees are recruited in family firms. The results show that the person-organization (P-O) fit is a main component which family firms try to assess in their applicants. Personality and the fit to the respective business culture, apart from the actual skill-set, is an additional requirement for being recruited. Through various recruitment channels, strategies, and assessments the family firms try to use the construct of familiness to their advantage and benefit.