By Asif Nazir, Head Group HR
Mahmood Group, Multan
Gaining acceptability as an HR professional in family-run businesses is one of the most persistent challenges in practice. These businesses operate on relationships, legacy, culture, and informal power structures, where HR is often viewed with suspicion by both directors and employees. One of the fundamental reasons for this disconnect is that HR professionals frequently fail to understand the business strategy and core processes in which they are operating. When HR does not understand how value is created, how decisions are made, and what keeps the owners concerned, it naturally retreats into silos and loses the ability to define meaningful and measurable KPIs. Knowledge in HR must therefore be connected—connected to business realities, people dynamics, and organizational goals. Success in such environments ultimately lies in justice and accountability, supported by clear goals and the discipline to stay on the chosen path without drifting. Family businesses have unique challenges that demand a different mindset from HR professionals. Culture plays a decisive role, and HR must understand whether policies are meant to open doors or close them. Directors view people, society, and business through deeply personal lenses shaped by family values and experiences, and HR must not disregard these perspectives. At the same time, HR professionals must recognize a difficult truth: HR is rarely a core priority for management in family-run organizations. Survival, production, and financial performance come first. Therefore, HR must follow an incremental approach—engaging management for short, focused discussions, presenting evidence through numbers, and demonstrating small but visible wins rather than overwhelming leadership with ideal models and jargon. Language and communication are critical in gaining acceptance. Policies often fail not because they are poorly designed, but because they are poorly communicated or never fully reach the people they are meant for. HR must use simple language, avoid technical jargon, and shift from talking about “HR” to talking about “we.” Understanding what management truly desires and where their pain points lie is essential. When HR becomes genuinely useful and solution-oriented, management is more likely to offer guidance and support. Trust grows when HR seeks direction rather than authority and aligns solutions with management priorities. A common frustration expressed by practitioners is that neither directors nor employees seem to like HR. One major reason is that HR professionals often immerse themselves in day-to-day operations and individual problem-solving while neglecting strategic and developmental work. Solving issues at the individual level without addressing systemic causes weakens HR’s credibility. Collaboration is another major gap. HR professionals frequently work in isolation and fail to share knowledge with peers, even when facing common challenges such as compliance issues, exploitation, or safety concerns. Sitting together, sharing experiences, and collectively finding solutions strengthens both the function and the profession. Family politics further complicate HR’s role. Gaining approval from one director can unintentionally offend another, creating tension and mistrust. Instead of acting as a messenger between family members, HR should respectfully request directors to communicate among themselves through established family forums. Strong cases backed by evidence are essential in such environments. When policies are developed, HR must ensure that all relevant stakeholders are made aware, engaged, and supportive. Seeking visible backing from the policy approver and using real-life examples can significantly improve implementation. HR professionals must also act like internal consultants, quietly building credibility so that leadership instinctively turns to them when challenges arise. Confidentiality and integrity are non-negotiable in family businesses where trust is fragile. Any breach can permanently damage HR’s standing. At the same time, HR must remain loyal to the profession while aligning with the organization’s culture and realities. Understanding generational shifts, particularly the emergence of Generation Alpha, is equally important, as communication styles and expectations are changing rapidly. Ultimately, HR’s effectiveness in family-run businesses depends on understanding the business and its values, understanding people, clearly articulating HR’s value, and measuring contributions in meaningful ways. Professional collaboration, continuous learning, ethical conduct, active listening, and empowering teams all contribute to long-term credibility. Even simple gestures—acknowledging management support, sharing both successes and failures, and maintaining a positive demeanor—can make a significant difference. HR does not need louder voices in family businesses; it needs clarity, integrity, empathy, and the patience to build trust step by step.