August 2011

IZA DP No. 5899: HRM Practices and Performance of Family-Run Workplaces: Evidence from the 2004 WERS

W. Stanley Siebert, Fei Peng, Yasheng Maimaiti

This paper analyses HRM practices of family-run workplaces using the 2004 WERS. Family-ownership and management within workplaces in the corporate sector is our focus. This family-run group represents nationally about 26% of workplaces and 14% of employment. We find that employees in this group have stronger feelings of job security and loyalty, which we relate to family companies' HRM practices such as stronger support for long-term employment – an "inclusivity" linked to long-term orientation. We also find that family-owned and managed workplaces have better financial and quality performance measures than non-family, to which family-related HRM practices contribute.