Nepotism threatens business expansion

Construction bosses are damaging their chances of growing their businesses by employing family members, according to a study by think tank The Tenon Forum.

Its survey found that more than 60% of owner-managers in construction currently employ members of their family, with nearly a third planning to hand over the firm to their children.

But the practice is holding back contractors in their bid to increase profits and turnover, according to Michaela Johns, director of business services at Tenon.

She said: "Most of the time, the best person to grow a construction business is not someone from your own family.

"Construction in general is becoming more professional and that culture change needs to be reflected in looking for the best skills from outside the family circle. Many solid businesses have been run into the ground by next-generation owners who did not possess the ability or commitment needed for the business to thrive."

The research found that larger construction companies display less nepotism, with only 18% of £20m-plus turnover firms employing family members.