The  2023 Family Business Survey suggests Australia is sitting on a goldmine of untapped potential within its family businesses. The report commissioned by Grant Thornton suggests more diverse teams could be the key to future family business success.

The survey data indicates that almost half of the respondents (49 per cent), view gender diversity as a priority or consider it important for their businesses. However, the findings suggest that uncertain economic conditions may be diverting business owners’ attention back to day-to-day operations, leading to less emphasis on strategic pillars like diversity and inclusion initiatives.

The research backs up the positive connection between diversity on teams and financial outperformance, with the connection strengthening over time (McKinsey, 2020). Businesses excelling in diversity and inclusion are those actively adopting structured strategies to achieve gender diversity goals, fostering a sustainable culture of inclusion.

The report emphasises the advantages family businesses gain from implementing diversity. Despite diversity targets being lower on the priority list, family businesses still recognise the benefits of gender diversity. These include improved staff performance, acquisition and retention, and enhanced decision-making.

The survey revealed the level of importance of diversity and inclusion varied depending on age. Respondents aged between 18 -24 held the highest level of interest in gender diversity strategies at 67  per cent (two in three). Women in family businesses recognise the benefits of sustainable strategies, showing a 60 per cent interest. While businesses operating for 71-100 years (third or fourth generation) are developing, embedding, or realising gender diversity strategies, with a 50 per cent interest.

While the benefits are evident, the survey also highlights challenges. Respondents cite barriers to achieving gender diversity outcomes, including a lack of suitable candidates (19 per cent), low strategic priority (14 per cent), and a competitive job market (7 per cent). However, a quarter of respondents note no barriers to diversity within their family businesses.

Kirsten Taylor-Martin, Partner & National Head of Family Business Consulting at Grant Thornton, emphasises the importance of overcoming challenges to create diverse teams.

“Creating a diverse team is important, but it doesn’t come without challenges. Industries that have more female and female-identifying participation such as childcare, as well as family business owners who have children all from the same gender working together, may find it more challenging to think outside of the box when it comes to their gender diversity strategies. However, now is the perfect opportunity to try and approach diversity from a new angle, building structures into your business governance frameworks to ensure diversity of thought, even when industry barriers seem present.

“For family businesses to continue to incorporate diversity and gender into their business structures, it’s about identifying what they can – and are most likely already doing through their engrained family values,” Taylor-Martin said.

The report suggests diversity strategies can integrate into social and governance pillars within businesses.

“Family businesses need to go beyond finding diversity opportunities in operational staff and look to non-family employees, Non-Executive Directors, Advisory Boards or Partnerships to showcase diversity. It’s about fostering diversity to ensure quality decision-making, growth and the best outcomes for all people and the business,” concluded Taylor-Martin.

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