Running a family business has its advantages — but it also comes with unique challenges. For Alvin Lao, CEO of D&L Industries, one of the most important leadership decisions he’s made is drawing a firm line between family and business when it comes to hiring in-laws.
“We don’t hire in-laws,” Lao says. “Not because they’re not qualified, but because we’ve seen in many family businesses that the presence of in-laws can be a source of conflict.”
The issue, Lao explains, isn’t necessarily about competence. It’s about dynamics. “Especially if the boss is an in-law and reports to a family member — what do you do if there’s a mistake? It becomes very sensitive.”
To maintain both family harmony and business professionalism, D&L Industries follows a strict set of rules. One of the clearest: in-laws are not allowed to work in the company.
But that’s not the only requirement. Even family members by blood don’t get a free pass. “Before a family member can join, he or she must be a college graduate and must have worked outside the company for at least two years,” Lao says.
When he joined the business himself — despite holding an MBA — he started as a management trainee. “I was a management trainee for one year, no side jobs allowed. One hundred percent of your energy must be focused on the company,” he says. “That way, no other family member can complain. Everyone sees the commitment.”
Lao takes it a step further: family members must add real value to the business. “If at the end of the day, you don’t bring additional value, why should you work with us? It sounds cruel, but we need to protect the business.”
The takeaway: Leadership in a family business isn’t just about vision — it’s about structure. And for Alvin Lao, putting boundaries in place is how you keep both the business and the family intact.
This article includes quotes from an interview originally published by Esquire Philippines, authored by Henry Ong.
