The satisfaction of non-family employees with High Involvement HR practices: evidence from family SMEs

Most family businesses employ more non-family employees than family employees, making them a crucial resource for family small-to-medium enterprises (SMEs). Thus, family SMEs must pay particular attention to developmental needs of such employees. However, there is limited empirical knowledge concerning how Family SMEs can manage and develop their non-family employees. Drawing on organizational justice theory, this study set out to investigate how and why non-family employees are satisfied with the High Involvement HR practices (HIHRPs) adopted by family SMEs. Empirical evidence was drawn from the experiences of 16 non-family employees from six SME family-owned enterprises. Findings suggest that a balance between formal and informal HIHRPs is need among family SMEs for non-family employees to be satisfied with them. Moreover, satisfaction with both formal and informal HIHRPs can encourage non-family employees’ engagement with the enterprise and the development of their skills and capabilities. Findings also suggest that the satisfaction with HIHRPs varies with respect to the organizational positioning of non-family employees. Our findings make a valuable and timely contribution to the human resource development and SME literatures in general.