‘Join our young and dynamic team’, ‘We're a big family here’, and ‘We work hard, play hard here!’. These are common phrases often used in job ads and corporate culture descriptions. They may seem innocuous enough, even endearing, but they can be red flags that signal a problematic approach to workplace dynamics in an organisation. Although the idea of a ‘work family’ may seem appealing, it can actually have adverse effects on both employees and businesses. Let’s take a closer look at why branding your workplace as a family can be counterproductive, how it can negatively impact staff recruitment and retention, and how organisations can cultivate healthy and authentic workplace connections instead.

The toxic effects of branding your workplace a family

Lauren Anderson, Indeed Talent Strategy Advisor, has a clear – and perhaps surprising – message for Australian corporate decision-makers: it’s high time to dismantle the ‘work family’ myth! Sure, the word ‘family’ typically conjures up associations with warmth, care or human connection. But in a workplace context, it can have unintended, and even undesirable, consequences.

Blurred boundaries and unrealistic expectations

For one, it can lead to blurred boundaries. In contrast to family relationships, which are to a large extent based on emotional bonds, workplace relationships are usually formed through contractual agreements and organisational hierarchies. In a professional setting, employees are expected to perform their duties, receive compensation and treat one another with respect. When a company adopts a ‘work family’ approach – which may even extend to family pets, as some businesses have started to allow dogs in the workplace! This can blur the lines between professional and personal relationships. Consequently, staff may have difficulty keeping their personal and professional lives separate.

Another challenge can be setting unrealistic expectations. After all, families are often associated with unconditional support, while loyalty to a company often hinges on performance or job security. So, again, labelling the workplace as a family can cause workers to make unrealistic assumptions. They may expect the same level of support and loyalty from their employer as they would from their family members at home. Naturally, this can set them up for disappointment if these expectations are not met. And – let’s be honest – that is a very likely scenario.

Exploitation and confusion

What’s more, when companies promote the ‘work family’ concept, the risk of exploitative behaviours in the organisation increases. In some instances, company representatives may even selectively use the family label to their advantage. For instance, they may claim to be a family when it benefits them but abandon this idea when it comes to cost-cutting measures, redundancies or salary negotiations. Such an opportunistic approach can erode trust and lead to resentment among the workforce, who may feel exploited. In addition, according to research referenced in Harvard Business Review, employees who operate in a family culture often fail to report any wrongdoing when they have close (or familial) ties to the other party. It's, therefore, a good idea to make sure your managers and executives are all on the same page here.

Finally, there is the issue of potential confusion in the usual work agreement between employee and employer. The primary purpose of any workplace is, of course, to conduct business and achieve specific objectives. Describing it as a family can, thus, lead to misunderstandings about priorities and obligations. After all, when employees think of their workplace as their family, they may prioritise personal relationships over job-related responsibilities, which may impede their productivity and efficiency. Clarity about professional roles and expectations is, therefore, crucial for a well-functioning organisation, and using the ‘work family’ label can introduce unnecessary ambiguity.

Cultivating authentic workplace connections

The 2023 Indeed Workplace Wellbeing Report uncovered that 50% of workers are likely to look for a new job in the next 12 months. This figure shows that Australian employees are definitely searching for something that gives them more satisfaction at work. A Monash University report also confirms that 'strong social connections are incredibly important for employee well-being'. Especially given that the same report also found that 24% of Australian workers are experiencing feelings of loneliness and isolation in their current or most recent job and, according to a study by the Australian Psychology Society, one-in-four Australians are lonely – and lonely Australians have worse physical and mental health and are more likely to be depressed. This ties in with the finding of a joint study by the Australian Psychological Society and Swinburne University, which also found that one-in-four Australians feel lonely, thirty per cent don’t feel part of a group of friends, and that lonely Australians have worse physical and mental health and are more likely to be depressed.

What’s more, 58% of Australians believe that work-life balance is the most important factor for their well-being. This is an indication that employers might be well-advised to tackle work-life integration instead of treating the workplace as a surrogate family.

Rather than falling back on the ‘work family’ rhetoric, companies might want to focus on fostering healthy and authentic workplace connections and building strong teams. One way to achieve this is through clear boundaries and communication. In the words of visiting professor at the University of Texas at Austin McCombs School of Business and author Brené Brown, ‘Clear is kind, unclear is unkind'. This adage applies not only to personal relationships but also to workplace interactions, where it pays to cultivate a culture of kindness. So, it’s a good idea for businesses to prioritise transparent communication and clearly defined boundaries to maintain healthy professional relationships throughout the organisation. And to make it clear that the workplace is not a family. Not least because clarity tends to foster understanding and can help employees navigate their roles more efficiently. Such an environment will also allow meaningful, authentic connections among staff to develop organically.

Furthermore, research by McKinsey has shown that employees who feel they have a clearly defined and compelling purpose at work are more likely to be engaged and stay loyal to their employer. What’s more, when this purpose aligns with the employee’s own values and aspirations, it creates a sense of belonging beyond the rather vague concept of a ‘work family’. As a result of this sense of connection, workers are likely to become more motivated and contribute to a shared corporate vision.

Friends, not family – or strictly professional relations?

Rather than promoting the idea of a ‘work family’, some companies might promote the idea of having ‘work friends’ instead. This means employees are encouraged to form friendly and meaningful connections with their colleagues while respecting personal boundaries. Or, as Gates puts it in his article in the Journal of Workplace Behavioral Health, ‘Workplace friendships are deliberate bonds between people in the workplace in which various degrees of confidence, care, emotional support, solidarity, honesty, and trust are shared.' After all, according to the 2023 Indeed Workplace Wellbeing Report, an impressive 74% of employees surveyed reported that having a close friend at work has a positive impact on their well-being, and 70% said it boosts their productivity and engagement.

However, the same report found that only 24% of employees surveyed consider positive relationships with colleagues important in order to thrive at work. This indicates that making friends at work per se does not seem to be a priority for Australian workers. It is, therefore, essential for corporate decision-makers to carefully assess whether fostering friendships among the workforce aligns with their organisation’s values and culture and would lead to a positive outcome.

Beyond this, some companies have successfully embraced a high-performance culture that values employees excelling in their roles without any pressure to consider their colleagues' family members. In such environments, performance takes precedence over personal connections. If this aligns more with your organisation's ethos, it may be a path worth exploring. If you do, try to establish some clear guidelines for your staff around personal relationships – because a 2020 survey by The Age and The Sydney Morning Herald of 107 Australian companies regarding the handling of close personal relationships found a distinct lack of consistent guidelines in organisations.

Red flags

All in all, while the idea of a ‘work family’ might sound appealing in principle, it’s important to recognise the potential complications associated with this concept and avoid promoting it in job ads for your organisation. Blurred boundaries, unrealistic expectations and the potential for exploitative behaviour can impede both personal and organisational growth. So, Australian decision-makers are well-advised to critically evaluate the ‘work family’ myth and promote genuine connections that benefit everyone involved – including the organisation as a whole.