family-business-succession-planning

When your family are employees, understanding how much to pay them is complex.  There are no secrets within a business. Believe it or not, your employees will find out if a family member is being overpaid and resent them (and you).

Family in the business have formidable challenges just doing their job and earning the respect of employees. Don’t magnify this challenge by setting them up for resentment.

A way to create a win-win environment is to create a salary range for each position in your organization.  The salary range allows you to consider outside experience a family member gained as an employee somewhere else.  If they don’t have outside experience, then pay them in the bottom quartile of the position’s pay range.  Then, when their performance merits additional pay, give them a raise. 

If you pay extra for ordinary, you hinder the development of competent, capable, and committed successors. Like all your employees, you want your family to be extraordinary and motivated to work for the pay they deserve.  Therefore, pay ordinary for ordinary and make a big deal of any additional compensation merited as recognition for the extraordinary.

Click the following link to read the complete article on Franchising.com: How Much Should You Pay Your Family As Employees?

Read the article and then reach out to us to get some insights into your own situation. A few moments with us will provide you insight and clarity for your next steps forward. Contact Us




Family Dynamics and Family Governance

Family and Business alignment is hard to find when business issues liven up family dynamics.

However; with proper process, governance policies, and mutual respect built over time, a Family Business can thrive through multiple generations. Click the following links for more drill-down resources on  Family Dynamics and Family Governance.

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We can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.