Compensating Family Members – The Most Sensitive of Subjects

Honestly, are you truly worth what you are getting paid?

Family member compensation is a sensitive subject and can spark up conflict quicker than almost any other single issue in a family business. Family members tend to either be undercompensated or overcompensated, rarely are they in-line with the pay scale for their position in the outside market. Family businesses carry a stigma and false perception of over paying their family members. I have found it more often is the opposite and the majority of family members are compensated below the market salary for their position. How does this happen? More…

10 Signs You Might Need a Family Meeting

Family Meetings improve family communication and help to get everyone on the same page. These meetings aren’t just for resolving conflict and sensitive family issues. They are also an effective method for discussing the strategic direction and vision of the business from the family’s perspective before sharing it with others within the company.

10 Signs You Might Need a Family Meeting

  1. Avoiding sensitive family issues hoping they will go away
  2. Personal issues are creeping into the business
  3. Seldom discuss the future direction of the business
  4. Avoiding succession planning and ownership transition discussions
  5. Struggling with the division of responsibility between family members
  6. Need a policy for family employment beyond current members
  7. Dealing with the need of hiring non-family managers for the first time
  8. Struggling with compensation plans for family members
  9. Torn between being a lifestyle or professional business
  10. Disagreement on growth rate and need for outside financing

If you have some of these issues in your family business, don’t worry, you’re not alone. Research shows that 90% of family businesses don’t hold family meetings. Why not be a part of the 10% Club who do.

 

 

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