Family business owners: Setting compensation levels at your company is likely a challenge, but there are ways to address the distinctive needs of both family and nonfamily employees. https://hubs.li/Q02CwFF10
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When the CEO of the family business has a question about her personal legal or financial matters, it’s a natural thing to stroll down the hall to check in with a professional who’s already on the company payroll. But how long is this arrangement still ideal? #familyoffice #familybusiness #wealth Canadian Family Offices
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How family businesses can solve the compensation puzzle. Family-owned businesses face distinctive challenges regarding compensation, largely because they employ both family and nonfamily staff. Salary inequities among siblings, for example, can breed resentment. Meanwhile, nonfamily employees may become disgruntled over preferential treatment of family employees if they feel those family members aren’t pulling their weight. Addressing compensation in a family business calls for an objective understanding of the company’s distinctive traits, culture and strategic goals, along with a healthy dash of creativity. There are ways to tackle the challenges analytically to arrive at an overall strategy that’s reasonable for everyone. Contact us for help.
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Family business owners: Setting compensation levels at your company is likely a challenge, but there are ways to address the distinctive needs of both family and nonfamily employees. https://bit.ly/3L3XUw5 #FamilyBusiness #Business #Compensation
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In most cases, the answer is no. “Fair” does not mean “equal” when paying family members who hold very different roles and decision-making authority within the business. Unfortunately, it’s a misstep many families make in generational business transitions. We've seen it firsthand—a client who made the "equal pay" mistake. In this case, the business transitioned from one generation to the next without a solid plan. The sale price was inflated based on the retiring generation's needs, not the business's actual value (that’s another story!). And here's the kicker—all family members, from the President to the production worker, were paid the same, even though their contributions were worlds apart. The result? Overpaid positions filled by underqualified family members, and a business struggling to stay afloat. Not to mention the feelings of animosity from those who held higher levels of responsibility in the company. Each family member brings a unique blend of education, experience, and position to the table. Paying them equally, regardless of these factors, could lead to some serious mismatches. Imagine shelling out $100,000 for a payroll clerk—that just doesn't add up. And it’s a recipe for unhappy family gatherings for years to come. At Journey Consulting, we partner with family business owners on their Value Journey™ to achieve results and ensure successful transitions. 📅 Book your complimentary consultation call to get started! https://lnkd.in/edYZ2uw Go deeper! Enjoy our blog on family business dynamics: https://lnkd.in/g-P_gdHe (920) 770-4141 | info@journeyconsult.com www.journeyconsult.com #familybusiness #successionplanning #business #exitplanning
Family business - does fair mean equal pay?
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Double profits with a business that can run without you! | Author of "The Value Journey" | Certified Exit Planning Advisor | Strategic Consultant | Speaker | Board Director
Helping a family business on the verge of collapse turn things around is incredibly satisfying as a business management consultant. In the case of this client, the 1st generation believed "equal = fair" when structuring the transition to the 2nd generation. When our firm got involved, we worked with the company's leadership to get back on track, including restructuring the organization and roles to compensate family members for their position rather than ownership. Read more about this client's turnaround in Chapter 9 of "The Value Journey"! https://lnkd.in/gTfu6T2q
In most cases, the answer is no. “Fair” does not mean “equal” when paying family members who hold very different roles and decision-making authority within the business. Unfortunately, it’s a misstep many families make in generational business transitions. We've seen it firsthand—a client who made the "equal pay" mistake. In this case, the business transitioned from one generation to the next without a solid plan. The sale price was inflated based on the retiring generation's needs, not the business's actual value (that’s another story!). And here's the kicker—all family members, from the President to the production worker, were paid the same, even though their contributions were worlds apart. The result? Overpaid positions filled by underqualified family members, and a business struggling to stay afloat. Not to mention the feelings of animosity from those who held higher levels of responsibility in the company. Each family member brings a unique blend of education, experience, and position to the table. Paying them equally, regardless of these factors, could lead to some serious mismatches. Imagine shelling out $100,000 for a payroll clerk—that just doesn't add up. And it’s a recipe for unhappy family gatherings for years to come. At Journey Consulting, we partner with family business owners on their Value Journey™ to achieve results and ensure successful transitions. 📅 Book your complimentary consultation call to get started! https://lnkd.in/edYZ2uw Go deeper! Enjoy our blog on family business dynamics: https://lnkd.in/g-P_gdHe (920) 770-4141 | info@journeyconsult.com www.journeyconsult.com #familybusiness #successionplanning #business #exitplanning
Family business - does fair mean equal pay?
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Family business owners: Setting compensation levels at your company is likely a challenge, but there are ways to address the distinctive needs of both family and nonfamily employees. https://bit.ly/3L3XUw5 #FamilyBusiness #Business #Compensation
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Should You Put Your Spouse on Your Business Payroll? Married entrepreneurs often face this perplexing question. While it might seem like a straightforward decision, navigating the financial and tax implications requires careful consideration. In this article, we'll explore the key factors, dispel common misconceptions, and shed light on what savvy business owners need to know before making this critical move. #SmartBusinessDecisions 🧠 #MarriedEntrepreneurLife 💍 #SeekExpertAdvice 🤝
Should You Add Your Better Half to Your Business Payroll? Let’s Break It Down 🤔
https://cherycpa.com
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Family remuneration in a family-owned business. Setting a fair and justified salary for family members is essential for the wellbeing of the business and maintaining harmony within the family. Christopher Leahy, Director, Business Advisory, outlines some guidelines to assist with setting fair and justified salaries for family members. #family #familybusiness #governance
Tips to navigate family remuneration in family-owned businesses
https://williambuck.com
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Tired of the endless cycle of delivering bonuses, only to lose talent and fight to recoup unearned bonus amounts? Learn how to break free from clawback purgatory and optimize your compensation strategy with 3 essential steps! Don't let clawback hurdles hold back your organization's growth. Dive into the full article here: https://hubs.la/Q01-qmHH0 #CompensationStrategy #EmployeeRetention #ClawbackPurgatory
3 Steps to Breaking Out of Clawback Purgatory
keepfinancial.com
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