There are 4 of us...2 in the front office and 2 in the warehouse. Should we be getting paid according to importance or to avoid friction should we get paid equally since we are family? I would really like some input from people who are or have been in this situation.
2006-09-14 06:26:00 · 4 answers · asked by scootzz777 2 in Business & Finance ➔ Other - Business & Finance
If the 4 of you own the business jointly, share the PROFITS equally (or based on ownership %).
If one job is more important (example, company prez), then salary should be higher. Have a mgmt consultant come in and set SALARIES based on job responsibilities.
2006-09-14 06:41:49 · answer #1 · answered by SPLATT 7 · 2⤊ 1⤋
I'm an accountant, and I've frequently seen this situation. No matter what Mom and Dad decide, it seems that at least one sibling is cheesed off. Ideally, you should be paid based on your skill. For instance, one of my clients had a son who was doing a lot of customer care type work, meeting with potential customers, arranging warehouse scheduling, etc. He got paid more than his sister, who handled most of the bookkeeping work. Truthfully, I thought both jobs were equally responsible, but that's the decision Dad made and both siblings were able to live with it. If that's not the case in your family, I strongly recommend that all of you sit down and discuss what you think would be fair. It seems to me that your parents will need to pay you equally in order to avoid any family strife that could fall over into your personal lives. Maybe there's something they could do to make the jobs more even. Ultimately, you're all still family and have to be with each other all of the time. Don't let money damage the most important relationships you'll ever have.
2006-09-14 13:37:44 · answer #2 · answered by SuzeY 5 · 0⤊ 1⤋
You work different jobs. If one got sick, would you hire an outsider to fill in at a different pay rate? Unless you have contracts in place with the employees who are siblings or they are actual shareholders with other rights proscribed in the incorporating document (corporate articles, llc articles, partnership agreement, etc..) then no way. Even in the respective sense that there are two positions, warehouse and front office, the two sibilings working at each location may handle different responsibilities at each. Pay is based on work performance, title, position, skills brought to bear and work ethic, in other words, what is earned, not some implied "right" of family business. Poor example to future generations for it to be otherwise, cause we know socialism just dont work.
2006-09-14 13:40:29 · answer #3 · answered by William P 3 · 0⤊ 0⤋
Not necessarily - I think you should be getting paid what others in similiar positions within the business are getting paid. Additionally there are four of you - did you all start the same day? Who has seniority? Typically the people who have been there longer make a bit more.
I always believe it is about the work. I have two children that I would not hire to work for me. I love um but they will not work for me.
2006-09-14 13:35:52 · answer #4 · answered by freemansfox 4 · 1⤊ 0⤋