Every family business should establish “Rules of Engagement,” a policy for how family members will be permitted to participate in the family business. This often manifests itself in the form of a Family Business Employment Policy.
As with other documents whose purpose is to guide the business, the time to prepare an employment policy comes long before you need it. Regardless of the current age of your children, create an employment policy now! It will help you to avoid problems later.
Elements of a family employment policy fall under three categories, Entry into the Business, Compensation and Performance Evaluations/Exit from the Business. In the next three posts, I’ll discuss these elements in more detail.
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