How to get a fair salary in a family owned business

by Evil HR Lady on December 17, 2013

Did you know that more than half of the American workforce works for a “small” business?

(Small business, here, is defined as one with under 500 employees.) I get many emails from workers at small businesses, and it is predominantly those who work for family owned businesses that seem to run into the most trouble. For instance, this woman wrote me last week:

“I work for a small company (less than 50) employees, who has a total of 5 directors (three women and two men), one of which was hired in 2010. Two women and one man are family members. The other woman (me) and other man are not. When the non-family member male director was hired in 2010 he was given a 40% pay raise to match almost what the other male director was making. I was hired in 2006, and my last pay raise was in 2008. I received a large bonus in 2010 (before this director was hired), but nothing since. In fact, I was forced to take a small pay cut in 2011 because the company was struggling. The man who previously held my job got reviews and raises every year. I get nothing.  Every other year I have been told “you’re doing a great job, you don’t need a review.” I’m leaving anyway, but I figured I would ask – no one seems to know which yardstick to use, all the directors as a pool, or only those directors who are not also owners.”

To read the rest, click here: How to get a fair salary in a family owned business

{ 2 comments… read them below or add one }

KAS December 17, 2013 at 3:55 pm

Find another job. I am a long-time employee of a family-owned company. In terms of pay scale–there are three circles: family, inner and outer. In 10 years I have yet to see someone make the jump from one circle to the next.

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Evil HR Lady December 19, 2013 at 9:21 am

Family owned businesses tend to have such problems with pay and morale.

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