Write Before the Fight (Part 8)

Amna’s family business literacy series continues as she identified another crucial document which is “Family Employment and Compensation Policy”. As all three siblings has already identified their areas of interest along with the expected role in the “Ahsan Wala” family business, it was important to write it down in the form of a policy document.

Family Employment and Compensation Policy

As she begins to write about the Family Employment and Compensation, the vision/purpose of this Policy document is highlighted first. It provides a common understanding of the shared objectives. Furthermore, this document outlines the credentials, expectations and selection criteria for the family members who have shown interest in working in the family business. Additionally, all the employed family members have a plan and course of action to carry on their tasks and responsibilities. Some of the key features of Family Employment and Compensation policies are listed below.

Succession planning – Clear pathways for successors.

Roles and responsibilities – Detailed explanation of the tasks and accountability.

Compensation plan – Fair, transparent and market-competitive remuneration packages.

Involvement – Policies created by mutual consent of the family members working in the business.

The policy serves as a Human Resources manual for families. This helps to avoid conflict as well as confusion within families regarding hiring family members and their compensation. That’s the reason Amna wanted her family to draft this policy document so everyone has clarity about their future financial compensation and plan their journey accordingly.