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Family Business – Taking the Perks Away

Posted by on July 15, 2009 at 9:20 am.

Despair“Companies are slashing benefits right and left.   But it’s tougher to lose the company car or a generous dividend when your dad or your sister takes it away,”  writes Jillian Mincer in a recent Wall Street Journal article.   Small businesses in America, most of which are family-run, are now pressed to cut benefits and perks to their family members in order to sustain their operations.  Needless to say these decisions are often contentious and quite emotional.

“Another challenge is that different generations typically don’t feel the same way about the company.  The baby boomer who founded the firm may be willing to work extra  and to accept significant cuts.  But those in their 20’s may not even appreciate how lucky they are to have a job in a recession.”

Occasionally management  of closely-held businesses believes they are entitled to their “bennies” yet asks their rank and file to bear the burden of the cuts.  Depending on your POV there are plenty of pro and con arguments for such a decision.

During these economic times have you seen or been faced with cutting benefits to family members?

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