Under this philosophy, fair is based on concepts of equity. A manager operating with a family-first approach would say that all members are part of the family and therefore should be paid the same irrespective of the job they are doing. The business is here to serve the family and we will create a job for everyone. Here the criteria for fair is based on notions of equality. The notion of fair can be interpreted in other ways.
Funds flow from a family to individual family members in a variety of ways.
This can quickly become confusing and lead to miscommunication and misunderstandings. They often see things differently form those operating within the business. To overcome these complications, you need to develop a compensation system that makes sense and is understood by all. The first step in designing a compensation plan is to decide what approach to compensation fits best with your philosophy. If you base compensation on market value, the market value for each job in the business needs to be established.