Content under this page will guide family businesses through the workings of human resources, from salaries and job descriptions to benefits for employees.
Maria I. Marshall and Corinne Alexander
Keywords: human resource, risk, contingency plan
Human resource risk is critical to business development, yet it is often overlooked by the managers. This article provides information on how to tackle human resource risk by developing a contingency plan for the business. Each specific section in the plan is further explained in this article to further help you with the development of it.
Keywords: sweat equity, income distribution, on-farm heir, off-farm heir
The term “sweat equity” is used frequently in discussions of the contributions of an on-farm heir to the value of the family owned business. Sweat equity arises in part when an on-farm heir is paid less than their true opportunity cost to work for the business. The term also arises in situations where the business has grown substantially in value due to the managerial ability and efforts of the on-farm heir. This article describes why sweat equity is commonly used on farms that include multiple generations, and discusses how to measure sweat equity.