Justice in Compensation; Family vs. Non-family Business HR Issues

Purpose – Present study aims to shed light on some of the HR issues of family businesses, includingorganizational justice, pay satisfaction, and turnover intentions of family business employeescompared to non-family business employees.Design/methodology/approach – 301 family and non-family business workers from USA weresurveyed. Regression analysis used to test the relationships and MANOVA was used to testdifference between groups.Findings – Results show that while family business employees are less satisfied with benefitpackages, their distributive justice perceptions, pay perceptions, and turnover intentions are notsignificantly different from non-family employees’. Furthermore, moderation analysis reveals thatfamily involvement does not significantly change the relationship level between distributive justice,pay perceptions and turnover intentions.Discussion – According to our results family business managers should be careful with benefitpackages and pay attention to keep a just environment to prevent possible increased turnover.Furthermore, family business managers should keep familiness impact under control so that it doesnot reach to a significant level to impact justice perceptions and turnover intentions. While familybusiness literature is developing constantly, non-family employee issues, particularly blue-collarworker issues are very limited. This study showed that family businesses are neither good nor badregarding blue-collar employee HR issues and family and non-family business employees are notdifferent in their justice perceptions. This valuable contribution should lead researchers to seekadditional constructs to evaluate causes of family firm HR issues.