MANAGING THE PERFORMANCE OF FAMILY AND NONFAMILY EMPLOYEES THROUGH FAIR POLICIES AND COMPENSATION

Authors

  • Ratri Purnama Pawistri Indonesia University of Education image/svg+xml Author
  • Salwa Marizcha Visylla Indonesia University of Education image/svg+xml Author
  • Wanda Didah Wulandari Indonesia University of Education image/svg+xml Author
  • Dede Kurnia Indonesia University of Education image/svg+xml Author

Keywords:

family business, fair compensation, organizational justice, employee performance, family employees, nonfamily employees

Abstract

This study aims to systematically review how fair compensation policies and systems affect the performance of family and nonfamily employees in family businesses. Using the Systematic Literature Review method based on 18 articles published between 2017 and 2025, the review results show that distributive and procedural justice significantly influence the motivation, satisfaction, and productivity of nonfamily employees, while family employees are more influenced by loyalty and the value of socioemotional wealth. Implementing performance-based compensation and transparent evaluation has been proven to reduce conflict and increase organizational commitment. This study recommends that family businesses establish objective evaluation systems and annual compensation audits to ensure meritocracy and fairness.

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Published

2026-03-20

Issue

Vol. 4 No. 2 (2026): Proceedings of the 4th International Conference on Education, Economics, Business, Entrepreneurship, and Finance (ICEBEF 2026)

Section

Articles