Good says sweat equity goes beyond an hourly salary and considers incentives and expectations.
Sweat equity goes beyond an hourly salary and considers incentives and expectations.
To ensure both sides get a fair deal requires calculating value.
Good says a value formula for labour provided by a child or teenager may simply total cash plus cash equivalents. The latter may just be the worth of, say, using the truck.
The equity side comes into play for a returning adult offspring who may have left the farm for post-secondary education. Much more is expected as the offspring moves up the ladder from labour provider to key employee and manager.
“I want more value than just employment, and that’s why I’m willing to add an equity side,” Good says.
Parents seeking $60,000 a year’s worth of value out of their returning offspring might pay $40,000 of that in cash, with the rest split in cash equivalence (like a home and food) and equity in the business.