Does Money Motivate? Let’s Talk Families and Business

Two Swiss economists decided to tackle this age-old question, but not with theories or spreadsheets. They went straight to the pitch—the Bundesliga, to be exact.

They studied 487 professional footballers. Why footballers? Simple. They’re paid based on performance, making it easy to calculate what a “fair” wage should look like.

First, the economists crunched the numbers to figure out each player’s “fair” salary. Then, they compared it to what these players were actually earning.

The results were revealing.

Footballers paid above their “fair” value? They ran harder, tackled stronger, and sprinted faster. They worked like their careers depended on it.

And those paid below their “fair” value? They slowed down. Their sprints were fewer. Their effort faded.

The takeaway was crystal clear: People perform better when they feel valued—and fair pay is one way to show that.

But what does this have to do with family businesses?

Skin in the Game: A Lesson for Families

In the early days of a family business, sacrifices are part of the deal. Owners often take little—or no—salary at all. They work crazy hours, not for a paycheck, but because they believe in the dream.

But here’s the kicker: You can’t expect employees to do the same.

Why? Because they don’t have skin in the game.

They didn’t mortgage their house to get the business off the ground. They don’t see their name on the door. They’re there to do a job, and a fair paycheck is what keeps them motivated.

If you underpay them, the resentment starts creeping in. And when that happens, effort drops. Just like those footballers who stopped sprinting.

What About Employing Your Kids?

Here’s where things get even trickier.

Many family businesses bring their kids into the fold. It makes sense—who better to continue the legacy?

But there’s a danger here. If you overpay your children or give them cushy jobs without earning their stripes, it breeds resentment among the staff.

Employees see it. They talk about it. “Why should I give 100% when the boss’s kid gets paid more for doing less?”

On the flip side, if you underpay your kids because they’re “family” and “should understand,” that can lead to resentment too. No one wants to feel undervalued, not even your own children.

The key? Make sure everyone feels like they’re being treated fairly. Pay them based on their contribution, not their last name.

The Bigger Picture

This isn’t just about money. It’s about respect.

When people feel respected, they give their best. When they feel undervalued, they hold back.

Fair pay sends a message: “We see you. We value you. You matter.”

It’s true for Bundesliga footballers. It’s true for your employees. And it’s true for your kids.

So, if you’re running a family business, remember this: Fair pay isn’t just a cost. It’s an investment—in your people, your culture, and your legacy.

Because at the end of the day, a business is only as strong as the people running it.

And if you want them to keep sprinting, you’ve got to make it worth their while.