Wealth and Relationships: Unmasking “Fake Jobs” in the Family Business

As Halloween approaches, masks come out — but for some family members in family businesses, the disguise isn’t seasonal. They spend years hiding behind titles they didn’t choose, in roles they don’t fit, pretending to add value they don’t believe they bring.

Family members who receive jobs, promotions, salaries, or distributions they would never have achieved without the right last name often find themselves in an awkward spotlight. What begins as an attempt to preserve family ownership or harmony can easily become the source of deep family tension if not handled proactively.

 At a recent meeting focused on Family Offices, the table buzzed with one uncomfortable truth: “Fake Jobs.” These are positions given to family members that either don’t add value or require a skill set far beyond their training. The question was simple but challenging: How to handle it?

In one of our own families, a 40-year-old son was destined from birth to run a $200M division of a real estate development company. While his siblings thrived in their chosen paths within the family enterprise, he drifted at the executive level – carrying the family name and legacy, but contributing of little substance. He wasn’t lazy or entitled – just lost. A handsomely paid spare part with no purpose, that the company didn’t know what to do with.

In another family, a brother received sizable distributions from the family business his brother worked tirelessly to sustain. The payments, intended as gestures of inclusion and legacy, became sources of guilt and resentment – one brother questioning his worth, the other wondering if he was rewarding inheritance over merit.

While often well-intended to preserve family ownership, maintain family harmony, and uphold the family’s social status, the consequences can be significant if left unaddressed.

Consequences of “Fake Jobs”

Resentment: Working family members grow frustrated when others are compensated for roles that add little or no value. Over time, that resentment can divide families and erode unity.

Embarrassment: The family member in the “fake job” knows they aren’t contributing meaningfully. Receiving unearned income can quietly damage their self-esteem and alienate them from both the business and their identity.

Erosion of Values: Mixed messages — limited authority combined with inherited privilege — create a “trust fund” culture that can undermine the company’s integrity and demotivate non-family employees.

Succession Risk: Placing family members into unearned or unwanted roles leaves dangerous gaps in leadership readiness and puts the business’s future at risk.

Steps to Turn “Fake Jobs” into Real Purpose

• Establish Criteria

Define the standards for participation. For example: attend four quarterly meetings, act as a responsible beneficiary, represent the family at events, and uphold shared values. Clarity reduces confusion and resentment

• Be Transparent.

Family leadership can show their support by endorsing the role and explaining why it matters. If a position is symbolic – meant to preserve inclusion or connection – say so. Transparency gives everyone, including the family member, permission to accept and embrace the role authentically.

• Make it Real.

Co-design deliverables and expectations with the family member. Establish measurable outcomes so that the role carries weight and dignity, not pretense.

• Support Discovery.

Offer coaching or development resources to help family members discover their own path — whether within the family business or beyond it. Enable them to move from the passenger seat to the driver’s seat and discover an elevated level of confidence, purpose, and contribution.

Unmasking the Truth

Every family business has its ghosts — old habits, inherited titles, and roles that no longer serve. The challenge isn’t to exorcise them, but to unmask them. When families replace pretense with purpose, they preserve not only the business but the dignity and unity that sustain it-and help each family member find where they truly belong.