How To Keep Your Best Household Employees

Mar 4, 2025 | Family Office, GTM Blog, Household Payroll & Taxes

For family offices and high-net-worth families, employee retention is crucial. Long term staff are the backbone of seamless operations, providing invaluable support and discretion. Losing key employees can disrupt everything, from daily management to long-term goals.

Retaining top household and estate staff in today’s competitive job market requires more than just a good salary. Let’s explore strategies family offices can use to keep their best employees.

Compensation

Competitive compensation is essential for retaining employees, and family offices should regularly benchmark their household staff’s performance. Even when things are running smoothly, it’s still crucial to conduct annual reviews. These reviews help ensure salaries remain competitive and provide staff with valuable opportunities to voice concerns or request adjustments to their compensation.

Vacation and Sick Time

Generous benefit packages can go a long way to retaining household staff. Family offices should prioritize offering ample vacation and sick time, recognizing the importance of work-life balance, which can often be overlooked in demanding service roles. Paid family and medical leave and/or mandated sick time are required in many states including California, Massachusetts, and New York.

Health and Other Benefits

Providing health benefits demonstrates a family office’s commitment to the long-term well-being of its household staff. There are many ways a family office can effectively provide health benefits for their employees, including an Individual Coverage Health Reimbursement Arrangement (ICHRA). Under an ICHRA, the family office contributes a fixed amount to an employee’s account. Staff can then choose their own health insurance plan that suits their needs and preferences and get reimbursed by the employer for the plan’s premiums and/or other qualified medical expenses. Another option is offering a Flexible Spending Account (FSA), allowing staff to save on healthcare costs by using pre-tax dollars for medical or childcare costs.

Retirement plans are a crucial component of a robust benefits package for household staff. Offering a well-structured retirement plan, such as a 401(k) or similar, demonstrates a long-term commitment to your employees.

Positive Work Environment

A positive work environment can go a long way for family offices seeking to retain their staff. This includes fostering open communication, mutual respect, and consistent recognition. Acknowledging staff’s long-term contributions demonstrates a commitment to their professional growth and reinforces their value. A dedicated HR consultant can play a vital role in maintaining this positive environment for larger family offices.

A family office that prioritizes competitive salaries, comprehensive benefits, and a positive work environment will cultivate a team of loyal, dedicated employees invested in the family office’s long-term success.

At GTM, we understand the unique needs of family offices and can help you develop and administer competitive compensation and benefits packages that attract and retain top talent. Call (800) 929-9213 or schedule a complimentary, no-obligation consultation at your convenience.