Creating Opportunities Some professionals avoid family-run businesses because of the perceived lack of opportunities. But, at Korman Residential Properties Inc., the fourth generation now running the business is committed to “sharing the wealth,” says Albert (Abby) DeFruscio Jr., vice president of asset management. DeFruscio started working for the Korman family when he was 16 years old. His job was to water the grass for the single-family homes – previously the company’s main focus – that were not yet sold.
Now, at 48, he works hand-in-hand with John and James Korman, president and executive vice president, respectively.”Every employee knows Jim and John,” says DeFruscio. “They let you run the company like it’s your own.”
The company also believes in rewarding their employees, says DeFruscio. “If [Korman Residential] is making money, employees are making money.”
Each year, employees come up with a business plan, explains John Korman. While there are guidelines on what the company wants to accomplish, it’s important that the employees feel like it’s their plan, he says. “They are [rewarded] heavily on the bottom line of that plan,” he adds.
And it’s not just senior management or leasing agents that earn bonuses, says James Korman. “I wanted to make sure that everybody was [motivated] toward the same thing,” he says. “It was important that the regional director had the same exact goals as the manager, the leasing person and [even] the maintenance supervisor.”
So, Korman Residential bases its bonus structure on cash flow. “That way, everybody is looking at the same thing,” says James Korman. “And I think that people really like that.”
Just as important to employees is the respect and commitment that the Korman family demonstrates, says Jerry Hellmann, president of American Furniture Rentals. “I think having a family-run business makes them a little more reasonable, less dogmatic, and they listen and work with you.”