Locally owned family businesses are the backbone of the American economy, and we are so fortunate to be able to work with many of them at Rea. It is a proud moment when a parent can pass the legacy of business ownership on to their children, but it also brings some unique challenges.
Our guest Kevin Monaghan, the owner of Intuitive Compensation Group, works with businesses that struggle through these multi-generational challenges. In this episode, he will help us identify what these challenges are and what multi-generational business owners can do to maintain equality among children, while addressing the concerns of long-term employees so you can achieve as close to a “win-win” scenario as possible.
This is the first of a special two-part series with Kevin. On our next episode, we will dive into the topic of the golden handcuffs and their impact on employee retention.
One of the great things about working with family-owned businesses is the excitement and satisfaction that comes when the business successfully passes through multiple generations. However, successfully transferring a business to a child is easier said than done. So how do you give both sides clarity, while at the same time, keeping it fair – because the parent(s) have to take care of themselves as well, and there might be multiple children vying for leadership positions. It comes down to creating compensation packages that are fair to everyone, if not necessarily equal.
If your family owns a business or you are employed by a family-owned business, you will be interested in these other topics discussed in this episode:
- The family business dynamic and the internal family power struggles that can exist as a result.
- What the owners of family businesses can do to ensure that the next generation of family members – whether they work in the business or not – are all treated fairly.
- How older business owners can balance their children’s development and maintain equality while keeping key employees from feeling as though they’ve been passed over.
- When families should be starting this process.
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Succession Planning: A Must For Every Business Owner – Business owners who fully understand their succession options, set a course of action to implement the plan and seek assistance to ensure the plan is being implemented as desired will see optimal results. Read on to learn more.
Click here to read the official transcript for episode 171, “how family-owned businesses can keep the peace between family & tenured talent”
CRN202102-242649: Monaghan – Rea & Associates Podcast 171 – Family B