Develop talent now for a successful future
While incentives such as bonuses and profit sharing are important, recognizing achievements and building self-esteem are priceless.
Some business owners procrastinate or avoid communicating their succession plans because they fear how family members and employees might react. However, their silence may actually create more stress and cause harm to the business. Most employees—including family members—will feel more secure about the future if they know what to expect and how they will fit in.
It’s never too late to develop a business succession plan. But the earlier you start, the better. Estate planning experts agree that long-term plans to transfer businesses are generally much more successful than those “patched together” following the unexpected death or disability of an owner.
Business succession actually begins with each employee’s first day on the job
Think about it, whether he or she is one of your children or a high school student working part-time, that young person could someday be the head of the company.
Experts agree—succession planning includes creating an environment that motivates employees to use their talents and skills to reach their full potential and contribute to the success of the business. Sounds simple, but how do you accomplish it?
Perhaps a mentor program or an apprenticeship is a good start. Talented young people are more likely to stay with the company if they feel involved in something bigger than their own job. It is wise to provide opportunities by matching experienced workers with newer employees to guide them as they grow in their jobs.
As employees gain experience, they become assets to your business and their value increases. Providing key employees opportunities to gain well-rounded business experience through cross-functional training and experience is admirable. This no doubt helps them become dependable managers who can make good decisions and take initiatives to improve operations.