Leaving behind a strong management team should be an essential step in any business owner’s succession plan. Keeping key employees is crucial to growing business cash flow and value and attracting sophisticated buyers. It is also vital if you are planning on transferring the business to your management team or children.
The first step in building an incentive plan is identifying the key employees you want to benefit from the plan. Key employees are apt to act more like owners than employees. They are up to challenges and are always looking for the next opportunity. Key employees have a stake in the company like it was their own. Once you’ve identified your key employees from your other employees, you can start planning incentive programs to keep them around.
Our white paper on key employee incentive plans includes the five criteria you need to consider when creating a plan. It also outlines the pros and cons of offering a stock- or cash-based plan, along with details to consider for each. We have included a downloadable employee benefit checklist you can use to create and evaluate your incentive plan.
With these tools, you’ll be that much closer to achieving your goal of creating an airtight succession plan. Want to know more about the process? Contact us, and we can guide you through the rest.
Read the white paper – Employee Incentive Planning
Download the checklist – Employee Benefit Checklist
Written by Chortek
Posted in Succession Planning