Do you have children who are millennials/GenX, Y or Z? What are their beliefs? Millenials for example are those born between 1981 and 1996 who today would be 24 to 40 years of age.
They represent a significant demographic group, and by 2025, they will become 75 per cent of the global work force. This group of next gens will be the inheritors of a significant portion of the anticipated $ 40 trillion of wealth that will pass between the generations over the next number of decades.
First, do you wish to pass on your wealth to your children? Most would answer that affirmatively. If not, stop reading right now.
However, with your inheritance, one does not want to create an entitled silver spoon unambitious next generation. To avoid this is why you have to engage the the next gens in your family.
What appeals to next gens? From what I have read some key issues include
– social networks
– social responsibility (think ESG and B Corporations), and
– work-life balance.
Let’s talk about social networks. I personally think that these can be effective tools when used correctly and when not, can get in the way of effective communication. Communication is the key to be able to share ideas and thoughts within the family about the responsibility that goes along with the family business and its consequent wealth. Call me old fashioned but nothing like a face to face discussion, especially around sensitive topics.
Try using one of these next gen interest areas to engage them in the business and in the family wealth. For example, some family enterprises have begun their philanthropic efforts by allowing their children to:
1) define the purpose of the giving
2) decide on the specific charities to support.
This can help in the collaboration within this generation which can possibly be translated into the same collaboration that would be necessary in the business in later years.
So, I hope I have given you some thoughts and reasons to think about and approaches to engaging the next gens, including millenials, for the betterment of your succession plan.
Learn, consider, apply!
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