Compensation For the Long Haul with Kevin Monaghan
Franchise Euphoria
English - February 06, 2018 08:00 - 32 minutes - 29.7 MB - ★★★★★ - 165 ratingsEntrepreneurship Business Investing franchisee franchisor internet money brown business buy buying entrepreneurs euphoria Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Today, we welcome to the show Kevin Monaghan, who is part of Intuitive Compensation Group, a company focused on creating incentives for business owners, partners, investors, and key employees so they can work and profit together as a whole. In the franchise world, franchise systems often see exponential growth, and the problem they encounter is they can’t keep up with the demand for high-quality employees who are invested in the company. Kevin is here to tell you how to do just that and all the way bringing a fresh and unique perspective of this process.
Key Takeaways:
[3:10] Kevin was first introduced to the world of compensation when he moved to Shanghai, China where in order to operate a business, you had to construct a 50/50 partnership. This led him to the compensation line of work which he brought back with him to the United States where these partnerships are not forced but it is still ideal to establish your compensation plan.
[6:25] How working with Chinese nationals gave him a better insight into what makes a good and viable partnership.
[7:15] Despite the drastic culture differences between China and the US, what wound up mattering to these businesspeople came down to human nature. Being aware, understanding, and communicating a path forward.
[8:55] Often times, to satisfy long-term employee growth, you have to allow the employees to grow with the system both in hierarchy and compensation.
[16:26] There are a lot of franchised business that want to incentive their franchisees with commission and continuing royalty percentages, but the problem with this is that you give away a large percentage of your franchise and you also can’t predict what the outcome will be.
[17:48] Everybody wants to make sure their own interests are accommodated but equity is not always the answer.
[18:25] You don’t want your compensation strategy to be a risk. Let the business be the risk and firm up the compensation.
[19:37] Using cash-value insurance as an incentive protects you from buyouts over time.
[20:55] Investors typically prefer to be incentivized with predictability of income.
[23:09] Oftentimes in a 50/50 partnership, five years into the relationship, somebody feels like they are putting in 80% of the work.
[24:29] For people who have the “rock star” employee, you need to find something to make sure he/she stays involved but without giving up equity.
[29:29] Once you get the financial satisfaction in place for your employees, it is important to satisfy them in other ways including responsibility, leadership opportunities, etc.
[30:07] The biggest mistake a business owner can make is that they think out loud and make promises without being able to see them into fruition.
Mentioned in This Episode:
http://www.intuitivecompensation.com/