The topic of generational transition and leadership change in family businesses is becoming increasingly relevant. Conscious preparation for this transition provides companies with a competitive advantage and facilitates the necessary organizational structuring.
Are you planning a leadership transition in your family business?
Our research has shown that Hungarian privately-owned businesses addressing generational transition are becoming more open and prepared for leadership changes. It is evident that this is a challenge that must be addressed, as ensuring the continuity of the successful businesses they have built is crucial.
The importance of generational transition and succession planning
It is essential to ensure that successful businesses built by Hungarian owners remain sustainable and that continuity is guaranteed. A well-structured company increases in value and becomes more attractive in the job market.
A well-structured business relies on transparent and clear HR processes and systems. These not only support the efficient operation of the organization and provide a foundation for a well-planned succession strategy but also help companies comply with upcoming pay transparency regulations. The EU Pay Transparency Directive requires legal compliance, which most companies will need to meet no later than 2027.
More than two-thirds of respondents believe that preparing a business for a leadership transition takes more than nine months and can extend up to one or two years. Therefore, timing is critical, and the process requires careful planning. Well-structured family businesses are attractive in the labor market due to their long-term vision and goals, strong values, agile operations, fast decision-making processes, and continuous, transparent internal and external communication.
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With over 30 years of active engagement with company leaders, we have significant experience in generational transition, leadership changes, and HR development related to these transitions. Our research, conducted with Opten Market Research, provides up-to-date data comparing current trends with findings from three years ago. We also benchmarked these results against international studies to offer a comprehensive view of the challenges Hungarian SMEs and private businesses face during leadership transitions.
Would you like to see the research results? Get in touch with us!
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