Why Singapore SMEs must mull over succession planning

Succession planning is something that all businesses should be thinking about. However, it’s the SME sector which is failing to prepare for the future as other priorities always seem to jostle to the front. Lining up the next generation of leaders to run an organisation can ensure that a company continues to thrive but many SMEs are failing to focus on this business critical issue.

Many SMEs point to the lack of financial resources to tackle non immediate concerns like succession planning, as well as the burden of extra work and the lack of a dedicated people management resource. In fact, the cost of losing someone in a key role is significantly magnified in a smaller company environment and managing this risk is a worthwhile exercise.

The latest Hays Journal explores the business risks and how an unexpected departure can take on a more significant impact the smaller the workforce.

You don’t need a large HR department to address the challenge of succession planning. One of the most critical responsibilities of any business leader is to pose and answer some basic questions to put the business in a better state of readiness.

They need to ask themselves, which roles are critical? What capability exists in them right now? Who are the potential successors? Whatever the business, succession planning can seem like an unnecessary and uncomfortable chore. However, avoiding these occasionally difficult decisions will only create greater risk as the company grows and matures. With that in mind, in many ways, the key to succession planning is just to start.

To access the Hays Journal please visit: www.hays-journal.com