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Succession planning is something that all businesses should be thinking about, according to Hays Japan, which warned that the SME sector is failing to prepare for the future as other priorities jostle to the front.
The recruiter said that 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. The recruiter said that 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.
“Succession planning in a smaller business may in fact be even more critical than in large businesses as the impact of a leaver could be significantly greater on the overall company. Equally, the ability to „cover‟ gaps in responsibilities and knowledge left behind maybe more challenging with a smaller resource pool to draw from. It does not necessarily need to be a complex process. It can be as simple as dedicating time to the issue, asking the right questions and then following through. One of the biggest mistakes would be to think that it will never happen,” said Hays.