The majority of businesses in Taiwan (87%) face challenges with succession planning, according to a report from Robert Walters Taiwan. It comes as 54% of businesses also claimed that their organisations do not have a succession plan in place.

Many companies that do have a plan (43%) also feel their existing strategy could be more effective.

According to the country’s National Development Council, Taiwan is set to transition into a ‘super-aged society’ in 2025, where over 20% of the population is aged 65 years or older. The talent pool is shrinking as more experienced employees leave the workforce, which has significant implications for businesses’ succession planning efforts, the research noted.

While 39% of businesses surveyed by Robert Walters Taiwan were worried about replacing these senior, retiring talent, over half pointed to other more urgent concerns: the increased risk of losing critical skills and experience within the organisation (57%) and difficulties facilitating knowledge transfer and skills development for younger employees (55%).

In addition to an ageing workforce, the survey highlights several barriers to effective succession planning. The biggest challenge, cited by 49% of respondents, is a shortage of senior talent, followed by cultural factors such as corporate management practices and traditions, which affect 33%

Furthermore, the survey showed values like maintaining harmony within organisations (66%), reluctance to challenge authority (58%), a deep-rooted adherence to Confucian principles (39%) (the Chinese philosophy), and a strong family influence on business decisions (39%) all influence how leaders are identified, nurtured and promoted.

John Winter, country manager of Robert Walters Taiwan, said in a press release, “Effective succession planning is more than just filling positions – it’s about future-proofing your organisation. By aligning your strategy with the evolving business landscape and encouraging a culture of openness and continuous development, companies nurture leaders that are ready to meet tomorrow’s challenges.”

Sharon Chen, associate director of Robert Walters Taiwan, said, “Leadership transitions are pivotal in shaping a company’s future direction. In Taiwan, managing this process requires balancing traditional cultural hierarchies with organisational needs. Through open dialogue and a structured approach, companies can craft an effective succession plan and build a resilient leadership pipeline.”