Many UK SMBs don’t have a succession plan

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More than half (52 percent) of small and medium-sized businesses in the UK’s IT sector have no idea what they’d do if key staffers decide to quit. This is according to a new report by the Aldermore Future Attitudes, which claims these businesses are lacking a succession plan.

The report puts things in a dangerous perspective — 22 percent of SME IT businesses see senior executives leaving as their biggest business threat.

Another fifth, 21 percent, are worried their entire team would leave.

Out of those 48 percent that do have a succession plan, 46 percent have confirmed this includes “ensuring employees view their long-term future at the company and providing training to widen employees’ capabilities beyond their current roles.”

A third (36 percent) already know who might take over in case someone leaves the company.

“It is concerning to find that more than half of SMEs in the IT sector do not have any succession plans in place despite being conscious of the adverse consequences that may result should crucial employees leave the business,” comments Carl D’Ammassa, group managing director, Business Finance at Aldermore.

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“When faced with the day-to-day demands of running their company, business owners can easily push succession planning down their list of priorities. However, good employees are hard to find so for SMEs putting in place a strategy to deal with the departure of key individuals is imperative, particularly since the departure of a key employee has the potential to hit smaller firms with fewer employees hardest.”

Published under license from ITProPortal.com, a Future plc Publication. All rights reserved.

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