Businesses admit to lacking a succession plan

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OVER two thirds of small and medium-sized businesses in the south east have no succession plans, according to statistics.

Figures from the Aldermore Future Attitudes report reveal that 67% have no clear action plan in place for when key staff leave the company.

When asked about succession plans, less than one in ten (8%) of these SMEs surveyed felt they could survive without one – on the basis that none of their staff members were indispensable or would be difficult to replace.

Carl D’Ammassa from Aldermore explained: ‘It is concerning to read that the majority of SMEs in the south east do not actually have any succession plans in place despite being conscious of the adverse consequences that may result should crucial employees leave the business.

‘Good employees can be difficult to find, so for these 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.’