A recent report by Robert Walters Singapore reveals that 89% of businesses in Singapore find their current succession planning strategies ineffective, with 39% lacking a formal plan altogether. The report, titled “Success in succession: Building a leadership pipeline to keep your business thriving,” highlights the urgent need for companies to develop clearer and more effective succession plans.
The ageing workforce in Singapore is a significant factor, with projections indicating that by 2030, nearly one in four citizens will be aged 65 and above. This demographic shift is pressuring businesses to prepare for leadership transitions. The survey found that 25% of respondents struggle to find suitable replacements for retiring employees, whilst 36% are concerned about losing critical skills and experience.
Additionally, 54% of companies surveyed reported a lack of clarity in succession planning policies and procedures, making it challenging to prepare future leaders. Other obstacles include difficulty identifying high-potential employees (51%) and insufficient resources for training and development (33%).
Cultural factors also play a role, with 62% of respondents citing an emphasis on organisational harmony and 40% pointing to respect for hierarchy and seniority as barriers to effective succession planning. Kirsty Poltock, Country Manager of Robert Walters Singapore, emphasised the importance of succession planning, stating, “In Singapore’s fast-paced and globally connected economy, succession planning is more than just a strategic initiative, it’s a business imperative.”
The report offers guidance for businesses to improve their succession planning, including establishing key positions, selecting high-potential employees, and regularly reviewing and communicating the plan. These steps aim to build a resilient leadership pipeline, ensuring continuity and growth in a competitive landscape.
