How can employers build an effective succession planning process?
The majority of employers in Singapore are facing challenges with succession planning in the wake of demographic, structural, and cultural challenges in the workplace, according to a new report.
Robert Walters' latest poll among over 100 Singapore-based businesses in May looked into the state of succession planning in the country, finding that many are facing multiple challenges with the process.
Some 73% of firms said they are facing challenges with succession planning, while another 39% said they do not have one in place.
Among the top factors behind Singapore's succession planning challenges is the country's ageing workforce, where nearly a quarter of its citizens are estimated to be aged 65 and above by 2030.
One in four of Robert Walters respondents said finding suitable replacements for retiring employees is affecting their succession planning, with another 17% reporting difficulties in transferring knowledge and expertise to younger staff.
Succession planning challenges are also rooted in the lack of clarity on the policies and procedures around the process, according to the report.
More than half of the respondents said it was difficult to prepare leaders internally because of the lack of clarity (54%) and the challenges in identifying high-potential employees (51%).
Cultural factors are also holding back succession planning processes in Singapore. According to the report, there is a lot of emphasis on harmony and respect for hierarchy in Singaporean workplaces that hold back succession planning.
What can HR leaders do?
Kirsty Poltock, country manager of Robert Walters Singapore, stressed that succession planning is a "business imperative" for a country that's fast-paced and with a globally connected economy.
To ensure the effectiveness of succession planning, the report outlined a guidance that employers can follow:
- Establish key positions and business objectives
- Select high potential employees
- Evaluate employees' readiness to advance into key positions
- Plan for employees' individual development and retention
- Identify positions without successors and plan for positions that cannot be filled internally
- Review and communicate the plan regularly
"By identifying and developing future leaders today, organisations can ensure continuity, foster innovation, and remain resilient in the face of rapid change," Poltock said.
"Strong leadership pipelines are key to sustaining success and driving growth in this competitive landscape."
