Succession Planning: Global Challenge for Businesses
Succession planning is proving to be a significant hurdle for businesses worldwide, with over half of firms citing unclear policies and procedures as a major obstacle. In Vietnam, 87% of companies face challenges in this area, echoing global trends.
A lack of interest among younger generations in pursuing leadership roles is another prominent issue, with 22% of organisations reporting this concern. Transferring knowledge and expertise from older employees to their younger counterparts also poses a challenge, with 37% of organisations struggling with this task.
Shortages of qualified talent (59%) and insufficient resources for training and leadership development (53%) are further barriers to effective succession planning. Rigid organisational structures (55%) also complicate the process. Notably, 44% of businesses lack a succession plan altogether, and more than one in five rate their strategies as ineffective. Additionally, 16% of organisations find it difficult to find suitable replacements for retiring employees.
These findings highlight the need for businesses to address succession planning more effectively. Clarifying internal policies and procedures, fostering interest in leadership roles among younger generations, and investing in training and development are key steps organisations can take to improve their succession planning efforts.
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