Most business owners would agree that it is becoming increasingly difficult to attract and retain good staff. There is increased reporting on the skills shortage in various industries and there are no signs that this is going to change. So how important are key staff to your firm?
Many firms would suggest that a lack of suitably qualified, motivated staff is a major issue restricting the growth and security of their business.
This has several significant adverse implications. If not managed, it will adversely affect your business, your lifestyle and consequently your exit from the business. These implications include:
- Difficulty in attracting new staff
- Retaining existing staff
- An increase in labour costs
- Less stability in the workforce
- Increased stress for the business owner
- Commercial opportunities are foregone (and end up with the businesses who are better at staff recruitment/retention)
- Business owner spending more time on staff and less time on clients
Without good staff you are unable to grow your business and your business will remain owner reliant. Both of these issues will adversely affect the value of your business and hence the quality of your retirement lifestyle.
It is critical for every succession plan to include strategies for staff recruitment and retention. It is also vital that staff are committed to contributing to the objectives of the business.
Furthermore, if your business is reliant on you as the owner, it will restrict your succession options and adversely impact on your work load and lifestyle.
Staffing issues that need to be considered when strategising your succession plan:
- Effective use of Staff
- Future Ownership
Clearly, staff play a major role in your succession.
Firstly, they determine the value of your firm.
Secondly, they provide an excellent ‘pool’ from where your future successor may be sourced.
An effective Staff Incentive Program will focus your staff on growing the value of your firm, retain your staff and provides an excellent building block for your business succession.
Source: BStar Pty Ltd