87% of businesses in Taiwan face challenges with succession planning
TAIPEI, TAIWAN - Media OutReach Newswire - 29 November 2024 - Global talent solutions provider Robert Walters Taiwan released a report exploring the state of succession planning in Taiwan. The report, titled "Success in succession: Building a leadership pipeline to keep your business thriving", includes a survey of 253 organisations in Taiwan, which found that 87% of businesses face challenges with succession planning.
Moreover, 54% of respondents claim that their organisations do not have a succession plan in place. Many companies that do have a plan (43%) also feel their existing strategy could be more effective.
Taiwan's workforce is getting older and smaller
According to the National Development Council, Taiwan is set to transition into a "super-aged society" in 2025, where over 20% of the population is aged 65 years or older. The talent pool is shrinking as more experienced employees leave the workforce, which has significant implications for businesses' succession planning efforts. While 39% of businesses surveyed by Robert Walters Taiwan were worried about replacing these senior, retiring talent, over half pointed to other more urgent concerns: the increased risk of losing critical skills and experience within the organisation (57%), and difficulties facilitating knowledge transfer and skills development for younger employees (55%).
John Winter, Country Manager of Robert Walters Taiwan points out, "An age-diverse workforce is more than inclusive—it's a catalyst for innovation, resilience, and market relevance in today's dynamic business landscape."
Cultural challenges in Taiwan
Besides an ageing workforce, the survey reveals a range of other factors keep businesses from implementing effective succession planning. For most respondents, the primary barrier remains the senior talent shortage (49%), followed by cultural factors, particularly corporate management practices and traditions (33%).
Successful businesses are driven by exceptional leaders who inspire, innovate, and steer their teams toward sustained growth and progress. To cultivate a resilient leadership pipeline, organisations should prioritise developing key traits within their teams, including strategic thinking, effective decision-making, adaptability, and strong communication skills.
However, businesses in Taiwan face unique cultural challenges. According to the survey, values like maintaining harmony within organisations (66%), reluctance to challenge authority (58%), a deep-rooted adherence to Confucian principles (39%), and a strong family influence on business decisions (39%) all influence how leaders are identified, nurtured and promoted.
Sharon Chen, Associate Director of Robert Walters Taiwan comments, "Leadership transitions are pivotal in shaping a company's future direction. In Taiwan, managing this process requires balancing traditional cultural hierarchies with organisational needs. Through open dialogue and a structured approach, companies can craft an effective succession plan and build a resilient leadership pipeline."
Overcoming Barriers to Succession Planning in Taiwan
The scarcity of qualified talent, coupled with the rigid structures of many Taiwanese companies, creates significant obstacles to effective succession planning. Larger organisations often face the additional challenge of navigating intricate hierarchies, while specific talent needs vary by industry, adding further complexity.
John Winter – Country Manager, Robert Walters Taiwan says, "Effective succession planning is more than just filling positions – it's about future-proofing your organisation. By aligning your strategy with the evolving business landscape and encouraging a culture of openness and continuous development, companies nurture leaders that are ready to meet tomorrow's challenges."
The report also provides guidance for businesses looking to put together, maintain, and assess the effectiveness of their succession plan through a variety steps, as outlined below:
- 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
For more information on Robert Walters in Taiwan, please visit www.robertwalters.com.tw.
Hashtag: #RobertWalters
https://www.robertwalters.com.tw/
https://www.linkedin.com/company/165757/admin/dashboard/
The issuer is solely responsible for the content of this announcement.
Robert Walters
Robert Walters is the world's most trusted talent solutions business. Across the globe, we deliver recruitment, recruitment process outsourcing and advisory services for businesses of all shapes and sizes, opening doors for people with diverse skills, ambitions, and backgrounds. We help organisations find the skills and solutions to reach their goals and assist talented professionals to power their unique potential.
