It is not untypical in many small businesses for heavy reliance to be placed on one or more key persons. The sudden departure, whether temporary or permanent, of one of these people might render significant parts of the business partially or totally inoperably.
Whilst resources constraints might inhibit the hiring of staff that could then share the knowledge and expertise which certain key individuals possess, the risks of having all the business eggs in one basket could be catastrophic.
Some factors which might negate the risks associated with having an inproportionate level of skilled associated with certain individual might include some of the following:
Procedural Manuals
Well written manuals and instructions on carrying out certain important procedures, might help the business recover at a faster pace than if no reference material had been produced. These would be available to the business and a replacement employee in the event of a loss of key personnel.
Whilst it is generally untrue that all skills possessed by one person can be bought online simply by giving a manual to another individual, the use of such material can serve as a starting point to learning the intricacies of another’s job.
Taking Out Insurance
Keyman Insurance can be at the very least a consolation in event of losing a key member of staff.
It might also serve as a financial lifeboat for the business to engage one or more qualified specialists to take over the role whilst the business adapts to gap in skills and knowledge.
Programs of Staff Training
Staff training, whereby some of the important information relating to the business operations is disseminated amongst a wider population is a means of reducing reliance on a single employee member.
The form the training takes can be varied between formal sessions in-house or by external consultants to more informal job shadowing sessions.
The sharing of sensitive information which could potentially harm the business will need to be protected and alterative arrangements made for the transition of this privileged knowledge.
Alternative Staff
Having knowledge of where alternative staff might be found would be a useful element of planning for the potential loss of a key employee.
The list might include specialist recruitment agencies, advertising media suitable for finding the right kind of person and perhaps a list of competitor’s key personnel.
