GHRF2008: Succession Planning for Global Companies
The effective execution of business strategies requires clear-cut directions for global succession planning and communications. In view of this, we will discuss the trends of leading global companies in global succession planning, their recruitment standards and development plans, the goals of their HR development systems, and specific cases from those global companies.
Duration : 1:18:33
An excellent summary – our experience in Australia is the same – In Australia SME’s have largely been defined based on their number of employees, for manufacturers less than 100 employees is classified as an SME and for service businesses less than 20 employees.[1] According to the Queensland Government, a Small to Medium Enterprise (SME) is defined as any legal entity with less than 500 Employees worldwide.[2]
There are approximately 2.01 million small to medium enterprises in Australia which are responsible for employing nearly 50 % of the Australian workforce.[3] SME’s make up 99.4% of all Australian businesses and account for about 60 % of the national economy. Approximately 90 % of Australian exporters are SME’s. Medium sized companies ( between 20 and 199 employees ) account for 41 % of total goods exporters.[4]Approximately two-thirds of all ASX listed companies are SMEs.[5] Australia’s medium business ( between 20 and 199 employees) contributes 23.6 % of national Gross Domestic Product.[6]
At June 2007, there were 641,538 (32%) Companies in Australia, followed by 620,037 (31%) Sole proprietors, 385,801 (19%) Partnerships and 364,075 (18%) Trusts. There were also a relatively small number of businesses (<1%) operating in the Public sector.[7]
Out of all private sector businesses in the period June 2006-07, entry rates were highest for Sole proprietors (22%) and Trusts (19%), followed by Companies (14%) and Partnerships (12%). Conversely, exit rates were highest for Sole proprietors (20%) and were noticeably lower across the other private sector categories. The business exit rate during 2006-07 was 14.6%, down from 14.9% in 2005-06. This exit rate was the lowest rate recorded over the four year period to June 2007.Across the past four financial years, both entry and exit rates have been relatively stable for all private sector categories.[8]
The exit rate and preferred exit options are a key issue, given that the value of Family Owned Businesses in Australia is approximately $1.6 Trillion and that the approach of the baby boomers bubble will dramatically increase the number of business owners approaching or at retirement age – all of whom are searching for an exit strategy to ensure the return on their equity in their businesses.
THIS ISSUE IS NOT ABOUT TO GO AWAY