The Key-Man Risk Headache for Small and Medium Businesses

In every organization, there are key staff that get things going in ways that move the business forward. They perform their duties expeditiously conform with work ethics and deliver as expected. Key staff are mostly on top, may be the CEO, another executive or a junior staff — sometimes. Key men are usually prominent in small and medium businesses, because of the number of staff, and the responsibilities on their shoulders — helping them learn much and quicken experience on the job. There are also key staff in big businesses, who are pivotal to business growth, but number of staff and bureaucracy however, makes other staff learn to do things they can and replace them effectively, when on leave or out. Key staff for small and medium businesses can be hell of headache, should anything lead to their exit from the organisation. The power they hold on the job; information, work history, better ways to handle responsibilities, and skill, makes them vital within the office or not — when they maybe are called on for some things. Key staff, sometimes also, may try to pass on their knowledge and skill to another staff, but if the staff doesn’t catch up within a period, they stay back and continue their work. Certain key staff however, may also hold back vital knowledge, protecting information and strategies of the organisation. Their role as key staff, ups their job security, making it certain that they can’t just be laid off. This confidence and the central role a key staff plays, can bring a business down, if they have to suddenly go.  This is a big problem for small and medium businesses, and it may take weeks for the organisation to get back, if they will. If the key staff is the CEO, and leaves the organization, for any reason, the organisation may never get back, but if it’s a staff, they will, but may take time. Reducing over-reliance on a key staff first, is about diversifying duties and roles, providing assistants, or colleagues that will know what the person does, and how to effectively do it. This, whenever the key staff goes on leave, will put the sit-in staff to test, presenting abilities and knowledge, then corrections when the key staff returns. The key staff should also realize how dependent the business is on his experience, and will have to abide by work ethics, not being a going lone wolf, and must be willing to teach others, when asked. If the key staff is the CEO, it makes it complicated, because of certain information — exclusive to him. Nonetheless some trusted staff can have those and be able to run the business, anytime the CEO is absent or leaves for any reason. Key staff risk can also be reduced by getting organised and quickening transition from a small to medium or from a medium to a big business. The transition will keep tasks specific to people, and make space for resources for those that will have to get trained to acquire such skills; business growth will also make space for hiring, especially for experienced folks, reducing reliance on one staff or a group of key staff. Key man risk will still be there, in small and medium businesses, and certain businesses will continue to take the preventable risk of not growing, or seeking a way to reduce dependence on that staff, and may cause them to fail. When things are going nice, with the loyal, skilled, and diligent key staff, it will be important for businesses to shed reliance from the key staff letting others know what he knows.