92% of SMEs see setback in digital transformation plans amidst great resignation

SMEs said digital transformation is critical for them to survive the next 12 months.

About 92% of local small and medium enterprises (SMEs) have had setbacks in their digital transformation plans amidst work volatility in the country, data from a SAP study showed.

This raises red flags, as 85% of local SMEs also deem digital transformation as critical to their survival in the next 12 months and it was also ranked as the top priority for SMEs (41%).

“Digital transformation is a fundamental way SMEs not only build resilience but how they create agile, innovative paths to growth. But without the right people, any transformation will struggle. Investment in talent must match investment in innovation to ensure SMEs in APJ both survive – and thrive,” Paul Marriott, president of SAP Asia Pacific and Japan, said.

Based on the study’s data, 62% of SMEs have seen more employers resigning now than 12 months ago and this is mostly due to financial incentives (41%), wanting to pursue more personally fulfilling work (38%), changing career or job role (33%), perceived career progression (33%).

To deal with this great resignation, SMEs are banking on the talent and digital training, with 35% of them saying they provide upskilling opportunities for their employees, whilst others are allowing a flexing working arrangement (40%), and improving financial incentives (29%).

Despite having solutions, however, almost half of the businesses (49%) surveyed said they are having difficulties addressing the great resignation.

Marriot, for his part, assured companies that prioritising upskilling and career progression can put employees and SMEs in a win-win situation.

“Talent requires the right remuneration, flexibility, and a communicated progression journey,” he said.