Survey reveals poaching of key staff major worry

Small company bosses spend more time worrying about key staff being poached by rivals than any other issue, a risk-management survey has found.

Executives at listed companies, meanwhile, lose the most sleep over concerns their firm might break the law.

Undertaken by risk and insurance specialists Marsh, the survey quizzed senior executives from 152 companies.

Responses from public and private company bosses combined show increased competition is seen as the biggest risk to their businesses. Kirk Williams, Marsh general manager, attributes that to the nature of business.

Of more surprise, Williams said, is the broad concern about losing key staff.

"When you talk to individual businesses this doesn't seem to raise itself on the radar. But the survey shows consistent concern coming through," said Williams.

He suggested the tight labour market, with unemployment at an 18-year low, could be a contributing factor.

As for listed companies concerns over complying with legislation, Williams suggested smaller firms should also be vigilant. Especially over health and safety issues, environmental issues, tax and the Holidays Act.

"The penalties would potentially be proportionately more damaging for smaller firms than for the larger public companies," he said.

Other major concerns at public companies are the destruction of assets and loss of income resulting from a disaster.

Williams suggested high insurance premiums have helped focus executives attention on fires, floods and storms as they strive to minimise insurance costs.

Employers running privately owned firms also worry about keeping up with technology, falling demand and disruption caused by supply chain failure.