One-Third of Companies Lack Succession Plan
Thirty-one percent of companies with more than 1,000 employees say they have no succession plan program at their organization, according to a survey by CareerBuilder. In addition, 50% of senior management (CEO, CFO, Senior VP, etc.) and 52% of those in a vice president position say they do not have a successor for their current role.
A lack of succession planning can adversely affect an organization in a variety of ways, from the absence of strategic direction to decreased productivity to weakened financial performance. More than one-quarter (27%) of companies said they’ve been adversely affected financially by poor succession planning or lack of planning.
Employers cited the economic downturn as an obstacle to effective succession planning. More than one-quarter (28%) say that the economy has left gaps in their succession plans due to downsizing or workers leaving voluntarily.
As the economy gradually improves, it’s important for organizations to proactively plan for the future of their businesses, says CareerBuilder.
When asked what is lacking in their current succession planning program, companies replied:
- Not enough opportunities for employees to learn other role: 39%
- Process isn’t formalized38%
- Not enough investment in training and development33%
- Not actively involving employees or seeking their input31%
- Only focuses on top executive: 29%
Managers also reported that workers’ awareness of and input on their own succession planning is important. Forty-nine percent of employers said employees don’t set career paths with their managers with timelines and milestones.
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