Nearly a third of US companies don't have succession plan: Survey
Many companies in the US have revealed that they do not have a formal succession plan in place and there are no immediate successors for most senior executives, according to a CareerBuilder survey.
By PTI |
NEW YORK: Many companies in the US have revealed that they do not have a formal succession plan in place and there are no immediate successors for most senior executives, according to a CareerBuilder survey.
About 31 per cent of the companies surveyed said they do not currently have a succession planning programme at their organisation.
Moreover, 50 per cent of senior management (CEO, CFO, Senior VP) and 52 per cent of personnel in a Vice-President position said they do not have a successor for their current role.
A lack of succession planning can adversely affect an organisation in a variety of ways, from the absence of strategic direction to decreased productivity to weakened financial performance, the survey noted.
"As the economy gradually improves, it's important for organisations to proactively plan for the future of their businesses," CareerBuilder Vice-President (Corporate Marketing and Sales Training) Jamie Womack said.
"Having a blueprint on who will succeed management at all levels is a critical facet to your overall strategy, as it ensures that your organisation will be able to tackle future challenges and compete in your industry," he added.
The survey found that 27 per cent of the respondents said they have been adversely affected financially by poor succession planning, or a lack thereof.
Interestingly, employers cited the recession as an obstacle to effective succession planning.
More than a quarter (28 per cent) of the firms surveyed said the recession has left gaps in their succession plans due to downsizing or workers leaving voluntarily.
When asked what was lacking in their current succession planning programme, the companies surveyed said they lack investment in training and development and they do not provide enough opportunities for employees to learn beyond their own roles.
In addition, the companies said the succession planning process is not formalised.
The survey was conducted online by Harris Interactive on behalf of CareerBuilder between February and March among more than 1,000 employers with 1,000 or more employees.
About 31 per cent of the companies surveyed said they do not currently have a succession planning programme at their organisation.
Moreover, 50 per cent of senior management (CEO, CFO, Senior VP) and 52 per cent of personnel in a Vice-President position said they do not have a successor for their current role.
A lack of succession planning can adversely affect an organisation in a variety of ways, from the absence of strategic direction to decreased productivity to weakened financial performance, the survey noted.
"As the economy gradually improves, it's important for organisations to proactively plan for the future of their businesses," CareerBuilder Vice-President (Corporate Marketing and Sales Training) Jamie Womack said.
"Having a blueprint on who will succeed management at all levels is a critical facet to your overall strategy, as it ensures that your organisation will be able to tackle future challenges and compete in your industry," he added.
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The survey found that 27 per cent of the respondents said they have been adversely affected financially by poor succession planning, or a lack thereof.
Interestingly, employers cited the recession as an obstacle to effective succession planning.
More than a quarter (28 per cent) of the firms surveyed said the recession has left gaps in their succession plans due to downsizing or workers leaving voluntarily.
When asked what was lacking in their current succession planning programme, the companies surveyed said they lack investment in training and development and they do not provide enough opportunities for employees to learn beyond their own roles.
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In addition, the companies said the succession planning process is not formalised.
The survey was conducted online by Harris Interactive on behalf of CareerBuilder between February and March among more than 1,000 employers with 1,000 or more employees.
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