SAME OLD TUNE: SUCCESSION PLANNING STILL LAGS

Nearly one-third (31 percent) of companies with more than 1,000 employees said they don’t currently have a succession planning program at their organization. This was reported in a new Career Builders survey. 50 percent of senior management (CEO, CFO, Senior VP, etc.) and 52 percent of those in a vice president position said they do not have a successor for their current role.

Responses when asked what is lacking in their current succession planning program:

•     Not enough opportunities for employees to learn beyond their own roles – 39 percent
•     Process isn’t formalized – 38 percent
•     Not enough investment in training and development – 33 percent
•     Not actively involving employees or seeking their input – 31 percent
•     It only focuses on top executives – 29 percent

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 up career paths with their managers with timelines and milestones.

Still a top HR priority. Still little positive action.

The neglect of career planning is going to bite as the economy comes back to life and people have more options.  High potential personnel will be waving bye-bye for the places that promise an appealing career path at any age.

 

 

Comments

[Brannon Poe]

We see that lack of planning in our practice as well. It is nice to see these statistics. I believe succession planning gets avoided because people are emotional about facing the prospect of retirement. If businesses could plan just 2 or 3 years out, their exit strategies could be improved dramatically.

[Phyllis Weiss Haserot]

Thanks for our comment, Brannon. I agree. I think things would be even better if the transitioning planning period was 5 years and involved each client in the transition to younger professionals to keep the business secure.