One in five senior executives can’t be replaced in less than a year, says IIC survey
7 March 2014
Eighty per cent of senior executives said that their company would not be able to replace them quickly if they left, according to a survey by international executive search firm IIC Partners.
Fri, 7 Mar 2013Eighty per cent of senior executives said that their company would not be able to replace them quickly if they left, according to a survey by international executive search firm IIC Partners.
The survey of 1,270 business leaders from around the world highlighted the importance of a succession plan, with 20% of those surveyed saying it would take the company at least a year to find their own replacement.
Although almost six in 10 respondents said their company had a succession plan in place, only one in five said their organisation would be able to replace them immediately if they were to leave.
“The findings of this survey point to a gap in succession planning at many companies,” says Paul Dinte, chairman of IIC Partners. “It is one thing to have a written succession plan, but quite another to be prepared for the departure of a C-level executive.”
Two-thirds of the survey respondents were C-suite executives.
Asked if there was a succession plan in place for their position, the senior-level executives responded as follows:
Not-for-profit firms were hardest hit when a senior executive left, followed by pharmaceutical companies and those in professional services.
Smaller organisations reported being the least affected by unforeseen departures, with 56% saying that they had no significant business impact. Family-owned businesses reported suffering the most, with 94% saying that there was a negative impact on their organization.
“Not surprisingly, family-owned businesses experienced the most pain from an unexpected executive departure, most likely because of the intertwined personal relationships involved,” Dinte notes.
The survey of 1,270 business leaders from around the world highlighted the importance of a succession plan, with 20% of those surveyed saying it would take the company at least a year to find their own replacement.
Although almost six in 10 respondents said their company had a succession plan in place, only one in five said their organisation would be able to replace them immediately if they were to leave.
“The findings of this survey point to a gap in succession planning at many companies,” says Paul Dinte, chairman of IIC Partners. “It is one thing to have a written succession plan, but quite another to be prepared for the departure of a C-level executive.”
Two-thirds of the survey respondents were C-suite executives.
Asked if there was a succession plan in place for their position, the senior-level executives responded as follows:
- 31% said their company had a succession plan and could replace them within 12 months
- 26% said their company had no succession plan and they did not speculate on how long it would take to replace them
- 20% said their company had a succession plan and could replace them immediately
- 16% said their company did not have a succession plan and it would take 1-3 years to replace them
- 4% said their company had no succession plan and it would take more than three years to replace them
Companies that reported being least ready to replace a senior executive were not-for-profits (40% said it would take up to a year to replace them) and family-owned businesses (37%).
Not-for-profit firms were hardest hit when a senior executive left, followed by pharmaceutical companies and those in professional services.
Smaller organisations reported being the least affected by unforeseen departures, with 56% saying that they had no significant business impact. Family-owned businesses reported suffering the most, with 94% saying that there was a negative impact on their organization.
“Not surprisingly, family-owned businesses experienced the most pain from an unexpected executive departure, most likely because of the intertwined personal relationships involved,” Dinte notes.
