Only one in five UK businesses has succession plan, research shows

Most UK organisations are unprepared for leadership change, with only a minority having a formal succession plan in place, according to new research from Robert Walters.

The study found that just 14% of organisations have a succession plan, while 39% have none and 8% are unsure whether one exists.

At the same time, 70% of leaders reported a shortage of senior talent, with 48% describing the gap as significant.

Daniel Harris, managing director at Robert Walters UK and Ireland, said: “There is a clear gap between how concerned organisations are about senior talent shortages and how prepared they are for leadership change.

“In many organisations, succession planning has historically been handled informally. But they are now operating in a far more complex environment than they were even a few years ago.

“Advances in artificial intelligence, geopolitical uncertainty and economic pressures are all contributing to more frequent leadership transitions.

“With only one in five businesses having an established succession plan, many are leaving themselves exposed to significant operational risk.”

The report highlighted the impact leadership changes can have on strategy, decision-making and organisational culture.