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Fims face succession planning blind spot
Latest research from international recruitment firm Robert Half reveals nearly 60% of UK businesses are not taking sufficient action to strengthen their succession plans, putting corporate stability and growth at risk, and leaving businesses vulnerable to market disruption.
According to its study “Towards the C-Suite 2035”, over the next ten years, 59% of C-suite and executive leaders worry about finding suitable leaders for their company, with 30% reporting that they plan to strengthen their succession planning activities, while 37% confirm they are actively creating a formal strategy to replace their leaders.
Despite the need to create a succession plan for the next generation of leaders, Robert Half’s research shows that many organizations are slow in developing a second layer of leadership to address the immediate skills gaps facing businesses as they begin boosting their digital and workforce transformation capability, alongside AI and data skills. Without these, businesses will be left struggling to push forward their innovation plans, or maintain any competitive edge.
“Today’s C-Suite has a responsibility to prepare for the future, and that includes ensuring the right people are being geared up to replace them. Leaders must ask forward-looking questions that reflect the evolving nature of work, for example, how will your leadership strategy adapt to technological innovation, generational shifts and geopolitical uncertainty?” says Dan O’Leary, Managing Director, Executive Search UK, Robert Half.
“Succession planning needs to go beyond simple role replacement to incorporate future-focused criteria like digital fluency, cross-functional agility and resilience. Organizations need to identify leadership potential earlier and more systematically, using robust data and performance insights to inform decisions. As we anticipate a C-Suite that is more diverse, decentralised, and shaped by roles like Chief AI Officer or Chief Purpose Officer, the succession process must also be more structured and proactive.”
A broader and more inclusive approach to sourcing future leaders is essential. “Internal development and career progression will always play a vital role in building the next generation of executives. However, external talent brings fresh perspectives and specialized expertise, especially as new roles emerge to tackle complex challenges,” comments O’Leary.
Looking at the research findings for Private Equity Investors, the sector shares similar challenges with 54% indicating concerns about their portfolio companies’ ability to find suitable C-suite professionals by 2035. Despite this, only a third (33%) plan to strengthen their succession strategies.
“Companies must take a realistic and holistic look at their succession plans and accept that change may be necessary,” says O’Leary. “Succession planning should be viewed as a continuous, strategic process, not a one-off event. Keeping it high on the boardroom agenda will enable organizations to evolve with confidence and avoid sudden leadership gaps that could disrupt growth.”