Home / Industry / Only 38% firms have leadership succession plan in place: EY

New Delhi: Filling vacancies at the top is a significant challenge for the most of the companies and yet just 38% of the firms seem to have a well-established leadership succession talent plan in place, says an EY report.

While, around 32% of respondents plan to have a leadership succession talent process in place in the next one year, 13% do not have any such plan at all, the report, ‘Talent trends in India, 2015’, said.

“Only 38% of the companies surveyed have a well-established leadership succession talent process in place," it said. The findings assume significance as filling vacancies at the top brass is a “significant challenge" for most companies. According to the report, around 14% of top management vacancies remain open for more than six months, while 75% take longer than two months to fill.

On the contrary, three-fourths of all junior-and middle-level vacancies are filled within two months. This includes sales and related roles, as well as in operations. Interestingly, there is a very low turnover at the top and senior management levels, which indicates that organisations are better at retaining employees at leadership levels than at junior and mid-level ones.

As per the survey, there is a high annual turnover of employees working in customer-facing roles, followed by internal production/operation areas. On talent sourcing, the report said that 60% of the employers surveyed plan to source talent via social networks, with 42% are targeting recruitment from tier II and III cities.

Social networks such as LinkedIn, Facebook and Twitter have emerged as the main non-conventional methods of sourcing. While, tier II and tier III cities, given their unique combination of low-cost and scalable talent pool have emerged as the second most popular non-conventional destinations for sourcing, the report said.

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