The executive search firm's latest findings reveal a significant gap between recognising the importance of succession planning and actually implementing it.
While 39% of organisations say succession planning is embedded within their business strategy and regularly reviewed, the majority, 61%, have yet to establish a comprehensive approach.
Perhaps most concerning is 22% of businesses surveyed admitted succession planning isn't part of their strategy at all.
The findings come at a time when organisations across multiple sectors are facing increasing challenges in recruiting and retaining experienced leaders.
As senior roles become more specialised and the competition for talent intensifies, businesses without a clear leadership pipeline could find themselves exposed to serious operational risks.
A sudden departure, retirement or career move involving a key executive can create significant disruption.
Leadership vacancies often lead to delays in decision-making, loss of institutional knowledge and uncertainty among employees, customers and stakeholders. For project-driven industries and highly specialised sectors, these disruptions can have a direct impact on growth, profitability and business continuity.
According to Newman Stewart, the problem is being compounded by ongoing skills shortages and a shrinking pool of experienced senior candidates. Without a structured succession strategy, businesses are often forced into reactive recruitment processes that can be costly, time-consuming and less effective.
John Tilbrook, Managing Director of Newman Stewart, believes many organisations understand the need for succession planning but are failing to make it an active part of their long-term strategy.
He explains while awareness of leadership planning has increased, far fewer companies have embedded succession planning into their day-to-day workforce strategy. As a result, many organisations remain unprepared when leadership changes occur.
Tilbrook argues that succession planning should not be treated as an occasional exercise but as a core component of strategic workforce planning. Identifying, developing and retaining future leaders before vacancies arise can help businesses maintain stability, protect valuable expertise and support sustainable growth.
The research serves as a timely reminder that succession planning is about more than preparing for retirement. In an increasingly competitive and unpredictable business environment, having a clear leadership pipeline may prove to be one of the most important safeguards against operational disruption.
For businesses looking to strengthen resilience and support long-term growth, succession planning is no longer a luxury – it is becoming a necessity.
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