June 6, 2011 SHRM Poll: Succession Planning. Succession Planning ©SHRM 2011 Key Findings 2  What percentage of organizations currently have succession.

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Presentation transcript:

June 6, 2011 SHRM Poll: Succession Planning

Succession Planning ©SHRM 2011 Key Findings 2  What percentage of organizations currently have succession plans in place? Less than a quarter (23%) of organizations currently have a formal succession plan in place, but more than one-third (38%) have informal succession plans. Larger organizations (2,500+ employees) are more likely to have a formal succession plan or process in place than smaller organizations (1 to 499 employees).  What are the most common job levels covered in succession plans? Approximately one-half of succession plans include president/CEO (49%), executives (54%), senior management (58%) and middle management (51%).  Are succession plans regularly evaluated or reviewed? Almost one-third (30%) of organizations evaluate or update their succession plans once a year.  Why have some organizations not developed a formal succession plan? Almost one-half (43%) of the respondents indicated that more immediate requests take precedence in the organization over developing a formal succession plan. Other organizations stated that they have not yet given consideration to succession plans (16%) or feel that their staff size is too small (15%).  Has there been any change in the number of organizations with an informal succession plan or process in place? The number of organizations who claim to have an informal succession plan or process in place has increased since 2006 from one quarter (26%) to more than a third (38%) in 2011.

Succession Planning ©SHRM 2011 Does your organization have a formal succession plan in place? (n = 385) 2011 (n = 426) Yes29%23% No, my organization has an informal succession plan or process 29%38% No, but my organization intends to develop a plan in the near future 26%22% No, and my organization has no intentions to develop a plan 16%17%

Succession Planning ©SHRM 2011 Does your organization have a formal succession plan in place? 4 Comparison by organization staff size Comparison by organization sector Small OrganizationsLarge Organizations Differences Based on Organization Staff Size 1 to 99 employees (12%) 100 to 499 employees ( 15%) 2,500 to 24,999 employees (38%) 25,000+ (58%) Larger organizations > smaller organizations Larger organizations (2,500 to 25,000+ employees) are more likely to have a formal succession plan or process in place compared with smaller organizations (1 to 499 employees). Differences Based on Organization Sector Publicly owned for-profit organizations (44%) Privately owned for-profit organizations (15%) and nonprofit organizations (22%) Publicly owned for-profit organizations> privately owned for-profit and nonprofit organizations Publicly owned for-profit organization are more likely to have an informal succession plan or process in place compared with privately owned for-profit and nonprofit.

Succession Planning ©SHRM 2011 Generally speaking, who is primarily responsible for selecting successors for positions? 5 Note: n = 213. Total does not equal 100% due to rounding.

Succession Planning ©SHRM 2011 Generally speaking, who is primarily responsible for approving successors for positions? 6 Note: 2011 total does not equal 100% due to rounding. “*” denotes the response was not available in 2006 survey.

Succession Planning ©SHRM 2011 Generally speaking, who is primarily responsible for leading the organization’s succession planning efforts? 7 Note:. “*” denotes the response was not available in 2006 survey.

Succession Planning ©SHRM 2011 Which of the following levels of employees does your organization’s succession plan include? 8 Note: Totals do not equal 100% due to multiple responses. “*” denotes the response was not available in 2006 survey. (n = 228) (n = 223)

Succession Planning ©SHRM 2011 How often does your organization evaluate or update its succession plan? 9 Note: “*” denotes the response was not available in 2006 survey. “**” denotes the response was not available in 2011 survey.

Succession Planning ©SHRM 2011 Does your organization’s succession plan incorporate methods that: 10 Note: Totals do not equal 100% due to multiple responses (n = 146) 2006 (n = 214) Develop potential leaders?80%52% Track potential leaders?75%61% Evaluate all employees annually on their leadership potential? 73%53%

Succession Planning ©SHRM 2011 HR department’s responsibilities in connection with the organization’s succession plan 11 Note: Totals do not equal 100% due to multiple responses.

Succession Planning ©SHRM 2011 Does your organization currently use software that is exclusively designed to manage the succession planning process? 12

Succession Planning ©SHRM 2011 What is the primary reason your organization has not developed a formal succession plan? 13 Note: “*” denotes the response was not available in 2006 survey.

Succession Planning ©SHRM 2011 Demographics: Organization Industry 14 n= 350 Industry Percentage Manufacturing 18% Health care and social assistance 13% Professional, scientific, and technical services 11% Educational services 8% Finance and insurance 8% Public administration 5% Accommodation; food services and drinking places 3% Arts, entertainment, and recreation 3% Information 3% Retail trade 3% Transportation and warehousing 3% Construction 2% Religious, grantmaking, civic, professional and similar organizations 2% Utilities 2% Wholesale trade 2% Administrative and support and waste management and remediation services 1% Agriculture, forestry, fishing and hunting 1% Management of companies and enterprises 1% Mining 1% Real estate and rental and leasing 1% Personal and laundry services 0% Private households 0% Repair and maintenance 0% Other services except public administration 9%

Succession Planning ©SHRM 2011 Demographics: Organization Sector 15 Note: n = 352. Total does not equal 100% due to rounding.

Succession Planning ©SHRM 2011 Demographics: Organization Staff Size 16 n = 353.

Succession Planning ©SHRM 2011 Demographics: Other 17 n = 349 n = 359 Note: n = 239. Total does not equal 100% due to rounding. n = % of organizations indicated that employees at their work location were unionized. n = 349

Succession Planning ©SHRM 2011 SHRM Poll: Succession Planning  Response rate = 16%  Sample composed of 426 randomly selected HR professionals from SHRM’S membership  Margin of error is +/- 4%  Survey fielded February 25 - March 4 th, Methodology For more poll findings, visit: Follow us on Twitter: