Nearly half of UAE Finance Directors admit to having no successor in place, says Robert Half.
More than 4-in-10 UAE finance directors cite ‘lack of existing internal talent’ as the primary reason.
Robert Half offers employers three tips for efficient succession planning within the workplace.
Nearly half (45%) of UAE finance directors admit to having no succession plan in place, in the event they choose to leave their current role, according to new researchfrom leading recruitment specialist Robert Half UAE.
Succession planning strategies are vital for ensuring organisations maintain a supply of well-prepared senior executives. Companies that fail to implement a succession strategy are left with the time-consuming and expensive exercise when someone vacates a critical role in the organisation.
The research reveals that more than 4-in-10 (41%) of UK finance directors cite ‘lack of existing internal talent’ as the primary reason preventing them from identifying a successor, though this figures rises to more than half (56%) for Dubai-based companies, compared to 28 percent in Abu Dhabi. One-in-five cite ‘lack of time to develop and mentor’ as the primary factor, followed by ‘lack of time to identify their successor’ (15%), ‘lack of exposure to senior-level initiatives for employees’ (15%) and ‘lack of professional development opportunities for employees’ (6%).
When asked how they would foresee a successor being identified for their role, finance directors said local internal promotion (32%), external permanent hire (29%) and international transfer (26%) as the primary recruitment channels.
James Sayer; “Succession planning is essential in any organisation, but particularly for finance leaders who play a critical role in providing sound financial management and strategic guidance. Failure to choose a successor, or at least developing a pool to choose from can put the future continuity and performance of the business at risk.
It’s a common misperception that succession planning is only for large companies. However, it is essential that businesses of all sizes prepare selected employees to later assume specific senior roles in the firm. In addition to implementing formal succession plans, employers should look at ways to help manage the process further, including offering managers with executive potential more training and development as well as exposure to key initiatives within the firm.” — James Sayer, Director, Robert Half UAE
When 75 UAE Finance Directors were asked; ’What primary factor is preventing you from identifying a successor?‘ these were there responses:
|Lack of existing internal talent||41%|
|Lack of time to develop and mentor||21%|
Lack of time to identify
|Lack of exposure to senior-level initiatives for employees||15%|
|Lack of professional development opportunities for employees||6%|
Robert Half’s three tips for efficient succession planning:
Take both a linear and holistic approach
Determine which positions must never be left vacant in the firm starting at the top of your organisation: identify managers who have executive potential and offer them training and development opportunities. In the meantime, groom potential successors for these employees’ roles. Apply this strategy throughout the organisation, as deep into the business as necessary to ensure operations won’t be seriously disrupted in the event that one or more employees leave.
Look for talent throughout the firm
Keep in mind that the best future leaders may not always be the people next in line for promotion. This assumption is a common mistake many employers make that can result in talented workers leaving the firm because they perceive a lack of advancement opportunities.
Make succession planning part of your culture
Because it can take time — potentially, years — to help talented staff members develop into confident and well-prepared business leaders, it can be difficult to treat the succession planning process with the ongoing sense of urgency it requires. The effectiveness of a succession planning programme depends largely on active and visible support by top management. Their engagement sends a powerful message throughout the organisation that such efforts are essential to the firm’s long-term vitality.