According to new Robert Half research, succession plans and concerns are top of mind for many Canadian businesses. More than 4 in 10 company leaders (43%) have not identified someone to take over their role when they decide to move on.
“To stay competitive, businesses must address tomorrow’s workforce concerns today. Foremost among those issues is identifying a company’s future leaders and preparing them to take the reins when executives and senior managers change jobs or retire,” said the report.
“Succession planning is easy to put aside while striving to keep business initiatives on track. But when a key executive or top performer departs — taking years of institutional knowledge with them and forcing the company to find a suitable replacement — projects can go awry, morale can suffer, and investors can lose faith in the company. Having plans in place helps minimize disruptions and reputational risks.”
These are the biggest risks leaders face from not having succession plans in place:
- Lack of strategic clarity: 41%
- Lower quality of products/services: 41%
- Failure to support business needs: 39%
- Loss of institutional knowledge: 35%
The management levels where company leaders said they lack succession plans:
- C-Suite: 56%
- Executive: 54%
- Director: 34%
- Manager: 46%
Those who are proactively building up their pool of pre-evaluated candidates do so by:
- Working with talent solutions firms: 39%
- Offering referral bonuses: 35%
- Providing mentorship programs: 34%
- Offering paid internships: 34%
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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