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Change of leadership affecting company growth

May 10
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Change of leadership affecting company growth

by Adel Asim

A change of leadership can have a negative impact on a workforce and stunt the growth of a company, according to talent management consultancy group SHL.

The organisation found that one in five UK businesses said that an unexpected change in leadership had a detrimental affect on the company's performance and can also lead to a drop in morale of its employees.

However, out of the 258 UK-based HR officials surveyed by SHL, only 32 per cent said that they had a chief executive succession system in place should their current top boss move from their position.

With companies such as KPMG and Ernst & Young announcing a number of senior moves it is more important than ever that companies have a back-up plan in place.

Melanie Long, senior managing consultant at SHL, said: "Whilst it's encouraging to see that HR leaders are recognising the importance of succession planning across the organisation, our research also suggests that in doing so they have taken their eye off the ball with chief executive succession."

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