With the retirement of the baby boomers and high talent turnover, leadership continuity is at risk in many organizations, especially those lacking solid succession plans while facing a shortage of senior profiles.
Only 19% of organizations report having an established succession plan, according to the latest study by global talent solutions firm Robert Walters. This figure suggests that many companies may be less prepared to face leadership changes than they think.
Lack of succession planning in family-owned businesses
The findings, part of the ‘Global Talent Trends 2026’ report, also reveal that 41% of organizations do not have any succession plan, and 7% of respondents are unsure whether one exists in their company. In Spain, this lack of foresight is even more pronounced among small and medium-sized enterprises and family-owned businesses, which make up the majority of the business fabric.
Andrés Jiménez, Business Director of Executive Search at Robert Walters, comments: “In SMEs, where managers often have personal (sometimes family) involvement, the absence of a succession plan combined with the lack of professionalization of the management team can jeopardize business continuity. Therefore, it is crucial to map out a strategy to ensure a smooth transition.”
Moreover, the cited study notes that 81% of business leaders acknowledge that their company is currently facing a shortage of senior talent, and more than half (53%) describe this shortage as significant.
According to Jiménez, “this data reflects a paradox: there are companies that need expert profiles, but then discard senior professionals for lack of tenure or overqualification. Ideally, they would leverage the latter part of their careers to mentor and guide the next generation of leaders.”
“In many companies, succession planning has historically been done informally. Yet they now operate in a much more complex environment: advances in AI, geopolitical uncertainty, and economic pressures are driving more frequent leadership transitions. With only one-fifth of companies having a formal plan, many are exposing themselves to significant operational risks.”
Lack of Smooth Transitions in Generational Leadership
Whether planned or unexpected, the departure of a senior leader can have profound effects on the entire organization, directly influencing strategy, decision-making, and corporate culture. In fact, analyses cited by McKinsey indicate that when these transitions are managed properly, about 90% of teams achieve their objectives within three years.
Beyond formal plans, the report also notes significant challenges in developing future leaders. Nearly a quarter (24%) admit to having difficulty identifying and developing solid, viable successors within their company.
“Many organizations have genuinely capable people on their teams, but correctly identifying future leaders and providing them with the right development opportunities requires a great deal of effort. Essentially, a succession plan is about preparing the organization for the future: building a robust pipeline that combines internal promotions and external hires to ensure that companies have the long-term resilience they need,” concludes Jiménez.
