A research study conducted by Mercer, a global HR consulting firm, around 71 per cent of Indian companies say they have a succession plan in place for their top-tier leaders but only 27 per cent of these organisations have a satisfactory technology in place to executive this task. The study further states that for about 26 per cent of Indian companies’ insufficient funds for development is a key barrier to achieving goals.
Despite Indian companies increasingly pushing for leadership development, there is not enough accountability being attached to the process. Not many organisations are regularly conducting talent pipeline projections to plan for future leadership needs or measuring their progress in developing leaders. While 32 per cent of organizations in Asia-Pacific are spending more than $5,000 per person annually to train and develop their senior level leaders, only 25 per cent companies are doing so in India.
The study also points out that while companies across the Asian region continue to rely on expatriates for top leadership roles, in India these organisations have not tread the same path. In fact, top leadership roles in India are most likely to be held by locals unlike how it is in Asia-Pacific. Expatriates hold only 1-5 per cent of the top positions compared to 23 per cent for the region.
Source: The Economic Times