Corporate Executive Board Study Suggests Businesses Should Place
Greater Emphasis on Leadership Succession Planning in Light of Pending
Employee Shake Up
ARLINGTON, Va., Jun 01, 2010 (BUSINESS WIRE) --The Corporate Executive Board (CEB) (NASDAQ: EXBD), a leading research
and advisory services company, today announced that the business world's
rising stars are increasingly disengaged and actively seeking new
employment opportunities. The findings are the result of a recent
employee engagement study revealing that 25 percent of
employer-identified, high-potential employees plan to leave their
current companies within the year, as compared to only 10 percent in
2006. The study, conducted by CEB's Corporate Leadership Council, also
revealed that 21 percent of employees today identify themselves as
"highly disengaged." This group has increased nearly three-fold since
2007. Based on its findings, CEB believes that businesses must place
greater emphasis and urgency around leadership succession planning to
ensure future success and preserve the bottom line.
"Organizations are at a real risk of losing their most talented
employees as disengagement levels increase, the economy recovers, and
the labor market warms up," said Conrad Schmidt, executive director and
chief research officer of CEB's Corporate Leadership Council. "It is
paramount that companies act now, not only to re-engage and retain high
potential employees, but to re-evaluate and shore up their succession
plans and preserve leadership development within their organizations."
CEB's ongoing employee engagement research, which included a recent
survey of 20,000 high-potential employees in more than 100 organizations
worldwide, also reveals that nearly 40 percent of internal job moves
made by people identified as high-potential employees end in failure.
These compelling findings suggest an urgent need for companies to retool
their talent management programs to ensure the successful development
and retention of high-potential employees during the economic recovery.
CEB's Corporate Leadership Council identified six tips companies can use
to identify, re-engage, and more effectively manage high potential
- Stimulate. Emerging leaders need stimulating work, recognition,
and the chance to grow. If not, they can quickly become disengaged.
- Test. Explicitly test candidates for ability, engagement, and
aspiration to make sure they're able to handle the tougher roles as
their careers progress.
- Manage. Having line managers oversee high-potential employees
only limits their access to opportunities and encourages hoarding of
talent. Instead, manage these high-potential employees at the
- Challenge. High-potential employees need to be in positions
where new capabilities can - or must - be acquired.
- Recognize. High-potential employees will be more engaged if
they are recognized through pay, so offer them differentiated
compensation and recognition.
- Engage. Incorporate high-potential employees into strategic
planning. Share future strategies with them and emphasize their role
in making them come to fruition.
The high-potential employee survey was part of a larger CEB survey that
surveyed 50,000 employees on how they viewed their employers, how they
were managed, and how they reacted to changes in the economy.
High-potential employees were identified among a list of invited
organizational participants by their respective employers.
For more information about CEB's high-potential employee research, visit www.executiveboard.com/humancapital.
About The Corporate Executive Board
The Corporate Executive Board Company drives faster, more effective
decision-making among the world's leading executives and business
professionals. As the premier, network-based knowledge resource, it
provides them with the authoritative and timely guidance needed to excel
in their roles, take decisive action and improve company performance.
Powered by a member network that spans over 50 countries and represents
more than 85% of Fortune 500, The Corporate Executive Board offers the
unique research insights along with an integrated suite of members-only
tools and resources that enable the world's most successful
organizations to deliver superior business outcomes. For more
information, visit www.exbd.com.
SOURCE: The Corporate Executive Board
Corporate Executive Board
Joni Renick, 571-303-4074