Succession planning is susceptible to bias say 86% of HR leaders

• Over 33% of organisations are struggling to build a diverse leadership bench through succession planning
• 36% of HR leaders say their organisational boards are increasing pressure to diversify leadership
• Gut instinct over data: just 38% of HR leaders use data in hiring processes to reduce bias in succession planning
• Less than a third of HR leaders plan to actively attract candidates from disabled or lower socio-economic backgrounds

Nearly nine out of 10 talent leaders think their succession planning is biased, according to the latest research from talent insight experts Armstrong Craven.

The survey of 213 HR and talent professionals revealed that more than one in three say their organisation is struggling to build a diverse leadership bench through succession planning, with only 36% of respondents saying their organisational boards are increasing pressure to diversify leadership.

Rachel Davis, Co-Managing Director at Armstrong Craven, said:

“We believe bias is driven by a more traditional approach, often taken by senior executives who turn first to their existing networks. Even if they move beyond these networks, they tend to fish in traditional, often non-diverse, talent pools. HR leaders need to work with current and  next generation leaders to help them take a broader view, supporting strategic thinking by bringing in different perspectives. Building inclusivity is amongst the biggest business priorities, so it’s essential for organisations to get it right at the very top. Encouragingly, 85% of HR leaders have plans to actively attract or support leaders from underrepresented groups, so gaining a wider view and using external talent data will help them reduce bias in their succession planning.

“There are a number of ways to do this. Having an external succession plan opens up a new field of potential talent. Another potential is to set up a shadow board. This enables a business to better understand their internal talent as the group of (likely younger) non-executive employees work with senior execs. The business gains from their insights, not least on Environmental, Social and Governance (ESG) and Diversity, Equity and Inclusion (DE&I), yet it also provides the opportunity to learn about and develop potential internal talent faster.”

The Armstrong Craven research also highlighted an imbalanced approach to hiring from diverse talent pools – whilst nearly half (49%) of HR leaders have plans to actively attract ethnically diverse candidates for leadership positions, only 30% are doing the same for disabled candidates, and just 32% are planning to attract candidates from lower socio-economic backgrounds.

Peter Howarth, Co-Managing Director at Armstrong Craven, explained:

“That there are such differences in diversity hiring is not surprising, considering only 38% of HR leaders use data to reduce bias in succession planning. Succession planning can’t be based on a gut feeling or somebody’s opinion of who could be a good replacement; it needs to be based on data which requires an assessment of business needs to ensure relevant candidates are sought to fill the roles.

“When it comes to diversity in senior leadership*, since pre-COVID (2019) female representation amongst top senior managers has increased by nearly 5%, and ethnic minority representation has increased by 3%, but we are still talking about small numbers compared to the huge proportion of white males. We are not even skimming the surface of the neurodiverse and gender diverse talent pools.”

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*Green Park 2021 https://www.green-park.co.uk/insights/?gppc_category=Ethnic+Minority%7CWhite&gppc_level=Top+20&gppc_year_1=2021&gppc_year_2=2019

About Armstrong Craven

Armstrong Craven is a global leader in research-driven talent solutions.

Working with the world’s most influential and respected businesses undergoing transformational change, its industry-focused experts provide talent mapping, pipelining, executive search and talent insight services to help businesses ensure they attract, hire and retain the scarce and senior talent they need on a global basis.