Many businesses are putting their future performance at risk by failing to make adequate plans for when their financial director leaves, according to research from recruitment specialists Robert Half UK.

The firm's survey of 200 UK finance directors found that more than half (55%) have no succession plan in place in the event they choose to leave their current role.

Nearly four in 10 (39%) of respondents cite 'lack of existing internal talent' as the primary reason for this, with the figures rising to more than half (55%) for publicly listed companies. One in four name 'lack of time to develop and mentor' as the primary factor, followed by 'lack of time to identify their successor' (15%), 'lack of exposure to senior-level initiatives for employees' (12%) and 'lack of professional development opportunities for employees' (8%).

When asked how they would foresee a successor being identified for their role, finance directors said external permanent hire (40%), local internal promotion (26%), international transfer/internal promotion (23%) and interim professional until permanent hire is selected (11%).

Phil Sheridan, managing director, Robert Half UK said: 'With a raft of high profile senior resignations over the past year, it is surprising to see such a large proportion of financial directors without a chosen successor, or indeed the pool to choose from. As a result, the future continuity and performance of those businesses is at risk.'

The survey suggests finance directors in the Midlands are the least prepared for succession planning, with an average 60% who have not identified a successor, followed by 58% in London and the South East, 56% in the South West and Wales and 46% in the North and Scotland.

Sheridan said: 'It's a common misperception that succession planning is only for large companies. However, it is essential that businesses of all sizes prepare selected employees to later assume specific senior roles in the firm.'