While managers are more worried than ever about losing skilled employees, few are preparing adequately for this kind of disruption, research suggests.

One in five managers say their organisation's productivity has suffered due to a loss of skills in the past 12 months, according to research by the Chartered Management Institute. While 59% are concerned about the impact loss of skills could have on their businesses.

The 2007 Business Continuity Management Survey, supported by the Cabinet Office and Continuity Forum, looked at how businesses are coping with, and planning for, disruptive events from IT problems to adverse weather conditions.

It found that while 73% believe business continuity is seen as important by their senior management team, just 48% have a continuity plan in place.

Inanimate objects, rather than people, were also seen as most important for continuity. IT was cited by 73%, followed by loss of telecommunications (63%) and loss of access to sites (60%). There were increasing levels of concern over ‘loss of people’ (57%) and skills (up to 59, from 49%, last year).

Jo Causon, director, marketing and corporate affairs, at the Chartered Management Institute, said: “Protecting an organisation’s infrastructure is, of course, vital to its sustainability. However, technology is nothing without the people who can use it and unless organisations balance the need to safeguard buildings with the need to secure their workforce, any attempt at business continuity management will remain unfinished and inadequate.”

The Institute said its research, conducted amongst 1,257 public and private sector managers, uncovered an alarming level of complacency amongst UK employers.

While half of those with a BCP report rehearse plans at least once a year, 37% do nothing with the plans that have been developed and 15% fail to act on the shortcomings they identify.