Even as companies lay off workers in response to economic slowdowns, they still often search outside company ranks for candidates to fill open executive and management positions.

This can largely be traced to a lack of succession planning. When companies fail to identify, mentor and train employees to advance within the organization, the result is an inadequate internal talent pool for open positions. HR experts tell the Wall Street Journal that companies should admit they've “dropped the ball on talent development” and take steps to improve.

• 60 percent of companies have no succession plan of any kind, according to a survey by the Society of Human Resources Management
• Nearly half of 20,000 employees surveyed at 100 large global companies said they don't receive enough feedback from their managers to help them improve their performance.

HR professionals and managers should work together to create new learning opportunities for employees to develop the existing talent pool in their own workforce. Not only will this improve employee performance and increase employee loyalty, but it will also make it much easier for HR professionals to locate qualified professionals for advanced positions at their company— because they will have developed that talent within their own organizations.