Workplace Succession Planning

 

 

Succession planning in the workplace is a hot topic these days.  However, as pressing as it is, it is going to be a much hotter potato in the next five years.  It doesn’t matter what size your company or organization is, I guarantee you that you will feel the impact of having a good plan in place or not having one in place. 

 

Even if succession planning isn’t your responsibility, you still have a stake in this.  You know, and I know, that your work day is made more or less enjoyable by the quality and competence of the people with whom you work and manage.  So, if your organization doesn’t “do” succession planning, it may be time to get it on the agenda.

 

There are a couple of different ways to approach succession planning.  One is to have it forced upon you through unexpected turnover and a reaction strategy.  The other is look at all the key positions and players, anticipate a reasonable level of turnover and have a plan at the ready. 

 

How much turnover you anticipate, and from whom, will be a factor of the health of your organizational climate and your employees’ demographic profile.  In other words, how happy, engaged and committed your employees are and the average age of your workforce.  Obviously, all companies will face some unexpected turnover.  In fact, a small measure of turnover is generally a good thing and we can’t control it all.

 

Needless to say, hundreds of thousands of the 55+ age group will be vacating their jobs in the next 5-10 years.  In some organizations, this age group represents a significant portion of the workforce.  Employers with a younger workforce won’t lose their good people to retirement, but they will lose some of them to competitors who are doubling their recruitment efforts.

 

What does workplace succession planning entail?

 

For a very small company, it will be a fairly straightforward and unsophisticated process involving assessing natural skills and talents of people on the team and deciding who among them needs to be groomed for which positions.

 

Once your workforce reaches a few hundred employees, it may be time to consider utilizing some software technology to develop and manage the plan.  A good succession planning process will not only be information rich, but will easily track and keep current ever-changing information as training and development efforts take hold.
 
Regardless of whether a succession plan involves one person or hundreds, start the process by utilizing valid and reliable assessment tools.  This step will ensure that you are truly selecting people based on best-fit matches.  Considering and measuring individual values and interests is a critical factor for analysis during this step.

 

Once you’ve clarified the essential outputs required of each job and the associated behaviours, values and skills needed for optimal performance in each job, then it’s just a matter of measuring and analyzing your talent mix and identifying the job-talent matches. 

 

Now you’re ready to put in place individual development plans for each person that has been tagged as a high potential employee.  Following these steps well in advance of the need will ensure you don’t fall victim to a knee-jerk reaction to succession planning.

 

While there are costs involved, the costs are less than the alternative.  Research from consulting firm Aberdeen Group shows a strong correlation between management and executive level retention and companies with formalized succession programs.  Most companies with formal retention and succession programs also show a lower cost per new hire and a lower cost of separation per employee.

When best-in-class, average and laggard companies are compared, best-in-class companies are more likely to have formal succession programs. 

 

Another key strategy in implementing and managing a succession program is to define and articulate the process to all employees – including potential job candidates.  Job candidates are more likely to decide in favour of your offer, and existing employees more likely to stay, if they clearly understand their opportunities for growth and development within your organization. 

 

With the high cost of turnover that is soon to become considerably higher, start your planning now.  Succession planning is a great long-term retention tool.  Done well, your ROI will outweigh your costs and leap-frog you ahead of your competition.