Succession planning is a critical process for ensuring the long-term success of any organization. It is the job of HR to work with their boards of directors in order to create and maintain a proper succession plan. A succession planning template is a great place to start.
Unfortunately, many organizations don’t feel they have enough high-potential successors to replace employees in key positions — and high-potential employees are viable to an organization’s success in the long term. “High potentials consistently and significantly outperform their peer groups in a variety of settings and circumstances,” is how Harvard Business Review defines high-potential employees. In fact, research asserts that high-potential employees are 91% more valuable than their non-high-potential counterparts. This extremely valuable employee group will grow into the future leaders, executives, and contributors of your organization. The obstacle, however, is that high-potential employees do not have a big red arrow pointing to them and indicating that they may be your future leaders.
Many large businesses and enterprises typically plan for the foreseeable future to avoid any stoppages and interruptions in business operations. As a result, they tend to have contingencies to ensure operations run smoothly. Despite that, most large companies still struggle with succession plans, often ending up rushing them or undermining them.
Every company has a different approach to succession planning. However, they’re often faced with the same problems. A lack of insights into the skills of employees, existing biases, and the absence of transparency often leads to poor succession planning and talent pool scarcity.
Companies are competing for talent at a higher rate than ever before, and an internal candidate hiring system can help combat talent shortages. There are a number of advantages of choosing an internal candidate over an external candidate.
Due to hiring freezes, a large number of companies have been abruptly limited to their existing talent pools to staff projects and fill skill gaps. However, we don’t think that should scare you. Instead, if you focus your energy on the optimizing your existing workforce, you can overcome these obstacles and set yourself up for success in the long-run.
Succession planning and career pathing are often thought as two separate processes that serve different purposes. However, when aligned, both employees and the company can benefit from the goals of each. View this infographic to learn How Succession Planning and Career Pathing Work Together.
Finding the right talent to fill business critical roles is becoming more difficult across all industries as unemployment rates hit record lows. To meet future skills needs, organizations are focusing on developing their internal talent through succession planning.
The absence of an effective succession plan in your business can have unforeseen consequences. Here are some of the common mistakes organizations make in succession planning.
Career pathing and succession planning are common terminologies within talent management but the difference in their application and the separate benefits of each can be misunderstood and overlooked. In the majority of cases, employers prioritize succession planning, assuming that career pathing will somehow ‘fit’ naturally into it.
But high performing organizations require both.
Earlier this year Apple CEO Tim Cook stressed the importance of succession planning as a priority for his organization. In the face of an unprecedented skills crisis, employers must follow his lead to thrive.