Importance of Succession Planning in Every Organization
Most recruiters and corporations are experiencing a “War on Talents” from all the challenges of successful employee retention and/or acquisition within the workplace.
There’s an old saying that explains the inherent benefits of succession planning: “If you fail to plan, you plan to fail”.
The look of a successful business
An organization can only be successful if they’ve got an awesome team and key players. What if the best talent quits without any notice? What are some of the possible consequences to the team and its effect to organization’s culture? The entire business could be adversely affected by internal power struggles and ensuing chaos, resulting in a business culture that suffers the negative emotional impact of drainage. Simultaneously while other employees are seeking ‘better’ (meaning outside) opportunities.
Nowadays most companies are aware that people, their employees, are their greatest asset. Each corporation must make sure that they have the right leaders in the right place at the right time. However, according to a Global SHRM Survey, executives worldwide believe that their two biggest challenges in 2020 are attracting the best people and retaining them through creative rewards, engagement, development opportunities (succession planning!), and involvement practices.
That’s where succession planning comes into play.
Succession planning as a key integral part
Succession planning is the process for identifying and developing employees to fill the responsibilities of future roles within the organization. Succession planning is a critical business continuity function. For this reason businesses must plan and implement carefully. In this manner, the company ensures all key roles within the company will be filled.
It is important to identify key roles and mapping out ways to ensure the organization has the right people with the right skills, capabilities, and experiences. Planning for the future position increases the availability of experienced and competent employees who are prepared to replace old leaders as they leave, retire, or die. Preparation for the employee to take over leadership involves a transfer to a specific department or job. On-the-job-shadowing gives an employee the opportunity to observe and learn about the position.
A few reasons why succession planning remains important in every organization:
- Helps identify future leaders which leads to higher employee retention and satisfaction
- Executive search and training are expensive
- Identifies and addresses competency gaps within a business
- Boosts performance ratings and enlivens company culture
- Keeps a company buoyant
In a very practical sense, let’ admit the fact that no one remains at the helm forever. Should succession management in every organization become successful, it will reduce the time needed to reach a company’s highest proficiency, limit hiring costs, and eliminate turnover resulting from a poor fit with your organizational culture.
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