What Is Succession Planning?
Succession planning identifies which employees could be future leaders at a company. It helps your business to create a contingency plan in the scenario that an employee retires, resigns or becomes sick.
When an employee leaves the company, we are quick to look outside the company for a replacement. Yet, doing this may mean that we overlook some of our best-performing employees. Many times the best individual for the position is already in your team.
A succession plan determines which employees have the potential to take on leadership roles in the company. It also identifies skill gaps or training opportunities that employees need to become leaders.
Many leaders often choose a succession only method when planning for their company’s future. This is not the most ideal course of action. When paired with career pathing, it can help you design an effective contingency plan.
The Importance Of Having A Great Succession Plan In Place
Companies often fail to put an adequate succession plan in place. Recent studies found that only 14% of directors worldwide keep their succession planning up to date. Without a succession plan, you could be setting your company up for problems.
Succession planning is crucial for businesses. It should be a top priority for all leaders. Identifying and preparing an employee to take over a leadership position takes time. So, it is important not to ignore this part of the plan.
Even if you don’t expect a structural change any time soon, you should still be taking steps to mould future managers. Prepping promising leadership candidates creates an invaluable safety net for your business. Make sure that your company continues to be well-oiled machines when leadership changes.
Tips For Successful Succession Planning
Now the question is how to create a successful company succession plan. Leaders should work with HR professionals to plan out a clear succession path. Using the tips outlined below, this is possible for your business too.
Make The Path Clear
Be clear on which employees show potential for leadership positions. This allows you to know exactly which steps need to be taken next. It is important when evaluating potential employees to not only look at who is second in command. There could be other employees who are as deserving of a leadership position.
Succession planning that is mapped out clearly allows companies to identify skill gaps. While technical skills are important, candidates should have the interpersonal skills needed for leadership. Take this chance to include potential managers in strategy meetings and training opportunities. This will help to prepare them for the role.
Tap Into Career Pathing
Leaders must also take an employee’s personal career plans into account. This is where comes into play. Career pathing can help HR professionals and leaders identify an employee’s professional aspirations.
Career pathing will ensure that the career milestones of potential candidates align with your succession plan. It will also mean that it will be easier to transition these candidates into a leadership position.
Coaching The Talent Pool
All good leaders must prepare to coach and mentor the talent pool. Succession planning requires leaders to train future leaders. Offer mentoring relationships, job shadowing and training opportunities to these employees.
A succession plan will only work if you give top employees as many opportunities as possible to learn the requirements of the role. With the right coaching, a great leader can be made.
Practice Continuous Feedback
Continuous feedback is a great way to support high-performing talent as they transition into a more senior role. Valuable feedback helps employees to recognize their abilities and gives them the motivation to strive for leadership.
Keeping track of feedback is also beneficial as it gives you something to reference when any management position opens up. Make sure to practice continuous feedback regularly with your employees. This will improve employee performance and succession planning.
Building An Efficient Succession Plan For Your Company
An efficient succession plan will map the future of your company. Using career pathing methods, leaders can identify employees that have the competencies and ambition to move up in the organization. Leaders and HR professionals can avail of talent management solutions to help them build out their succession plan.