Who will be leading your organization in 5 years? 10 years? 20 years?
Many organizations have a general idea of who they think will be the CEO or president of their organization in the immediate future: the current CEO, a current VP, the owner’s son or daughter, etc. But what about who takes over the previous role of the new CEO, and who takes over that person’s old role, etcetera?
Most companies simply don’t have a definitive answer. In fact, a recent study conducted by Bersin by Deloitte found that fewer than one-third of organizations have a formal succession plan for all but the most senior of positions. That means that the overwhelming majority of organizations will be left floundering if a key, but not necessarily C-level, employee leaves the organization. And with 10,000 people in the US becoming eligible for retirement every day in this country, not to mention the movement away from long-term employment with a single employer, it’s only a matter of time before these companies face the challenge of having to scramble to replace an instrumental mid- to upper-level employee.
It’s not wonder, then, that across-the-board succession planning has become such a hot topic amongst HR professionals and managers. Companies are increasingly recognizing the importance of building a deep bench of talented professionals who are ready to step in to fill a position as needed, and succession planning is now a topic at the forefront of many business plans.
What is succession planning?
Before we delve any further into this topic, let’s take a moment to clarify what “succession planning” actually means. Succession planning is a management process that, when executed effectively, ensures that employees are properly and strategically recruited and trained to be able to step up and fill a key role within an organization when a position becomes available or a void is created.
So, when business owners or managers talk about “grooming” an employee to take on a particular job, they’re actually participating in a form of succession planning. However, succession planning isn’t just about focusing on a single employee or level of management – it’s a long-term planning process that involves analyzing current needs and anticipating future needs and then identifying individuals (either current employees or candidates) who possess the necessary skills and abilities to fill a particular role and then training and developing those employees to take on that role when necessary.
Tips for creating a succession plan
If a business is successful, odds are that it will live on well past the time its current leaders will retire. Creating a succession plan that transcends all levels of the organization will help managers identify who within the organization can step up to fill those roles as leaders and key employees leave the company and ensure a business’ continued and long-term success.
G&A Partners offers the human resources expertise needed to ensure your organization has the tools and resources to hire, train and retain employees with the skills and talent to contribute to your long-term success. Learn how G&A can help you build a more effective team that actively contributes to your bottom line by calling 866-634-6713 to speak with an expert or by visiting https://www.gnapartners.com/contact-us/ to schedule your free business consultation.