Succession Planning

The current workforce landscape is a bit of a managerial challenge for most companies. If you belong to an organization with an uneven labour force, then maybe you can relate. Uneven labour force means that there might be too many people in managerial positions with relatively few people to train, or it could mean having too many new people to train but with ready-to-retire managers.

This situation can cause instability throughout the whole organization because it will affect performance and can lead to poor decision-making, resulting in delays and other ripple effects. With an even workforce landscape however, career transitions will be smoothe and plans to reach business goals will be more productive and targeted.

Here is where the importance of succession planning comes in.

What Is Succession Planning?

A business will not be as effective without its leaders to keep things moving towards the desired outcome.. Succession planning is a key organizational strategy for passing that leadership role to the next generation of employees. It is also commonly known as replacement planning, and its purpose is to keep the business running smoothly even when important people leave, retire, or pass away.

If you have plans to keep your business operating, whether you have a big or small company, succession planning can give you peace of mind. Having a plan will help you secure a better future for your company.

The Advantages of Having a Succession Plan

Here are some benefits that your company will fail to enjoy if you let the stars dictate your next steps:

– Internal Company Benefits

    • Filling vacant positions from within will help your company reduce hiring processes and costs.
    • People within the organization already have an idea of the company culture and vision, making the transition more fluid.
    • Promoting that you have an internal succession planning process will increase retention and encourage career growth with current staff.

– Employee Benefits

    • Having a plan for your employees’ future encourages more targeted employee development.
    • Employees will feel valued and prioritized by the company they work for.
    • It can lead to better workforce productivity and goal achievement.
    • There is a direct transfer of skills, knowledge, and competencies from experienced managers.

– Business Benefits

  • The right program to prepare an employee for leadership can lead to significant business results later.
  • Effective succession planning leads to fewer risks in the organization.
  • Happy and well-trained employees can result in better business.

Tips for Effective Succession Planning

Here are some tips that can help you create an effective succession plan for the whole organization:

  • Decide on a vision – Every great plan starts with a goal. Before you plan where you want to place your people, you should have a clear idea of where you want your business to go. That will help you determine the type of people you need and what skills they need to develop.
  • Develop a pool of leaders – Determine the people who have the potential to meet the role and make sure they are interested in growing with the company. Make sure to see each employee’s skills and capabilities and not be boxed into the typical qualifications. Remember that their current skills can be harnessed, and new skills can always be developed.
  • Create a timeline – A plan is only effective if there is a timeline to follow. Set a targeted deadline to help everyone involved. It gives the company an expected output for a certain period, and it gives employees something to target and look forward to.
  • Let people learn by doing – To make sure that everyone is not wasting their precious time and energy, let your employees learn by doing the work. Instead of just relying on concepts and theories, your employees can better develop their skill set with proper guided immersion.

Conclusion

Any organization is free to develop its succession plan, depending on its values and objectives. The most important thing is to have one for the sake of your business and, most importantly, your employees.

If you need help developing a succession plan for your company, give us a call at 587-404-7491. At Involvi Consulting, we understand your employees are your most important asset. We help our clients build custom human resource solutions to keep their employees happy while keeping their business moving.