In order for your organization to be successful over a long period of time, a succession plan is needed. No matter what size your organization is, if talented employees leave, you’re going to be in trouble. This article shows how you can find the best successor.
What is Succession Planning?
Succession Planning is the process of finding the right successors to your key employee roles. A 2003 survey from SHRM found that 60% of organizations have no succession planning at all. Because of this, employers get in trouble when an employee leaves the organization. As a result, organizations risk losing knowledge and experience. Preparing yourself for events to come is the right way to secure future prosperity of your organization. Here are some reasons why you should consider succession planning.
For the long haul
Forward thinking gets you ahead. If an employee gets within 5-10 years of retirement age, it’s a good idea to plan ahead. Do you have someone within the organization that can take things over? In this case, you can promote this employee when the time is right.
Are you in an industry with a lot of growth? For instance, IT organizations might want to consider to expend their team in the future based on growth. You can anticipate on expected changes throughout the entire organization. If you’re making software with a small team, you do not only need to think about more developers and account managers, but also setting up an HR department and hiring more managers.
COVID-19 is an example of a crisis that has a huge impact on businesses worldwide. Even though you probably don’t have to worry about replacing your entire workforce due to sickness, it is important to look for a solution when an employee falls ill. We wrote an article on this issue not too long ago.
Maintain your identity
The brand identity and reputation are made throughout the years. It would be a shame if this goes away the moment some core employees leave. Before you promote someone within the organization to take over an employee that is leaving, make sure this employee knows what the organization stands for. This way, you can keep the name that you all have been working hard for!
Don’t forget your own succession planning
A good succession planning process starts with yourself. Who is fit to take your position over when you leave the organization?
How to identify the most qualified employees?
We created a tool to identify and develop leaders from within your organization. The Succession Planning Web App for Dynamics 365 HR gives you insight into your employees status fields. These fields are retention, performance and potential. Based on this rating, employees will be divided into the 9-Box Talent Grid.
Managers can decide what they want to do with an employee based on this ranking. This could mean disciplinary actions, but most of the time employees can develop themselves which strengthens your organization.