You can’t run a business, regardless of its size, without talented people ready to move into key positions when the current occupants leave. Even the most successful employers can run off a cliff if they don’t have a solid succession plan in place.
But understanding what a succession plan is — and appreciating the importance of planning and succession in an organization — is not the same thing as having a plan you can count on when the time comes to make use of it. Among 2,500 hiring managers responding to a Robert Half survey, only 21% replied that they are not experiencing any challenges regarding succession planning. The remainder experienced multiple challenges, including:
Lack of succession candidates within the company (38%)
Retirement of key employees (35%)
Insufficient upskilling programs (35%)
Potential successors not interested in leadership roles (34%)
No succession plan in place (19%)
So, just what is a succession plan? In simplest terms, succession planning is defined as a strategy for identifying and developing future leaders at your company — not just at the top but for major roles at all levels. The benefits of succession planning are many, but the bottom line is that a strong succession plan helps your business prepare for all contingencies by identifying and preparing high-potential workers for advancement.
What’s the best way to start the succession planning process? Here are seven tips for establishing and maintaining a strong succession plan at your company.
Sometimes, you’ll know well in advance if a hard-to-replace team member is going to leave the company — a planned retirement is a good example. But other times, you’ll be caught off-guard by a sudden and potentially disorienting employee departure.
If you’ve been wondering if succession planning is really that important, or you just haven’t given it that much thought at all, take a minute to imagine what would happen if someone needs to be replaced and you’re not ready. It’s not exactly a reassuring thought, is it? That’s why you need a plan — now.
First, consider all the key roles on your team and answer these two questions:
What’s the day-to-day impact of X position on our company or department?
If the person currently in X position left, how would that affect our operations?
Once you have a handle on the ripple effect that the departure of certain employees might cause, choose team members who could potentially step into those positions.
Ask yourself:
If we were to hire for X position internally, which employees would be the strongest candidates for stepping into this role?
Would those candidates need training? And, if so, what type?
While the obvious successor to a role may be the person who is immediately next in line in the organizational chart, don’t discount other promising employees. Look for people who display the skills necessary to thrive in higher positions, regardless of their current title. Part of the succession planning process is being attuned to noticing employees who may have what it takes to step up when the situation calls for it.
But don’t just assume you know how people on your team view their career goals. You may have certain team members in mind for senior management roles, but who’s to say they’ll even be interested in the idea once it’s presented to them? If you haven’t already, talk to these employees about how they view their professional future before making your succession choices.
In private meetings, explain to each protege that they’re being singled out for positions of increasing importance. Establish an understanding that there are no guarantees, and the situation can change due to circumstances encountered by either the company or the succession candidates themselves. One of the underlying functions of a succession plan is making sure that those directly involved are prepared when circumstances dictate, and having conversations to that end helps solidify their readiness.
Ideally, you have already been investing in the career development of those you select as your succession choices. Now that preparation needs to be ramped up. Job rotation is a good way to help your candidates gain additional knowledge and experience. And connecting them with mentors can boost their abilities in the critical area of soft skills: The best leaders have strong communication skills, as well as polished interpersonal abilities, such as empathy and diplomacy.
Don’t wait until there’s a crisis to test whether an employee has the right stuff to assume a more advanced role. Have a potential successor assume some responsibilities of a manager who’s taking a vacation. The employee will gain valuable experience and appreciate the opportunity to shine. And you can assess where that person might need some additional training and development.
Once you’ve identified employees as successors for critical roles in your organization, take note of any talent gaps they would leave behind if tapped. That can help you identify where to focus your future recruiting efforts.
When evaluating succession planning strategies and making a succession plan for your organization, keep in mind that your own role will someday require backfilling. Maybe you’ll decide to take advantage of a new opportunity, or you’ll put in your time and retire from the workforce. So it’s important to ask yourself, which employee could step into your shoes one day? And what can you do, starting now, to help that person prepare for the transition?
The members of your workforce aren’t fixed assets — and changes in your team’s lineup are inevitable. You may not always be able to predict a valued employee’s departure from the firm. But through effective succession planning, you can pave the way for the continuity so critical to your business’s future.
Subscribe to the Robert Half Newsletter for articles and resources on how to build and manage a winning team.
