In any business there will be talented people in positions essential to your company's success. Whether you're in a management role or running a small business, you need to be prepared for when a team member moves on to another role or to another company or retires. If you don't have a succession plan in place, you could be setting yourself up for failure.
Read on to learn more about what a succession plan is and how to implement one in your business to ensure a smooth transition as employees move from role to role.
What is a Succession Plan?
A succession plan is a process that identifies high performers and helps them develop and prepare them to take on future leadership positions within the company. When an employee in a critical role leaves the company, having someone available to step into the role quickly can ensure your business continues to operate smoothly. It can also ensure that the rest of the team remains positive, and having the right person step in can actually boost employee morale.
As an organization grows, having someone ready to step into a role and perform well right out the gate can ensure a smooth transition that positively impacts every aspect of the business. You don't want to wait until the last minute to search for someone to fill the position. You could end up with someone who isn't right for the role and negatively impact the performance of your business.
Succession planning is a long-term process that looks for employees within the organization with the skills and motivation to potentially step into a leadership position or critical role in the future. It's a business strategy that can help encourage employees to grow and develop, which is positive for efficiency and performance. Your employees within the team will be much happier, remain loyal to the company, and you'll see a higher retention rate.
Benefits of a Successful Succession Plan
A succession plan can help an organization choose and develop top talent for critical roles and leadership positions. People in leadership roles can make or break a team's performance and morale, and choosing the right leaders is essential for success. The benefits of preparing a succession plan include:
More cost-effective than hiring an outside hire
The time a position is open is much shorter
Promotes engagement and retention
Boosts motivation and performance within the company
Creates a solid plan for when people leave
A succession plan can benefit the workforce by encouraging development that leads to more confidence and engagement as they work to strengthen their competencies and grow their careers.
Tips to Help You Set Up a Success Plan
Setting up a succession plan can keep your business in operation when key team members leave, planned or unplanned. Succession planning is a long-term strategy that involves choosing potential successors and investing time and resources into helping them grow. These tips will help you prepare for succession in any critical role in your business.
Proactively Plan – There will be times when you know far in advance when a member of your management team or a person in a critical role is planning on leaving their position or the company. Other times, it may happen unexpectedly. The earlier you start a succession plan, the better. You don't want to risk losing a critical role in your organization that leaves your team unsupported and unprepared to take on challenges.
Identify Top Talent – Be aware of the top talent in your company and assess their performance, skills, and interests. Even if you aren't sure where they could be a good fit, develop your employees to a point where they can easily step in and take over when a position arises. You can evaluate the talent and performance in the workspace through regular touch bases, providing training, assigning assessments, and providing feedback. Get an idea of your team's strengths and weaknesses and their goals, and you'll be better prepared to choose someone who may fit any leadership role.
Keep Track of Potential Successors for Each Position – If you have any clear candidates for a critical leadership role, keep track of them by listing them out. You can develop a formal system depending on the size of your company. Smaller businesses use software such as SharePoint to develop a shared file for HR and leadership to quickly reference who may be a good fit and where they are at in their development. Other larger companies and corporations have dedicated development platforms with a profile for each employee, including their background, skills, and goals. It's all about what fit's within your organization and your budget for development.
Inform Your Candidates – If you have an employee you want to move into another role, you can choose to let them know they are a candidate. Informing employees can encourage them to think about the future with their company and where they want to go, and how they will fit into the role. They are more likely to be motivated to work harder and seek out development opportunities that will help them easily step into that role.
Create a Learning and Development Program – Opening up a learning and development program can nurture a growth-oriented culture. An L&D program can encompass many potential departments and roles within your organization to ensure you can easily identify frontrunners for successors in any role.
Implementing Your Succession Plan – When the time has come for an employee in a critical role to leave the company or move into a new position, you have to be ready to implement your succession plan and begin the transition. Having a clear succession plan for a smooth transition
When you run a business, it's vital to ensure that even with sudden changes, operations continue to move forward without interruption to keep the flow and relationships with partners positive. Your workforce is never permanent, and people don't stay in the same position forever.
Creating a succession plan, whether designed for specific positions or departments, can empower employees to focus on development and boost motivation, performance, and loyalty. It ultimately helps create a team of high-performers able to take on multiple roles and prevent any gaps in your industry. It's a strategy that strengthens the workforce and cultivates a positive company culture your employees will be proud to be a part of.
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