How to implement succession planning as part of an employee development strategy
Learn how to prepare your organisation for growth and unexpected disruption with succession planning.
Filling key roles with the right people is vital to an organisation’s long-term success. However, in the face of skills shortages, shifting candidate expectations and the emergence of new technologies, 29% of businesses see retaining staff as one of their primary challenges.
Moreover, with 33% of HR representatives expecting a substantial rise in the need for internal talent development, efforts to identify future leaders, expand development opportunities and cultivate internal candidates have intensified. As a result, many employers are starting to see succession planning as a strategic priority as they look to retain workers and foster continuity.
In this article, we look at how to implement succession planning in an organisation as part of employee development for high performers within the workforce.
What is succession planning?
Succession planning is the process of identifying and developing high-potential employees and equipping them with the skills they need to occupy critical positions and drive long-term success. As such, succession planning is a key strategy within broader organisational planning and in ensuring business continuity.
By harnessing the potential of existing employees, a succession plan ensures a pathway is available for those looking to move into critical or leadership roles, thereby helping to mitigate the impact of staff turnover and unforeseen departures.
Benefits of effective succession planning
While creating and implementing a succession plan is crucial to minimising the inevitable disruption that occurs when a member of staff leaves your organisation, various other benefits come with a well-defined succession plan. These include:
- Prevent knowledge gaps: Effective succession planning ensures a seamless transition of knowledge and expertise, preventing the loss of valuable information when employees retire or depart from critical roles.
- Improve retention: Research from Totaljobs shows that 72% of workers want more learning and development opportunities. Investing in succession planning not only signifies a dedication to their professional growth but establishes pathways for advancement that encourage employees to pursue a long-term career in the organisation.
- Boost engagement: A culture of internal advancement can help employers cultivate an enthusiastic and committed workforce, one that is eager to contribute to the organisation’s long-term success and transition into leadership positions.
- Enhance resilience: With over 80% of organisations facing leadership talent shortages, supporting talent at various levels allows employers to create a versatile workforce capable of filling critical roles to ensure continuity and stability even in uncertain circumstances.
Factors to consider in succession planning
Before beginning the process of implementing a succession planning strategy, first there are several key factors employers should consider, including:
- Organisational culture: Every organisation has their own unique culture. Aligning succession strategies with this culture ensures transitions are smooth and that candidates are well-suited to uphold and perpetuate the existing ethos and bring continuity.
- Skills gaps: Identifying current and future skill requirements is crucial in succession planning. Addressing these gaps with training and development programmes helps to ensure that succession planning is aligned with evolving organisational demands.
- Demographics: A demographic skew, such as the ageing workforce UK employers are experiencing, can significantly influence succession efforts. Understanding these trends allows employers to tailor strategies that address specific workforce trends.
- Goals: Clear goals serve as the foundation for succession planning initiatives. Aligning succession planning with strategic goals ensures that leadership transitions support the overarching mission and objectives, fostering continuity and contributing to success.
- Competencies: Assessing the competencies required for various roles is central to effective succession planning, allowing employers to identify high-potential individuals and tailor development plans to groom potential successors.
Strategies for effective succession planning
Creating a succession plan isn’t a task to be taken lightly. After all, you’re planning for your organisation’s long-term future. This process therefore requires strategy, structure and debate. Let’s take a look at the different stages of the process.
Establish a working group and assess current and future goals
The planning process should include any members of staff who drive decisions or have a good overall understanding of how the organisation works. This can involve HR and the leadership team, for example.
The first step is to define the top-line business goals, followed by the strategy that will drive revenue. The strategy needs to consider the overall mission and define the types of employees who will drive growth in terms of their values. Goals might encompass:
- Gross revenue target
- 5 and 10 year plan
- Geographical locations of expansion
- New products and services
- Headcount targets
Define business critical roles
The next stage in the succession planning process is working out which roles are going to drive the overall mission forward. Generally, this will include senior management and leadership roles within the organisation.
It may be that these are future roles that do not exist yet. Or perhaps you just need talent to replace pre-existing leaders in the event they retire or leave the organisation. It’s important to include roles that are hard to fill within the process, even if they are not decision-making roles.
Agree on necessary skills and experience for priority roles
Once key positions have been mapped out, it’s time to define the responsibilities and skills needed to succeed in these roles. Remember to include both hard and soft skills and to reflect on what skills will be needed in the future.
Identify suitable candidates for succession planning
After defining the key roles and the responsibilities required within them, you’ll need to begin the process of identifying which candidates from within your existing workforce to develop.
When considering candidates, look for potential rather than just those who are ‘second in command’. There may be talent further down the pipeline that’s better suited to key roles. Remember, you’re not looking for the finished product, but for employees that show great potential and align with the organisation’s values and mission.
Where possible, keep this process structured. HR teams often use a competency framework similar to frameworks used for promotion assessments. This framework could include some general leadership skills and some that are specific to the role itself. In some cases, it may be useful to use psychometric profiling. Framework criteria could include:
- Leadership potential
- Interpersonal skills
- Proficiency with software
- Alignment with organisational values and mission
- Motivation levels
- Sales ability
- Management ability
Keep in mind that succession planning doesn’t have to be based around a specific role. It could be targeting a particular skill set that needs nurturing due to a shortage. For example, to achieve the business’s top-line goals, an employer may need several employees to become highly skilled using a particular type of software. Therefore, succession planning is based on large-scale upskilling of an internal pool of employees, rather than training someone to move into a new position.
Utilise succession aims as part of employee development
After identifying suitable succession candidates, you next need to incorporate succession planning aims into their employee development plan. This will ensure steps are in place to continuously develop the employee in the right direction.
Once the aims have been established, you can then use performance reviews to track the employee’s progress. These can take place on an annual or bi-annual basis, however, if you’re aiming for a more intense period of progression, you may decide to conduct them quarterly.
Top tips for successful succession planning
While the stages above provide a blueprint for implementing a comprehensive succession planning strategy, there are additional strategies employers can deploy to enhance their chances of success. Let’s explore how you can elevate your succession planning efforts to achieve optimal outcomes.
Start in advance
Initiating succession planning well in advance is essential for its effectiveness. A timeline of up to 10 years may be necessary to identify, groom, and prepare suitable successors for key roles within your organisation. By starting early, you allow ample time for talent development, ensuring a smooth transition when leadership changes occur.
Give practical experience
Provide candidates with practical opportunities to step into their future roles. Encourage shadowing, mentoring, and job rotation to familiarise potential successors with the responsibilities and challenges they will face. Additionally, consider delegating tasks or projects to successors when senior workers are on leave, offering valuable hands-on experience and preparing them for leadership roles.
Review the plan regularly
Regularly reviewing and updating your succession plan is crucial to its relevance and effectiveness. As your organisation evolves and circumstances change, reassess the skills, competencies, and development needs of potential successors. Be prepared to adapt the plan accordingly to ensure alignment with your organisation’s goals and evolving talent landscape.
Think creatively
Embrace creativity and innovation in your succession planning approach. Instead of rigidly adhering to traditional pathways, explore alternative solutions such as job redesign, talent sharing, or creating hybrid roles. Consider whether it may be more advantageous to redistribute responsibilities among existing team members rather than directly replacing a departing employee. This flexible mindset allows for more tailored and adaptable succession strategies.
Don’t overpromise
While succession planning provides opportunities for career advancement and development, it’s important to manage expectations and avoid over-promising. Remind employees that succession plans are subject to change based on evolving business needs and individual performance. Emphasise transparency and open communication, assuring employees that any adjustments to the plan will be communicated honestly and fairly.