Succession planning: What is it and why is it important?

Even with a superb employee retention strategy, change is inevitable. Employees will always progress, move departments or leave for a new opportunity elsewhere. This can be sudden, and has the potential to disrupt projects, strain client relationships and dampen team morale.

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In this article, we’ll explore the role of succession planning in overcoming these challenges and provide practical steps for you to future-proof your people strategy.

What is succession planning?

Succession planning is the process of identifying and defining roles crucial for organisational success and finding potential employees who could potentially fill these positions in future.

By proactively developing internal talent in this way, succession planning aims to prepare them for the role and prevent disruptions caused by staff turnover.

The benefits of succession planning

A clear succession plan for the indispensable roles within an organisation can lead to a number of desirable outcomes.

Let’s take a look at some of the most significant.

Ensure continuity of leadership

The stability of long-term succession planning for certain roles helps to protect:

• An entire organisation
• Individual teams
• High-value projects

In addition, it helps to align training initiatives with the organisation’s long-term goals and objectives, ensuring that future leaders are equipped with the skills required to drive the business forward.

Promote knowledge sharing

Succession planning can instil a continuous learning culture by encouraging current leaders to pass on their knowledge and skills to the next generation of talent, helping to unlock the potential of employees at all levels.

Improve employee retention

Previous research from Totaljobs shows that 7 in 10 people have left a job due to a lack of learning and development opportunities, with 9 in 10 people wanting more training from their employer.

Given these findings, offering employees clear pathways for development should be central to employer’s engagement and retention strategies, of which succession planning is a key pillar.

Further reading

How to improve employee engagement and retention

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Save on recruitment costs

Onboarding skilled candidates is a challenge. Totaljobs research shows 70% of recruiters struggle to find candidates with the right skills, while according to the CIPD almost 6 in 10 businesses (58%) find recruiting for senior or highly skilled positions the most challenging.

A planned, consistent investment in internal talent minimises the need for making external hires, saving resources and time associated with the recruitment process.

Improve organisational resilience

In an ever-evolving and increasingly unpredictable world of work facing economic disruption and the emergence of new technologies, resilience and adaptability are key to organisational success.

An effective talent pipeline underpinned by comprehensive succession planning helps to equip organisation’s with the personnel and culture they need to navigate change and unforeseen challenges.

Promote diversity, equity and inclusion

Because a transparent succession process allows organisations to spot high-potential employees who may otherwise be overlooked, particularly those who haven’t traditionally had access to informal networks or sponsorship, it can help employers:

• Challenge unconscious bias
• Widen their talent pools
• Actively support progression for people from all backgrounds

This not only helps address representation gaps at senior levels but also signals to employees that the organisation values equity and is committed to creating an inclusive culture where everyone has the opportunity to grow.

Create a winning employer brand

A strong succession plan is a powerful employer branding tool, with today’s candidates increasingly looking for organisations that invest in their people and offer clear, achievable paths for career development.

When an employer demonstrates a genuine commitment to nurturing internal talent, it can build a reputation as an employer that

• Rewards ambition
• Supports growth
• Prioritises long-term employee success

Creating an effective succession planning process

What’s actually involved in succession planning? Follow these steps to create a winning succession planning strategy:

1. Identify business critical roles

Identify the roles that are essential to your long-term success and, if unfilled or if poorly recruited, would create a significant challenge to your business.

There’s no one-size-fits-all approach, and you should consider any emerging skills critical to your industry and any key functions in the business if time and budget allow.

2. Consider future needs

According to a report from Gartner, a third of HR leaders find it challenging to develop talent for senior management roles, with 45% struggling to train people for mid-management positions. As a result, only half of employees feel prepared to lead their organisation in the future.

Being proactive is essential. By anticipating potential skills gaps on the horizon, such as those due to retirement or parental leave, and focusing on areas with higher staff turnover, you can mitigate their impact and ensure continuity in your workforce.

3. Pinpoint required skills and experience

Identify the specific requirements that someone in each role needs to have.

This will require a thorough assessment of the technology and systems used, as well as the criteria required for success in these key positions, including:

• Qualifications
• Experience
• Expertise
• Skills

4. Assess current talent pool

Succession planning hinges on finding the future leaders within your organisation. Take the time to evaluate your workforce, uncovering both technical expertise and leadership skills.

Collaborate with line managers to conduct a GAP analysis which pinpoints an individual’s strengths and development areas against the critical skills needed. Incorporate this into ongoing review practices to spot rising stars and potential successors within your own talent pool.

5. Develop succession candidates

Once you’ve identified your top talent, work closely with them to craft a personalised development plan aligned with their needs and the requirements of potential roles they may fill.

Best practices for a succession planning strategy

In addition to the steps outlined above, there are several strategies you can implement to ensure the long-term success of your succession planning.

Plan in advance

Succession planning is vital for any forward-thinking business, so take time to define the business-critical roles you need succession plans for, perform risk assessments on key employees, and map out various scenarios for your organisation’s future.

For a contingency plan, be thorough when identifying potential internal candidates and make sure you tailor their development plans to the roles you wish them to grow into.

Involve stakeholders

It’s crucial to involve stakeholders throughout the organisation, including:

This ensures that your succession plans are aligned with the day-to-day experiences of your employees, whether it’s their interactions with their manager or the project teams they’re invited to join.

Communicate transparently

Communication is vital within any organisation, especially when seeking long-term buy-in and engagement for initiatives like succession planning.

Here are some tips to help you spread the message:

• For candidates earmarked for succession plans: Actively listen to each person’s ambitions and goals to build trust and ensure their commitment to the programme and make their development a regular conversation point with their manager and within performance management. However, be sure to avoid over-promising regarding their progression, making it clear that future promotions are not guaranteed, but that potential opportunities exist. You can also highlight that the skills and experience they gain will benefit them in the future regardless.
• For employees in the wider business: Be sure to communicate the succession planning process openly to the entire organisation –?it’s not an exclusive club. Consider extending the programme, or a simplified version of it, to less business-critical roles if time and budget allow. You can also use this opportunity to promote the learning and development initiatives available to every employee. Position being a ‘future leader’ or ‘high potential employee’ as something for everyone in the company to aspire to, and where able, what they need to achieve to get onto the programme.

Continually review and update

With keen eyes on the future, your strategy for succession planning should be constantly evolving.

It’s crucial to stay updated on changes within your organisation, such as growing skills gaps, potential departures, and emerging talent. Conduct quarterly reviews to assess these factors and gather feedback from senior leadership, HR, succession candidates and the wider organisation.

This ensures that your succession plans remain flexible and aligned with the evolving needs of the business.

Think creatively

Try and embrace creativity and innovation in your succession planning approach by exploring alternative solutions such as:

• Job redesign
• Talent sharing
• 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.

Future-proof your leadership

Succession planning isn’t a one-off checklist. It’s a strategic habit. Begin by mapping business-critical roles and assessing your internal talent against the future skills those roles will need. Use gap analyses, mentorship, cross-functional projects and tailored development plans to turn high potential into ready capability. Communicate clearly so employees understand development pathways (without overpromising), involve stakeholders across HR and line management, and schedule regular reviews to keep the plan aligned with changing business goals. By doing this you protect continuity, improve retention, support DEI and strengthen your employer brand while reducing external hiring risk.