Traditionally, succession planning focused on an orderly transition at the top of the company. Today, the focus is on dealing with the coming “brain drain” most companies will experience as Baby Boomers begin to retire.
We’re dealing with an aging workforce. For example, the Bureau of Labor Statistics reports that over one-third of the civilian employees working for the federal government are eligible for retirement. The same situation exists, to a somewhat lesser degree, in the workforce as a whole. Companies can’t duck the problems that presents.
In this new environment, succession planning has a broader focus. Companies must not only plan for staffing needs at the top of the company but also identify and plan for future human capital needs at all levels—planning for the future growth and success of the company.
If the company is not prepared and has not invested in its key employees, when the need to fill a position arises, the company will likely find itself looking outside the organization in competition with other public and private employers.
Developing a Succession Plan
To be of real value, a succession plan must include input from senior management, an analysis of the company’s current and future needs for talent, a plan for identifying employees who will be trained and mentored to fill key roles in the future, and a plan for recruiting outside talent to make sure the company has the skills and experience it needs.
Once this is done, the plan must be implemented, and managers and supervisors at all levels of the company must be evaluated on their work in developing employees.
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Early On—Study the Demographics of the Company
Early in the process, it is important to analyze the current workforce. Is “brain drain” going to present a significant problem for the company, and if so, when and in which areas or jobs?
Knowing when and where there will be key vacancies or a need to replace accumulated skills and knowledge will help focus on future needs as well as current vacancies when new employees are recruited and hired.
Link Strategic Goals with Human Capital Needs
Identify the talent, skills, and experience the company will need over the next five to 10 years to achieve goals and continue to be successful. This will include the knowledge, skills, abilities, experience, education, core competencies, and even personality traits that will be needed to fill top management positions and other positions that will be key to the company’s long-term success.
Let Senior Management Play a Role
Armed with demographic information and information on the talent, skills, and experience the company will need over the next five to 10 years, HR managers need to involve senior managers in the planning process so succession planning and the development of employees are adopted as strategic goals.
Senior managers will be more likely to participate in the process if it is linked to their own strategic goals and the long-term strategic goals of the company. Senior management roles include:
- Reviewing and adjusting the five- to 10-year analysis of talent, skills, and experience to make sure it is aligned with the long-term goals of the company
- Identifying key positions and the skills and experience necessary to fill them
- Using data that are readily available and can be gathered at regular intervals
- Identifying high achievers or high potential employees already working for the company who will be targeted for mentoring and cross-training so they can fill key positions in the future
- Providing project work to targeted employees to expand their knowledge and experience and prepare them for future leadership roles
- Supporting recruiting efforts aimed at hiring individuals with the skills and experience needed now and in the future
- Evaluating managers and supervisors at all levels of the company on how well they develop and mentor employees
Notifying Employees
Critical to the effectiveness of any succession plan is employee awareness of such a plan. Employees who are aware of the employer’s succession plan and program will be motivated to perform well. In addition, they will be more likely to stay, knowing that there is a tangible, well-laid-out plan for their future.
Succession Planning …Crisis Management …Building Your Corporate Brand …and So Much More!
As an HR professional, it’s crucial for you to be a manager of not just your employees’ career paths but your own as well.
Whether you’re fighting to hang onto your stars in an improving economy, or pushing your CEO to realize you’re more than “the company picnic planner,” your job is full of strategic challenges every day. Master them, and the sky’s the limit—for you and your organization.
We invite you to join us next month in Las Vegas for the Strategic HR Summit. Specifically for senior-level HR professionals, the program delivers use-it-now strategies and methods for pushing the value of your human capital investment to new levels through leadership, talent development, crisis management, and more.
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We’re offering intensive sessions, led by some of the country’s leading HR minds, on:
- Winning the war for talent
- Smart succession planning
- Managing multiple generations at work
- How to use social media to attract and recruit the right job candidates
- Cultivating a grassroots culture of leadership
- HR metrics and the bottom line
- Benefits communications
- Claiming your seat at the table
- And much, much more!
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It’s also worth consulting with the “super star” employees to find out what they like/don’t like about the company and what first attracted them to it.
It’s also worth consulting with the “super star” employees to find out what they like/don’t like about the company and what first attracted them to it.