Benefits of Succession Planning
Succession Planning for organizations of any size is critical, and in fact vital for the long-term sustainability and success of the organization. As part of an HR strategy, it assumes even greater importance as it is all about the development of human capital. Succession Planning is about grooming capable individuals to fill vacancies as they acquire key positions in the organization. The benefits of engaging in timely succession planning are many.
1) Succession Planning ensures that there is a steady supply of able successors selected for key positions. It ensures that there is no vacuum created after a vacancy in a key position, and that there is back-up staff ready to fill in with the necessary training skills and experience. There is a good level of preparedness to deal with possible challenging situations.
2) There are several situations that can arise from leave of absence, illness, resignation, demise or corporate restructuring wherein the key figure is unavailable to perform his/her role. In such cases, the morale and productivity of people being led by the key individuals is affected. Succession Planning enables a seamless transition, where the takeover of a role is a fast and surefooted move. All employees are aware and work is kept running in a business as usual fashion, with no ruffled feathers.
3) Succession Planning requires talent recognition within an organization. Intelligent software can greatly aid in outlining talents, skills, capabilities and potential in individuals. Individuals singled out for key positions hold pride in the fact that they have been chosen. It can be a huge motivating force for better performance.
4) Employees develop a greater admiration and respect for organization and management when they see that their interest and their growth is important to the organization.
5) The organization can leverage its position in the industry as a ‘great employer’ or ‘employer of choice’ by projecting its sincere efforts and interest in employee growth.
6) Individually tailored development programs are career paths for able individuals that can be highly effective in the development of future leaders. Such active interest is vital for retention of talent within the organization.
7) Succession Planning is essentially the grooming of potential successors from within the organization. This ensures that the people who are being trained for key roles are the best ‘cultural’ fit as they are well versed with the organization’s culture, ethics and values. A comfortable perpetuity is ensured for all that the organization stands for.
8) Succession Planning allows one to envision the future of an organization—the direction where it is headed, its future goals and objectives. This exercise enables one to tangibly foresee the skills and resources that would be required to achieve those objectives. The effort is progressive and defining.
9) Timely Succession Planning helps in reducing the cost of hiring a person from outside the organization, which would have to be the case if there were no able successors in place. The entire process of external recruitment can be eliminated thereby reducing the pressure that comes with it. External recruitment also raises questions of retraining loyalty, ethos etc.
10) Succession Planning starts fairly early and this ensures that the company does not have to “settle for” a certain person, because a “desirable” person of choice has been carefully selected based on parameters relevant to the organization.