Benefits of Succession Planning
Estimated reading time: 5 minutes
Research shows that most companies have little or no deliberate succession planning in place and are not aware of how much the lack of it can cost their organisation, especially in an unstable economy. A study showed that only 55% of directors claimed to understand the strengths and weaknesses of their executives well or very well, while 77% did not participate in the performance evaluations of their firm’s top executives other than the CEO. And only 7% of companies formally assigned a director to mentor senior executives below the CEO.
Managing the succession of talent is a vital strategic process that minimizes gaps in leadership and enables your best people to develop the skills necessary for possible future roles.
Effective, proactive succession planning leaves your organization well prepared for all contingencies. Succession planning is a process for identifying and developing employees to fill the responsibilities of roles within the organization. Organizations can use succession planning to ensure all key roles within the company will be filled. Not only does it provide a safety net for the company, succession planning provides great benefits for your employees and employers alike.
Advantages for employees of succession planning are:
- Improved morale
- Employee retention
- Boost in performance
Advantages for employers of succession planning are:
- Company growth
- Identifies strengths and weaknesses of staff
- Career development opportunities
Advantages for employees of succession planning
- Improved morale
When employees know that a next role awaits them, it gives them a goal to work towards to and improves their morale. This provides a boost to their self-esteem and enhances their self-respect and value as an employee.
- Employee retention
When an employee knows that the organisation has future plans for them to grow within the company, it reinforces their desire for career development and career opportunities. When employees have that transparency and know they can advance, they are more likely to stay.
- Boost in performance
Through succession planning, the skillset, experience and development opportunities are identified, and the organisation can help employees prepare for their progression when the next job opportunity turns up. This results in increased productivity and encourages rapport building within and across the different departments.
Advantages for employers of succession planning
- Company growth
As your company grows and provides more services, it is important that employees are prepared to step into new roles to grow with the company. Through streamlining and aligning resources, employees can continuously support business goals and budget targets. While the loss of a key employee can undermine your ability to accomplish these important objectives, organisations must prevent this from happening.
- Identifies strengths and weaknesses of staff
Succession planning identifies strengths and weaknesses in the organisational chart, showing where skills gaps exist, where top talent and critical roles lie, and will reveal where new training and development might be needed. This is also useful when the organisation is ready to undergo a change, and ensures the organisation is not hampered by the lack of skilled employees.
- Career development opportunities
Lastly, succession planning provides key information to managers about all employees that allows managers to consider the widest number of candidates for any open job. It provides the metrics necessary to aid decision-making when it comes to recruitment, retention, employee engagement and attrition. It opens communication channels and strengthens work culture within the organisation.
Succession Planning 2019 is a 2-day training course held from 4 – 5 March 2019 (Kuala Lumpur). This training programme aims to equip participants with the necessary tools for succession planning through effective analysis and implementation. The programme outline is up to date and relevant to marketplace requirements, thus catering for all analytical prediction of training needs in the specified area.
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Opus Kinetic believes that people are why organisations are successful, and giving people the knowledge to perform well at their job is integral for success. We pride ourselves as the premier provider of knowledge, offering acclaimed in-house trainings, and many others professional training courses spanning from various industries. Our training courses are well researched and updated with the latest industry trends. For more information on our professional training programs, visit us at http://www.opuskinetic.com/training.