SUCCESSION PLANNING

Introduction to succession planning

Succession planning is a process of ensuring a suitable supply of successors for

current and future key jobs.

Succession planning is an essential activity that focuses on planning and managing

the career of individuals to optimize their needs and aspirations.

The term succession planning can be better understood by studying its

characteristics. A succession of persons to fill key positions over time is essential for
the survival and success of an organization.

The purpose of succession planning is to identify and develop people to replace

current incumbents in key positions in cases of resignation, retirement, promotions,
growth, expansion and creation of new positions.Succession by people from within
provides opportunities to employees for progress in their careers.

The purpose of succession planning is to identify, develop, and make the people
ready to occupy higher level jobs as and when they fall vacant higher level jobs fall
vacant due to various reasons like retirement, resignation, promotion, death,
creation of new position and new assignments.

What is succession planning ?

Succession Planning is defined as the systematic process of recognizing and

creating future leaders who are able to take the position of the old ones when they
leave the organization due to retirement, resignation, termination, transfer,
promotion or death.

In finer terms, it is a modern technique followed by many companies, that

concentrates on identifying the prospects, out of many employees in the
organization, who might be possible successors, for the key positions.
Objectives of succession planning
● Ensure the continuity of leadership in critical positions.
● Retain and develop intellectual capital to support future growth.
● Encourage and motivate high potential employees to aspire for
advancement.

Guidelines for effective succession planning

● Customized to suit the needs of the organization.
● Driven by the line function and not HR executives.
● Developing key candidates, in anticipation of future openings.
● Training & Development
● Take into account the culture of the organization.
● Consistent with the future strategic direction of the company

What are the benefits of succession planning?

The need for succession planning relates closely to its benefits. Some benefits
include the following:

● Succession planning helps save time and cost. The time needed to find an
employee's replacement will cost lost productivity, time and money.
● With more baby boomers retiring, succession planning helps ensure there
are more employees available with the skill set to replace senior
executives.
● When a candidate-driven market exists, companies compete for a
scarcity of talent, which typically makes hiring desired candidates more
difficult. Choosing internal employees to fill vacant critical roles helps
avoid this challenge.
● It boosts employee engagement through career development and makes
workers feel valued.
● Succession planning helps an organization create a better reputation as a
talent destination.
● It provides for smoother business operations and delivery of
uninterrupted excellence, as skilled employees can immediately fill
needed high-level roles.
 ● It helps to align HR and the vision for an organization, and supports HR
and managers in creating and supporting proactive programs.
● Supervisors mentor employees, transferring their expertise.
● Management keeps better track of potential valuable employees.

Process of Succession Planning

The systematic approach & process which are used for training & grooming
employees for the future are:
1. Identify key positions
There are certain important positions in the organization which cannot be filled
without planning and through external hiring. For those positions, a candidate who
understands the company, processes and has a proven record would be more fit.
Such positions need to be identified before starting the succession plan.
2. Assess skills & abilities needed
Next step is to understand the skills and qualifications required for performing in
those key positions in the organization. In the plan made for the new employee, skill
gaps need to be identified and rectified.
3. Identify employees

Next and most important step is to identify the right employees who are not only fit
for the roles but also willing to take on the next key position and be a future leader
in the organization.
4. Develop & Train employees

Once the positions and the employees are identified, right training programs and
grooming need to be planned for these key employees. Many skills need to be
developed over a period of time which will lead to them being ready for the next
step.
5. Continue Evaluating process for the future

Once the employees have started taking the new roles, proper evaluation should be
done on the performance, motivation and results of the job role change. Feedback
should be taken from the promoted employees on what could be improved for the
next batch.

Pros and Cons of Succession planning

Pros

● Internal candidates are more likely to be successful than external candidates,

● Can provide a sense of stability and direction for the organization,
● Instill confidence with customers, shareholders, investors,
● Cost savings

Cons:

• There may not be internal candidates that possess the skills to move forward,

• If not done right, or no commitment from the top, it can be a waste of time and
resources,

• Can run the risk of developed top talent leaving to competition,

• Wrong conclusions about successors can derail success.

Conclusion
Succession Planning is a process in which for every individual in a critical position,
a successor has been planned. The successor is a potential replacement who could
take charge immediately.