Less than 35% of companies report using a formal succession planning process. This can lead to substantial delays in hiring or promoting candidates to replace employees that leave unexpectedly. A common example is when a long-term employee quits without notice or is unable to work due to a catastrophic event such as a car accident or medical emergency.
The biggest mistake
Most companies identify internal candidates for leadership positions based solely on a nomination from their direct manager. This often results in employees that are not prepared to assume a leadership role. It can also lead to claims of unfairness or even discrimination if other more qualified internal candidates are passed over for the promotion.
Identifying and preparing future leaders within your organization is essential. Failing to implement effective policies that support succession planning, especially for critical positions, places the long-term stability and viability of the company at risk. Investing in the development of internal candidates also builds trust within the company which improves employee success, job satisfaction, and retention.
Dynamic succession planning means embedding support for employee growth and development into company culture and performance management. This creates a process for management to identify and prepare employees for future job opportunities within the company.
Here are a few steps to take towards implementing dynamic succession planning in your organization.
- Update Your Organization Chart
Understanding the structure of your company is an important first step for succession planning. The easiest way to do this is to create or update your company’s organization chart. In addition to showing reporting structures and chain of command, an organization chart can help you identify critical positions that require succession planning. It can also help you and your employees visualize career ladders and opportunities for advancement.
A detailed organization chart may include information about a specific employee’s performance, promotability, and risk upon separation. Tracking these details can make it easier for management to identify and track employees that would create a large risk to the organization if they were to leave unexpectedly. It can also assist with identifying internal job candidates.
- Create a Culture of Mentorship and Development
Setting company culture starts at the top and flows down. Immerse your employees at all levels in a culture that supports growth and development. Making this an integral part of the company culture means that you are always identifying and developing employees that may become future leaders in your organization.
One critical aspect of building this type of culture is to train supervisors on your culture so that they can model it for your other employees. It is important that management sees supporting growth and opportunity as beneficial rather than a threat to their position in the company. Management training should also include tips on how to identify and develop future leaders.
- Incorporate Performance Expectations
Finally, you must implement performance expectations that support employee growth and development. By embedding it in talent management, you can better hold supervisors accountable for the growth and development of their teams. For example, a supervisor could be required to have regular one-on-one meetings with their direct reports or instruct other employees about a new process.
Creating performance expectations in this manner also allows you to hold employees accountable for their own growth and development. Performances objectives could require an employee to obtain a specific certification or complete specified tasks or projects. The key to creating performance expectations that support succession planning is to blend company goals with employee goals.
The benefits are clear
Creating a culture that supports employee growth and development will not occur overnight. Depending on the size of the company, it may take months or even years to realize the full impact these changes have on the company. However, by embedding elements of succession planning into employee performance expectations, you should realize regular progress as employees accomplish goals. Companies may also experience a more immediate impact on their rates of job satisfaction and retention. Long-term benefits include having a larger pool of internal candidates prepared for leadership roles and attracting higher-quality external candidates interested in opportunities to grow and develop within your organization.