What are the benefits to succession planning?

September 16, 2019

As a business grows and evolves, internal leaders often find that they must adapt over time in order to continue finding success. Despite this adaptive nature, even the greatest corporate minds phase out over time due to retirement, unplanned life events or other factors.

This is where succession planning becomes critical to long-term organizational prosperity. Your existing managers, directors, and executives helped the company achieve new heights of success, but who will lead the charge in the decades to come? There are many benefits to formalizing and organizing a finely tuned succession plan in order to have key players available when the time comes. Business continuity is more than happenstance or having the best staff in the right place at the right time. The HR professionals at SourcePointe can help build a plan for your organization that fits your long-term vision and staffing needs by applying the concepts below.

Build career paths to retain talent.

A recent Gallup Poll showed that 59% of millennials want opportunities to learn and grow when applying for jobs. Additionally, this growth is important to previous generations, but it resonates even more with younger employees, according to the study. By providing a structured path for vertical mobility, you are empowering your entry level staff to take greater ownership of their current roles while evaluating future advancement. Providing management training for select staffers allows them to plan ahead while also stockpiling future management candidates internally. Knowing that there is a defined career track in place will lead to higher levels of employee retention, especially among ambitious talent.

Reduce external recruiting & hiring costs.

Forbes and The Wall Street Journal analyzed the perceived costs of hiring job applicants from outside an organization and the results were surprising. Not only were external hires being paid 18% more than internal candidates for the same positions, they were also 61% more likely to be fired. With so much attention on ROI in today’s decision making, the case for an organized leadership training program couldn’t be more clear.

Cultivate culture and brand continuity.

One of the biggest learning curves for anyone starting a new position comes with absorbing the institutional knowledge that is ingrained among existing employees. Your existing staff understands the brand and corporate culture after observing the day-to-day procedures and decisions over a period of time. Often times, learning new job functions in addition to the ebb and flow of office politics can be challenging for any external hire. Your other talented staffers will also see and respond positively as their colleagues are promoted. This has an indirect and positive psychological impact as employees observe hard work paying off in a big way for a coworker.  

Cross training and layered accountability.

In many companies, job descriptions become a formality over time as roles evolve and the day-to-day work grows beyond the original vision for the position. People pick up new responsibilities and business needs change. Formalizing a succession plan for a specific role should allow time for a quick gap analysis. What is the function we’re planning to replace? Have we documented all the various responsibilities and functions of our key players? How does that compare to our formal job description for this role? These questions and others not only help future asset planning, but may also uncover existing gaps. An organized training program should also build in a natural layer of healthy redundancy. Does the person you’re grooming for a future promotion see ways to improve procedures or profitability? Did the legacy department head uncover a neglected role or another organizational gap?

We can help.

Employers that offer professional development opportunities, hire internally, carefully cultivate their company culture, and layer accountability through training often find themselves in a position to build on past success with an eye toward the future. Management training and succession planning can benefit an organization for many years to come. Our experienced team of HR professionals can help managers unlock the hidden potential for staff in surprising ways. At SourcePointe, we utilize our industry-experience to provide you with a multitude of customizable HR services, support, and solutions. All so your business can do one thing – more business. We’ll provide tailor-made solutions that fit your company’s needs while providing a solid return on your investment that pays off immediately – and for many years after that.[1]

looks great to me! my feedback is complete.

   Back to Insights