It is a process in which the organisation continuously develops its employees to upgrade their potential for a specific position, eventually ensuring higher stability and growth for the company.
It was initially used as a replacement approach followed by HRM for the executive position in the company. Currently, Succession planning has become a broader concept of HRM. Here are the key factors that support Succession planning:
Identifying and developing skills and abilities of an individual
Managing the HRM practices at a broader level and making it more efficient
Assure continuous talent supply
Importance of Succession Planning
It helps sustain the growth of the company and ensures higher productivity. The effectiveness of succession planning is at its peak during leadership transition and changing periods.
Here is a list of losses that you can face if you don’t follow this plan:
Loss of top talent and critical thinking ability in the company
Promotes the unworthy success of the employee who lacks knowledge, commitment and skills
Makes the hiring process more time-consuming and costly
Models of succession planning
Mass recruitment is a model in which the employer processes training and development sessions for the in-house employees to fill the vacant position successfully. In this, all the employees, including juniors, seniors, managers, leaders and supervisors, get involved and practice a specific training session. It is an effective recruitment method but requires high investment and resources.
Specialised recruitment: In this, the employer chooses a specific group of people for leadership training, which gives them an alternative to getting work done by a competent leader during times of unfavourable scenarios. These training programs are specifically made to accommodate the needs and requirements of a crystal position. It is comparatively a cost-effective process but also faces blockages at the time when a potential employee quits the company.
Outside recruitment refers to the company hiring an employee outside the work buddies to fill a vacancy and manage a specific role. It is one of the most effective models as there is a pool of talent out there, which ensures strategic leadership in the company. However, it is a lengthy process as the employers must train them to familiarise themselves with the company and its processes.
Benefits from Succession planning
Cultural benefits: it helps maintain a better organisational structure and assures higher stability. By using succession planning, the employee can accelerate motivation within the team by identifying and developing the talent and rewarding them accordingly.
Operational benefits: Succession planning significantly impacts operations, and the core objective is to enhance the overall performance of the operation. Succession planning accesses higher operational performance by improving job satisfaction and minimising attrition.
Financial benefits: Recent studies have shown that succession planning is a critical investment but will enhance the company’s overall stability and growth.
Challenges of succession planning
Unstable workforce: It is one of the biggest drawbacks of succession planning, as training the employees who don’t want to stay longer can be difficult and costly.
Enhances workload: Sometimes, such planning can increase the regular working hours of the employees, making it difficult for them to adapt to the changes rapidly.
Ineffective change management: The employer must be highly professional in planning and implementing succession planning, as ineffective change management can lead to loss of productivity.
