In business, a lack of a succession plan can have long-term consequences. A rushed approach to succession planning also detrimentally affects talent management. Considering how important it is, you’ll want to ensure that you get succession planning right. This is easier said than done as succession planning can be rather tricky to manage. To help you out, we thought it would be useful to put together a list of mistakes that you need to avoid when putting together a succession plan. If this is something that you’re interested in learning more about, here are some of the common mistakes businesses make regarding succession planning.
Utilising Informal Strategies
When you run a business, it is often easy to overlook the need to plan for a key employee’s departure. In order for succession planning to be successful, it should be a formal strategy that is agreed upon by your leadership team and aligned with the strategic goals of your business.
For the best results, every succession plan should include the following things:
- A formally agreed plan to cover the key roles.
- Regular reviews of the job descriptions and the skills required for those positions.
- A brief but thorough list of potential internal candidates for each role. If required, external candidates can be brought into the mix for comparison at the time.
- Ongoing reviews of the shortlisted internal candidates.
Focusing Solely on the C Suite
Successful succession planning takes some effort, as it applies to a lot of people. Baby Boomers are reaching retirement age (it’s estimated that 10,000 of them reach that milestone every day), and millennials switch employers more frequently than past generations. This means succession planning must be expanded to include everyone in the organization.
Failing to Support Succession Planning with Technology
Modern succession planning software can make your business more successful by providing insight into the capabilities of your workforce and helping you identify skilled employees and those who have leadership potential. Today’s technology enables HR to evaluate, monitor, engage and develop your existing talent in order to fulfil key roles and create dedicated talent pools.
Making Assumptions Regarding Your Talent
Creating an effective succession plan requires you to understand the skillsets and qualifications of your employees. Investing in talent will help you attract skilled workers and ensure their preferred career path aligns with your strategic goals. Career pathing allows you to analyze your current corporate culture and identify which employees may have quiet skills for improvement that you didn’t know existed. This can help you determine new career paths for your employees so you can get the most out of your workforce.
We hope this article proves to be useful when it comes to helping you put together a succession plan for your organization. While it may seem daunting at first, it’s not something that you won’t be able to handle as long as you’re prepared and well-informed. Be sure to keep everything you’ve learned here in mind so that you can make the best decisions for your business.
If you need help with your succession plan, the law centre in Springfield has got you covered. Since 1999 Springfield Legal Service has offered expert legal services within the Springfield and wider Ipswich regions. The success of our firm has been built on providing specialist and tailored legal advice from individuals through to large corporations. Our firm is always evolving as the needs of our client’s change and as new challenges are presented in practising law. You can rest assured that, working with Springfield Legal Service, you will enjoy the latest services, technology and developments in the industry For more information on what we can do for you, visit our website today!