Change is permanent. Every organisation reaches a point where a change of personnel is necessary. With a global economy, comes the dynamics of shifting consumer needs, technological advancements and disruptions. There are also socioeconomic factors that were non-issues a few years ago. Tenures for personnel may not be as predictable now as they were a few years ago, with those in leadership often serving shorter periods than team members. Every business needs a ready change-over plan.
With succession planning, certain positions are assigned favourable candidates who are thoroughly prepared to occupy immediately. Most organisations, however, do not have such a program in place missing out on a range of benefits.
- Better Outcomes from Changeovers
With a proper strategy put in place, the qualifications for various leadership positions are pre-determined and well understood. Any potential candidates will be gauged according to the criteria developed from the desired qualifications, and thus the potential candidate will be very well prepared for any upcoming leadership role. This means little or no disruption to the business processes, especially on a leadership level.
- Better Engagement
Employee engagement has become a challenge for most businesses and organisations. The correlation between engagement and employee productivity is undeniable, with better staff retention rates providing value to the company. With a succession pipeline, employees are motivated because the future at the organisation is defined, as opposed to being subjected to a guessing game of whether they should remain patient or leave the organisation because they are unsure of their prospects.
- Business Continuity
With a good succession plan in place, the organisation does not have to scamper searching for a replacement. Who, even if found, will require orientation into the organisation, which requires time and resources better spent elsewhere. A succession plan provides a pipeline of capable replacements, ensuring business continuity.
- Reduced costs
With new staff, a business will incur the cost of advertising, scheduling and conducting interviews, either themselves or through an external party. And finally, orient the selected candidate into the organisation. This entire process is deemed unnecessary if a proper succession plan is in place.