What Is Succession Planning In Hr – There are regular annual processes that go through strategic alignment, financial planning, employee satisfaction surveys, reporting and many other important processes to move the organization forward. However, one of the most important but often overlooked aspects is succession planning. Tracking queue planning metrics can help you understand how you’re doing and what needs to be done better.
Where an organization goes and its ability to execute its strategy depends largely on having the right talent and leaders in the right role at the right time. For the most part, it is clear that this is not always the case, as some of the consequences of the Great Sign can be seen. In fact, while 86 percent of executives believe succession planning is an important or urgent priority, only 14 percent believe they are doing it well.
What Is Succession Planning In Hr
To add to the problem, one of the emerging trends for 2022 is that the future of work will be flexible and uncertain. The business world is unpredictable, so it’s important to prepare for multiple futures. Hence, succession planning is an urgent necessity for every organization.
In Uncertain Times, Succession Planning Is More Important Than Ever
In short, succession planning is the process and strategy of identifying and developing talent to fill critical roles within an organization as needed. Typically, HR professionals lead this process with managers and senior executives.
There are two types of succession planning indicators. Combining these two categories of metrics is the best approach to get the clearest picture of the state of succession planning in your organization.
High-potential employees have the combination of ability and motivation to succeed in higher positions in the organization. As an organization, it is critical that you retain, nurture and develop these employees and accommodate them in your succession plan. To measure potential, you can use a 9-box grid:
Succession planning focuses on the two blocks in the upper right corner (Stars) and in the middle (Top Performers). These are the employees who will build the future of your organization. To accurately place your employees on this network, you can:
Pdf) Linking Succession Planning To Organizational Strategy: A Prescriptive Framework
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If an organization’s most valuable assets are its employees, then high potential (HiPo) is very valuable. HiPo has a combination of aspiration, attraction and ability:
Once you’ve identified these personas, you’ll want to match them with important roles. For each important role, you want to have at least two successors, who are ideal HiPo employees. Of course, you first need to identify the critical roles in your organization. Critical roles are roles that are of high importance to business operations or have a unique skill or knowledge base and will impact the organization over the next 5-10 years.
The percentage of key roles filled internally measures your ability to develop talent internally and whether your succession plan is working. You can compare this to the percentage (%) of critical roles filled by external candidates. You can do the same for management positions.
Implement Flexible Succession Plans To Support Organizational Continuity Design Agility Into Succession Plans To Increase Bench Strength And Responsiveness.
This is a great way to determine your organization’s “bench strength” and whether your succession plan is in place. You can get this information from internal recruiting efforts. The percentage of key external roles will tell you whether your employer brand and external recruitment strategy is strong enough to support your succession plan. Again, you can get this information from employment statistics.
This indicator is also called “flight risk”. How likely is it that a certain (high-potential) employee will leave in the next X months? Now there is no way to accurately measure the risk of flight, because it literally reads into the future. But there are measures that can provide indicators of when a high-potential employee might leave.
Also, flight risk can be measured through different models and it takes time and proper input to ensure accuracy.
This is an indication that the organization’s succession planning is failing as the turnover of high potentials is increasing. This is an indicator of efforts to retain high-potential employees.
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Divide the remaining number of HiPos by the number of HiPos in the organization to calculate high potential turnover. Turnover rates quantitatively indicate whether this is a concern (you can measure whether it is above average relative to the rest of the workforce in the organization). HiPos exit interviews are also an effective way to understand why they left and what your organization did to retain them.
Bench strength refers to an organization’s ability to fill critical positions internally. A common way to assess bench strength is to look at the percentage of employees or managers you identify as ready for promotion (high potential). Divide the number of employees available for promotion by the total number of HiPo / management employees to get your result.
How do you know if an employee is ready for a promotion? Here are a few things to consider:
It measures employee growth by the number of lateral and vertical promotions. To calculate the career path ratio, divide the total number of promotions (up) in the organization by all role changes (both sideways and up). Below is how to interpret the results
What Is Succession Planning?
A succession plan is not just about promoting the best employees with high potential, but everyone along the way. So good lateral and upward movement is important.
Another set of metrics to monitor is the tools and development activities that support effective succession planning. Some of these measures include:
The percentage of an employee’s time spent filling a vacant role (key role or management position) from the succession plan. This is to test whether sequence planning is simply done as a token or if it is actually used for decision making.
You can calculate this by dividing the number of employees by the promotion succession plan / number of employees promoted to the vacant position.
Ways To Boost Your Hr’s Succession Planning Effectiveness
There are other clear indicators of whether a succession plan is working in an organization.
When measuring the state of succession planning in your organization, you must choose appropriate metrics. As we mentioned earlier, the board also deals with other numbers besides the talent management team. So choose your metrics carefully, collect and analyze data regularly, and make data-driven decisions based on the results. In this way, you ensure that the succession planning process in your company is as efficient as possible.
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Eric van Wulpen is the founder and dean. He is an expert in shaping modern HR practices by incorporating technological innovations into the HR context. He is recognized globally as a thought leader in HR and regularly speaks on topics such as People Analytics, Digital HR and the Future of Work. business or retirement, talent planning and management is a critical aspect of business success. Add to this dynamic that hiring from outside the company is more expensive than developing internal talent. However, it can take up to 20 years to develop an employee to be fit or ready for the C-Suite. If you believe that success management is limited to the C-Suite, you are effectively creating blind spots within your organization. The key to successful management is understanding that it involves developing leaders at all levels of the organization.
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A number of longitudinal studies have confirmed why external recruitment to senior positions in an organization is usually not as successful as internal promotions. Some of the top reasons new hires fail are:
Companies must have a well-defined and structured succession plan, while managing the program consistently and effectively. Managing a solid succession plan ensures business continuity. A lack of follow-up during a crisis can, at the very least, lead to confusion in direction and lack of employee motivation. At worst, the lack of planned succession can lead to the death of the company altogether.
A mature succession planning process focuses organizations on building meaningful things that enable the business plan and align with their true business values. The process begins by focusing on creating an appropriate and proven leadership model that supports business success. A leadership profile is created based on defined behaviors that reflect the true values of the company. After developing the model, we will guide you in creating a series of activities that will allow you to distinguish between employees who are role experts, high potential or motivated individuals.
It is critical to teach senior leaders the difference between high potential and high performance based on facts, not emotion.
Succession Planning Template
In partnership with your success management and leadership development teams, we help create a leadership curriculum (a series of formal programs).
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