Succession Planning – Are You Ready?

Succession planning, in the past, was reserved for the executive suite in businesses, it was treated as a contingency plan for the worst-case scenarios. However, over the years, we have seen a vast shift in succession planning best practices. Organisations now see the value in cultivating talent in middle and lower management as well as at the executive level.

The Australian Bureau of Statistics estimate that the average age at retirement is 63.8 years of age. As Baby Boomers hit retirement age, we can expect to lose a lot of talent and knowledge from the marketplace in the next decade.

We have discussed the importance of good staff management and hanging onto those top performers in previous blogs, however, it is not always within your control to hold onto good staff. People will leave, and you must be prepared for this within your business.

It is more important than ever for companies to focus on succession planning at all levels of management. Every day across the country an average of 8,500 people quit their job. They do so for a huge range of reasons; they move onto better opportunities, they relocate to be nearer to family, changes in their personal lives impact career choices, and so on. When a key person within an organisation leaves and there is no succession plan in place, that person’s boss will react to an unexpected situation by moving quickly to plug the gap without necessarily adopting a long-term approach. Filling jobs quickly in this way rarely results in smart long term hiring decisions.

So where do you start? Whilst succession planning will vary from organisation to organisation, there are some best practices that you can implement ensuring that you are developing a strong talent pool that will ensure long-term sustainability:

1. Identify the key positions: This is the first step in the planning process. Identify which roles are critical for the operation of the business, be sure to look at all positions from the top down. Just because a role is a leadership role does not necessarily mean it is a key role.
2. Assess the talent pool: Once positions have been identified, assess the pool of talent surrounding those positions. How deep is that pool and what gaps, short term and long term, are there?
3. Create development or performance plans: The leadership team should develop a plan to prepare high-performing employees for new opportunities. The required mentoring, training and coaching should be quickly identified and an action plan implemented.
4. Incorporate succession planning into the review process: If a manager is not actively grooming a person (or people) to be able to take the core responsibilities of their job, then there is no time like the present to begin! Ensuring mentorship and coaching are embedded into organisational practices builds consistent succession planning across the board as well as improving performance and skills.

Effective succession planning is a huge benefit to your business. Not only do you cultivate ongoing, proactive communication between senior executive and mid-level managers that tracks talent development, but staff are shown a path that allows them to make valuable contributions to the organisation. It will build strength, improve retention, increase engagement, create clear career development paths and save you a lot of time and money when leaders take their final leave.

Eva Grabner
Managing Director
Elite Executive Pty Ltd
www.eliteexecutive.com.au
Cairns | Brisbane | Darwin | Townsville

Eva has amassed over 17 years of experience in the executive and professional recruitment industry and is the sole proprietor of Elite Executive, a thriving executive recruitment firm based in Queensland. As a highly professional and driven Managing Director and Principal Recruiter, she brings a wealth of recruitment expertise across a diverse range of industries. Her background also includes executive leadership and senior management roles on a global scale, showcasing her robust operational acumen.