HR’s Guide to Succession Planning: 5 Questions to Create a Future-Proof Plan

Succession planning—the process of planning and preparing for employee departure in critical roles—can help keep leadership transitions smooth.?

It asks the question, “If my best employee leaves tomorrow, who will take over their role without causing a significant disturbance to the rest of the organization?” Succession planning ensures a plan is in place if and when vital employees leave.?

In a multigenerational workforce where many executives are poised to retire within the next few years, succession planning should occur sooner rather than later.?

What Is Succession Planning and Why Is It Important?

Succession planning is a pillar of strategic human resource management (SHRM) that considers what may happen to an organization in the future and gives HR a proactive plan to prepare.?

Succession planning involves identifying and developing existing talent who can step into key roles, such as C-suite positions, to keep the organization running smoothly.

For any company that wants to stay resilient and adaptable, succession planning is essential because it:

• Promotes leadership continuity
• Builds organizational resilience
• Prioritizes employee development
• Helps attract and retain employees
• Saves time and money for organizations

5 Questions To Develop an Effective Succession Plan

Of course, there is no one-size-fits-all approach to succession planning. The specifics will come down to the unique needs of your organization and your business needs.?

However, when developing a succession plan, there are some critical questions you can ask to help create the most effective plan possible.

1. What are the business’s current and future needs?

Look at current business needs and consider potential future goals.?

Specifically, look at the critical roles within your organization that would have a significant impact on operations if they left. Consider which employees are in those roles and how their absence might affect the future needs of the business.?

HR can look at market trends and predictions, historical organizational changes, and employee data to get a full view of the organization and forecast future needs.

2. What are the goals of the plan and the criteria for success?

Once you understand where your organization currently is and where you want it to go, you can set objective goals, deadlines, and criteria for succession plans.?

Consider what your end goals are, including what an employee needs to succeed in a new role. Consider following the SMART framework (specific, measurable, achievable, relevant, time-bound) to set objective goals and get measurable results.?

3. Which talent could be suitable for succession roles?

When thinking about top talent and potential successors, consider three things: An employee’s potential, performance, and skillset.?

Once talent has been identified, you should communicate with employees to make sure you’re on the same page and employees are on board with the plan. Otherwise, you may risk a miscommunication that can make the entire plan fall apart.?

Plus, keeping employees informed throughout the process can help boost morale and ensure a smoother succession process when the time comes.

4. Where are the skill gaps that must be closed??

Assess employees and identify skills gaps that may hinder the succession process. A solid employee development plan can make or break a succession plan because it ensures that employees have what it takes to succeed in their new role.?

Consider different development opportunities, such as:

• Coaching or mentoring from leaders, especially those with similar duties as the potential role
• Routine continuous learning, such as classes or certifications for technical skills
• Leadership development opportunities to help hone soft skills

5. How can the succession plan be better??

Measuring results and iterating on the succession planning process is imperative to getting better results and developing better leaders.?

Take note of issues, such as disruptions in operations during the transition process and any roadblocks encountered. From there, you can work to iterate on your succession strategy and continue to monitor results.?

It can also be important to gather feedback and get insight into how employees and leaders felt about the process.??

Best Practices For Succession Planning

Here are a few general best practices to make sure your succession plan is effective, efficient, and realistic.?

• Use HR tools such as AI to lessen the load on HR, such as using generative AI to create and tailor employee development plans
• Look beyond employees that are closest in rank to identify high-potential employees who may be otherwise overlooked?
• Conduct trial runs to help identify areas that need to be worked on before the successor takes on the new role.??

Conclusion

Succession planning is a critical part of a SHRM approach and can help future-proof the business. It ensures that both current and future needs are addressed and that high performers are being developed into exceptional leaders.?

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