Succession Planning in 2024 - What's Changed?

It’s not uncommon for CHROs or VPs to have successors lined up for executive-level roles. But imagine if they had this process and strategy for each level (manager and above) for the entire organization. Recruiters often rely on external hiring to fill positions, but focusing on internal candidates can save time and money. Instead of looking for these unicorn candidates once a letter of resignation, retirement notice, or reorg occurs, it's critical to consistently survey the landscape of viable options.

I recently spoke with the HR/Talent Team at a manufacturer that had 16 managers and directors at the age of 65+ and they feared that their inevitable retirement (hopefully not all at once) would leave a huge knowledge and productivity gap in the organization. Succession planning has moved to the top of the priority list for many organizations and this edition of "Engineering 365" will work through those concerns and devise strategies to help you get from where you are today to where you'd like to be.

The Role of Succession Planning

Succession planning is a proactive approach to leadership development that benefits both the organization and its employees. When done effectively, succession planning can:

• Ensure Continuity: Smooth transitions minimize disruptions, helping the organization maintain its stability and performance during leadership changes.
• Develop Talent: It identifies and develops high-potential employees, providing them with the necessary skills and experiences to take on leadership roles.
• Improve Culture: Employees appreciate opportunities for growth and advancement within the company, which can lead to higher job satisfaction and retention.
• Enhance Innovation: A pipeline of capable leaders can bring fresh perspectives and ideas to the organization, driving innovation and adaptability.

Succession planning should be a group effort involving a range of key stakeholders. Most notably, the board of directors and CEO are often responsible for identifying and selecting leaders for C-Suite roles. However, HR and talent managers are also vital parts of this process. They’re often responsible for building, implementing, and managing the succession plan — including development and onboarding programs — and ensuring the plan remains aligned with business goals.

Here are a few steps to consider when designing a high-impact succession plan for manager-level+ successors:

• Define organizational goals that will guide your succession plan (e.g., increasing your organization’s market share by a certain percentage within the next five years).
• Forecast external and internal business challenges that the company may face in the next 3-5 years, (e.g., AI will continue to disrupt the industry in X, Y, and Z ways).
• Identify roles that will need succession plans based on turnover risk and potential impact on organizational goals and challenges.
• Outline the capabilities leaders in those roles will need to succeed.
• Assess the skills of current employees to locate those who may be well-suited for succession.
• Prepare potential successors with leadership development opportunities and personalized coaching.
• Measure the impact of those leadership development programs and optimize as needed.

SHRM notes that “Succession planning is used to anticipate the future needs of the organization and to assist in finding, assessing and developing the human capital necessary to realize the strategy of the organization.” There is nothing short-term about succession planning, nor should there be.

Moving towards a forward-thinking skills-based succession model is more than just a strategy for filling future leadership roles; it's a critical investment in your organization's long-term success. By proactively developing talent, fostering diversity, leveraging technology, and maintaining open communication, you can ensure that your team is well-prepared for the challenges ahead. Don't wait for a resignation to start thinking about succession planning— it deserves a strategy and your attention, today.

Check out our new 'Elite Candidate Attraction' Tool. It's designed to give HR teams within small to mid-sized Manufacturers', insight into what they can do to ensure the most efficient hiring strategy is in place, at all times. You will also be provided a customized report that you can share with your team. Check it out via the link below.

https://cts-talentscorecard.scoreapp.com

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