Business Succession Planning: What is Business Succession Planning?
What is Business Succession Planning?
Successful succession planning is related to leadership development. It develops a pool of talent so that there are numerous qualified candidates throughout the organization to fill vacancies in leadership. Succession planning used to concentrate on developing leadership at the top level, but now it is building a strong talent base, which helps to increase employee loyalty and ensure the longevity of the company. This strategy requires recruiting qualified talent, creating a talent pool, and instilling loyalty.
Benefits of succession planning:
- Decreased turnover
- Increased employee satisfaction
- Improved commitment to company goals
- Enhanced image of the organization
What does succession planning require?
- Identify the long-term goals and objectives of the business: The long-term goals directly relate to succession planning. Is the company’s goal to grow or maintain its current position? Will it expand into other fields? All of these questions need to be addressed before creating a succession plan.
- Understand the developmental needs of the company and identify employees who fit these needs: The responsibilities of employees change over time. Some positions may be eliminated in the future while others will be added.
- Recognize trends in the workforce and engage employees to build loyalty: Understanding workforce trends will help you predict the needs of your organization. For example, are your key employees nearing retirement? Have you invested in talented employees to take on additional roles?
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