It is imperative for a business to have adequate planning in place, or else they won’t be able to achieve what they want to accomplish for their business. One of the things they need to consider is succession planning. Not all executives are not as excited about this idea – after putting all the long days and hard work into their business, they can be reluctant to consider a replacement.
Whether in a short or long period, succession planning is important. To convince you that this is important for any business, read below:
Saves the Company Resources and Time
Why spend precious time and resources looking for a new executive when you can train one up from your existing employees? This is a good option if you want to save your company’s resources and time. And besides, this can strengthen your business reputation, as you are promoting within your organization.
Expect that your business will be in demand for professionals if they find out that you have a clear succession plan for your employees.
Clears up Any Confusion That May Arise When Deciding on the Successor
Who will be next in line? This can be not very clear, especially if there are a lot of employees in the organization who are qualified and interested in the position. You can quickly identify who to promote through succession planning when the time and need comes. This can also give a clearer expectation to employees and avoid any transition issues when the promotion comes.
Employees are working to have a better future and career. When they know that the company they are currently working with has plans for them, they won’t even try looking for another job. Sure, if they know that their career can grow in your company, there is no reason to leave.
It can be them or one of their colleagues; as long as they see people are growing and getting promoted, they will stick with you and do their best to be considered next in line.
Making the Person Next in Line More Prepared for the New Role
Through succession planning, the person that the company decides to get promoted in the future will be groomed to be ready for the new role. You can even let the person attend executive training and coaching, so as early as possible, they will be exposed to things that he needs to know before the time comes for him to get the promotion.
Studies show that about 50% to 70% of the first-time executives fail to perform the job right in the first 18 months of becoming an executive. Through proper training and coaching, the leader who is soon to be executive can be ready and make them ready far before the promotion occurs. Why wait if you have already identified the right person for the executive position? Do not make them part of the 50 to 70% – it can impact your business significantly.