Last 3 decades competition has increased, there is a shortage of talent and an increase in the requirement of senior positions. The HR recruiting managers were finding it difficult to get people from outside or promote employees from within because employees were not groomed to take higher responsibilities.
Continuity is the key to survival in this tough business world and succession management is the right way to keep the momentum going without breaking the growing speed of a business or an organization. Succession management is all about selecting and developing future managers. Succession management prepares you for any staffing challenge. Succession Management or Succession Planning is the preparation for the replacement of one high ranking employee by another, this replacement could be due to various reasons like retirement or resignation.
Succession management is different from replacement, here strategic planning and training are provided to the employee to take the place of the previous one. It is well-planned and organized. It ensures continuing leadership by promoting and molding talent from within the organization.
In succession management the new employee is prepared to replace the previous employee with full expertise so that organization would not realize any kind of loss due to the replacement of the old one.
With the succession management it is easy to fill the gap that occurs due to resignation or retirement. Secondly it also helps in identifying the hidden talents among the employees and provides them a chance to prove their caliber for their career growth.
The best way to make succession management successful is to follow it as a development oriented rather than following it for replacement. Consider it as an opportunity to develop a fresh lot of well-trained and groomed employees who will serve for the betterment of the organization.
Succession management is the need of the hour. Company should keep discussing with the talent department about the progress of the employees so that in case of an emergency an organization can easily find a replacement. Today when the level of uncertainty is high it is a smart move to prepare a back-up for smooth running of the business in case of sudden changes in the organizations.
It is the responsibility of the boss and senior manager to prepare the future managers. Identify the best talent and groom it in the right way for the better and a promising future of the company. Many smart organizations have made succession management part of their company culture and they are willingly supporting the process of succession management.
The most effective succession processes are disciplined, yet flexible, open, inclusive, and owned by management. Earlier the concept of succession management was popular among entrepreneurs where a business was managed by a family and it was passed from one generation to another.
A survey revealed that hiring managers report that it is complicated to recruit the qualified employees 12 months prior to taking up the place of a senior. Gradually it was felt by many organizations that for the smooth running and easy management of the organization and business it is important to work on succession management so that a void will not hinder the path of progress. The management can follow their own succession management plan for their organization depending on their future requirement.
Succession management helps in identifying potential caliber and moulding it in the right direction. This not only helps organizations in surviving, but also motivates employees in giving their best. The employees are the powerhouse for any organization, a good manager knows how to make best use of available resources. It is the task of the manager to find out the best among the rest from performance reports.
There are many organizations that consider that succession management is useful for large organizations but the role of succession management is crucial for all kinds and size of organizations. To effectively implement a succession plan, one needs to include/consider a number of elements
Now the latest trend is that even at a level within the department or team, the leader or head is asked to identify the employees who can take his place when he moves to a higher position.
Companies that fail to realize the need and importance of succession management often face loss of growth and financial profit.