Businesses rely on key persons to manage things. In case of a small business, it may be an owner or a founding partner, and in the case of an established business in different verticals, it may be a key management person. What happens if a founding partner is suddenly taken ill or the management person suddenly leaves the organization for greener pastures? This is why you need succession planning. It is a process of identifying and developing family members or employees to step into the shoes of key persons so that in the case of any such aforementioned eventuality business can go on as usual. It provides a safety net to the company. These are the real Benefits of Succession Planning for the owner or the shareholders.
Succession Planning Boosts Productivity
Organisations that incorporate a policy of succession in their policies can expect better productivity from their employees. In simple terms, the opportunity to rise up the ladder and assume a key leadership position in the organization beckons employees in every geography and business vertical. Employees feel obliged to enhance their skills and productivity, lest they fall behind others in the race to assume a key responsibility position. This helps to build a pool of strong leaders in the organization from where you can plan to select future managers and leaders. It also brings with it a whole lot of creative ideas that may stand the company in good stead. This would motivate employees in the lower rung too, since everybody loves to work in an environment that is full of creative ideas and a pursuit for achieving them. Enhanced productivity is one of the Benefits of Succession Planning.
One of the foremost reasons for attrition in organizations is that people don’t like the idea of being stuck in the same position for years. Everybody loves to enhance their career prospects and have a semblance of achievement in their career. This is why organizations offer opportunities to employees so that they can climb up the promotional ladder. Succession planning lets employees have a vision that something positive is going to happen in the future if he sticks to the company. Transparency on promotional avenues is a glue that helps in employee retention.
Hiring is an expensive proposition. It is also time-consuming. All the planning and procedures that culminate into hiring are not only time consuming and expensive, but also exhaustive. Why not dedicate all the energy and time in shaping up future leaders in the organization itself? This can bring down costs too. If you hire new people, you also need to train them. If you let your employees take up new responsibilities, you may not need to train them since they have already gone through the real scenario and have acquired substantial experience.
Immunity to Disasters
Disgruntled employees are a bunch of hazards for organizations. If you dangle the carrot of prospect and promotion to employees, you can avoid the disastrous consequences that may result from disgruntled employees. This is one of the most prominent Benefits of Succession Planning.
Identifies Most Suitable Future Leaders
You set the ball rolling and see how employees respond. People may come up with various ideas and acquire new skills. You can experience a thriving business environment and also identify the most suitable leaders in the making.
These are some of the benefits of Succession Planning, which illustrate why Succession Planning is so important for every organization. If you head an organization and don’t have a succession plan in place, you need to start on that now.