A recent SHRM / Globoforce Employee Recognition survey has revealed that over two-fifths (41%) of businesses that took part, cite succession planning as one of the top HR challenges. However, succession planning is one of the most important problems to tackle when any business wants to continue in the future, after a senior member of staff leaves their post.
In an ideal world for businesses, handovers from one manager to another would be smooth, seamless and have minimal impact on both the business and its shareholders.
Unfortunately, this isn’t always the case, as illness and other factors can throw a spanner into the works; but with a succession plan in place from the start, even at short notice a business can continue to move forward with little disruption.
Part of a successful succession plan is looking at the long-term direction of the business, and devising plans – through regular meetings and discussions with senior management and staff – as to how to get there.
In addition, they will also have identified possible successors for senior positions, and ensured that they are undergoing the right training and career paths to ensure that they will succeed in a senior position.
By carrying out these simple steps alone within the succession planning, businesses will be guaranteed to have an ongoing supply of well trained, well-motivated people, who are not only ready, but also willing to step into key positions as and when needed; whilst also having defined career paths for all staff, which will help the company recruit and retain a better calibre of staff.
Succession planning isn’t something which will happen overnight, instead it is an ongoing process, which involves all staff within the business in one form or another, and should continually be revised, to ensure that the business is ready for any eventuality.
However, those businesses who successfully manage, monitor and implement a succession plan will reap the benefits in both the long and short-term; and if you want to ensure that your business is on the right footing with its succession plans, speak to the team at Milsted Langdon.
Milsted Langdon Director, Peter Groves, specialises in strategic business and tax planning, services for high net worth individuals and professionals.