Succession planning is often consequential to the future of a business. Those who start their own businesses often reach the conclusion that they need to establish the succession plan for their own protection. Executives and other power players at organizations are often subject to contractual obligations that make creating a succession plan mandatory.
While drafting a succession plan can seem frustrating to those tasked with doing so, the organization that employs them may derive an assortment of benefits from their efforts. The following are some of the ways in which succession planning can contribute to the continued success of an organization.
Preventing transitional disruptions
The single most important benefit of succession planning is its ability to prevent messy, disruptive transitions. When someone in a key position loses their job, dies or becomes incapable of working, the whole organization may struggle. The higher-ranking a worker is and the less transparent their job responsibilities are, the more likely it is for the company to experience major disruptions when they are suddenly unable to perform their job. Succession planning helps ensure that the company can identify the right candidates and get them up to speed quickly to avoid a messy transition.
Promoting diversity and inclusion efforts
Succession planning often involves identifying potential candidates and offering them proactive training. Therefore, succession planning can be an opportunity for a company to promote its diversity, equity and inclusion goals. Training workers for promotions and new roles within the company can help show that the organization has a deep commitment to promoting from within and valuing workers based on skill and ability rather than protected characteristics.
Improving employee retention
It can take years for major advancement opportunities to arise. When they do, there could be numerous people vying for the same role. Many of the best workers at a company may decide to move on before positions open. When organizations begin training candidates well ahead of time, they may have more incentive to stay with the business and wait for an opportunity.
Creating company policies that prioritize succession planning and implementing succession planning concepts into overall organizational practices can be consequential when it comes to the potential for success of a business. Businesses updating workplace policies or carrying out succession plans may need assistance to ensure legal compliance and protection throughout that process, and that’s okay.