Dive Brief:
- The success of a succession plan is tied to good communication, and HR leaders are key to making sure this happens, according to McLean & Co.’s “Design a High-Value Sucession Planning Program” guide, released Oct. 17.
- To help prepare those who will be facilitating the conversations, the guide walks HR through: 1) Identifying the communicators, such as HR staff, direct people managers, skip-level managers or cross-function leaders; 2) Outlining the communicator’s responsibilities and advising them on how to spot and address retention concerns; and 3) Addressing people managers’ concerns about succession candidates and preparing them for maintaining the overall team dynamic.
- Effective conversations allow organizations “to share the rationale behind succession planning decisions,” Kelly Berte, McLean’s practice lead of HR Research & Advisory Services, said in a statement. “When employees feel as though they understand decision-making, especially around changes that directly impact them, trust is increased and the risk of employees developing their own — sometimes potentially negative — perception is reduced.”
Dive Insight:
2025 is sure to bring more changes to the workplace, what with the potential for a new surge in voluntary quits, the impact of a momentous political election and a potentially severe labor shortage looming in the near future, according to some experts.
But for now, the robust economy and fairly stable workforce make this an opportune time for employers “to take the long view on strategic priorities” and tackle more difficult issues, Eagle Hill Consulting’s CEO Melissa Jezior recently noted.
Succession planning, which plays an integral role in effective talent management, should be one of these priorities, McLean emphasized.
The firm views succession planning as both a process and a program, Berte and HR Research & Advisory Services project manager Justine Czencz told HR Dive in an email.
The planning process involves “identifying, developing and placing the right talent in critical roles” to ensure the organization’s continued performance, Berte and Czencz said.
Additionally, an effective plan requires ongoing program management to deliver the expected results, they pointed out.
Employers should also be aware that succession planning isn’t limited to “talent being targeted for top leadership positions,” Berte and Czencz emphasized.
Instead, employers should use defined criteria to identify roles “crucial to organizational objectives and operational continuity at all levels,” they explained. Planning holistically accomplishes two goals: It prevents crucial roles from being overlooked, and it helps ensure talent is available to move into one of these roles when a vacancy arises, they said.
The stakes are high, McLean cautions. Without effective succession planning, organizations risk disruptions to their daily operations, miss the opportunity to build a talent pipeline from within and risk turnover of potentially the best talent to move into critical roles, Berte and Czencz said.
Conversations matter because without them, succession candidates feel ill-prepared for their target roles and are left with “little or no visibility into career advancement opportunities,” Berte and Czencz pointed out. In past McLean surveys, nearly half (47%) of exiting employees have said they leave based on these opportunities, the firm noted.
When it comes to identifying the right candidates for succession, employers use different approaches, according to a 2022 survey by the Association for Talent Development.
Most said they use performance reviews or nominations from senior leaders, although candidates identified through in-person assessments or nominations from a talent development department were more likely to be high performers, the survey found.
Employers also used mentoring and coaching, stretch assignments and formal learning to identify succession candidates, ATD said.
HR is also keenly involved with succession planning in the context of retiring workers, which McLean addressed in a 2023 report. Prior to an employee’s retirement announcement, this would include identifying critical roles, inventorying skills and forecasting workplace needs, the report explained.
After an employee announces their retirement, HR should focus on ensuring the smooth transfer of knowledge, and post-retirement, HR should focus on keeping alumni employees engaged, according to the report.