People management often involves planning for hiring and retention. But surprise exits are frequently overlooked. More than 74% of leaders report they are unprepared and lack the training for the challenges they face in their roles.
That’s where succession planning comes in. It’s an important process, so your business doesn’t miss a beat when key players leave. With proactive succession planning, you can be prepared for unforeseen circumstances, identify future leaders, bridge skills gaps and keep your team on track.
What is Succession Planning?
Succession planning is a strategy used to help identify key roles in a team or business that, when vacant, need to be filled quickly. These roles could be in leadership, such as CEO or department head, or mid-level, such as project manager or team leader. It’s a proactive approach to building a successful team that fits into a broader people strategy essential for long-term success.
Why you need a succession plan
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![8 - 12 weeks is how long it takes to replace a ‘knowledge worker’. 1-2 months is when the replacement gets to full ‘productivity mode’.]()
1. Limit disruptions to projects and productivity
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![£4.4bn is how much the skills gap costs UK businesses. It includes: recruitment fees, temporary staffing, increased salaries and hiring at a lower level to then bring them up to speed.]()
2. Protects you from loss of revenue or knowledge
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![3.4 is how many times more likely a business is to outperform its competitors when they have a strong succession plan in place. - Deloitte]()
3. Manage any skill gaps on your team.
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![43% is how much more job descriptions will attract candidates when they clearly define skills and requirements. - LinkedIn]()
4. Allows you to recruit smarter with clear needs identified
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5. Boosts retention with clear career paths
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![34% is how much higher retention is among employees who have opportunities for professional development.]()
6. Increases morale with more future leadership development opportunities
The importance of succession planning in recruitment
The opportunity to hire on your team can be overwhelming. You might find yourself looking for a unicorn in the industry – someone who can do it all. Knowing how to future-proof your workforce with succession planning will give you a step above the competition. Your time and hiring cost will be reduced as you have a clearer vision of the professionals you need to help your team excel.
How to Start Succession Planning
1. Assess your team
Map out your team’s skills and their importance. Where are gaps critical for your team? Using a tool like Skills Gap Analysis to identify areas for growth supports your action plan to develop and hire in your team.
2. Set clear objectives
Having a clear focus lets you define the roles and skills that are key to achieving success. Our blog provides some ways to identify how to build a high performing team.
3. Develop your team
Your team should be your first point of focus. What training and mentoring programs can you create to prepare the people with the potential on your team to step up? This investment in talent development will make your team feel valued and invested in their growth.
4. Consider recruitment
No team is perfect. When internal development isn’t enough, use strategic hiring to bring the right professionals to complement your existing team.
Where succession planning can go wrong
Even the best plans can fail. Here are the everyday things people miss so you can avoid them.
- Overlooking mid-level talent
Focusing solely on senior leaders can lead to the misjudgement of your mid-level people who have the transferable skills and potential to step up.
- Failing to evolve the plan
Regularly review and refine your plan and strategies as the business evolves. What was once a key role last year might not be that important the next. This adaptability is key to staying ahead.
- Neglecting hybrid teams
If your team is remote or hybrid, ensure your plan accounts for unique challenges like onboarding and collaboration.
- Thinking its for large businesses only
There is also an assumption that succession planning isn’t for SMEs. With leaner teams, every role is critical, making planning even more important – especially for those with ambitious growth plans.
- Ignoring knowledge transfer
You should also plan for how you will capture and share knowledge from the professionals in key roles. This ensure continuity and can address and experience concerns you have when filling the roles.
How do you know succession planning has worked?
To build a success plan, you need to be able to see how successful it is so you can keep improving. Track metrics like:
- turnover and retention rates
- the cost per hire and time to hire
- uptake of learning and development programmes
- employee engagement and satisfaction surveys
- how many roles are filled internally.
By using tools like Skills Gap Analysis, you will be able to sidestep these challenges.
Succession planning is your safety net and your springboard. It’s about more than preparing for the unexpected; it’s about building a resilient team ready to drive your business forward.
With only 19% of businesses implementing a written skills plan for their workforce last year, be strategically ahead of your competition. Because with the right strategy, you’ll protect your business and position it for long-term success.
Sources:
3.4 is how many times more likely a business is to outperform its competitors when they have a strong succession plan in place. – Deloitte
43% is how much more job descriptions will attract candidates when they clearly define skills and requirements. – LinkedIn
94% of employees would stay longer at a company that invests in their careers.