Sean Pomeroy
Often, there doesn’t seem enough hours in the day to complete all of the daily priorities we’d like to. This usually results shoving smaller, long-term projects in the corner to collect dust. While planning is tedious, it should never be last priority; especially when creating succession plans. Let’s say you continuously push planning a succession program to the corner and one day, a top leader in your organization decides to leave and not come back? A good succession plan gives you a plan during a time of chaos and transition and can be used whether you’re losing talent or not. Here are some Do’s and Don’ts to help you create a succession plan for the future.
Do:
Hire internally
The average external candidate costs 1.7 times more than simply promoting an internal employee. This also creates stronger company culture because the employees are already familiar with one another and have worked together in the past. Hiring or promoting within the company also reduces cost for on-boarding and training. This seems like a no-brainer but hiring from the outside often seems like an easy out when a company is pressed for talent quickly.
Invest time in high potentials
It’s important to be mindful of what your employees are accomplishing and identifying areas they have improved in over the course of their employment. Why? Because it will improve judgment on who has the potential to take on another position sometime down the road. Another way to monitor productivity and job succession is by conducting frequent performance reviews between an individual employee and the higher ups. This gives both parties the opportunity to brief the past few months and discuss what has improved, what can be improved upon and areas the employee would like to move into. Keep in mind that goal tracking software, trackable learning management systems and reviews from employee colleagues can all be aligned to create a 360 degree portrait of high-potential employees (HIPOs) and those approaching a HIPO status.
Develop BASKET
BASKET is a set of guidelines employers can give to their employees as a set of expectations to achieve in order to move up within the company.
B: Behavior
A: Attitude
S: Skills
K: Knowledge
E: Experience
T: Talent
BASKET can act as a friendly reminder to employees on what they should implement into every workday, assignment, client call, etc. It also sets parameters that don’t just include the ability to do one’s job, but an overall picture of a potential leader.
Assess gaps
BASKET can be addressed within the performance review to seek potential for movement. When sitting down with employees for a performance review, set reasonable, reachable goals that you and the employee can agree on. This is another way to give employees something to reach for and also diminishes skill gaps. Even past the on-boarding stage there should be ongoing training for new hires. While this may initially slow the progress of certain people down, it creates a culture of learning and sharing that becomes invaluable when seeking to address skills gaps not fillable by the current workforce.
Maintain diversity
Many times when managers choose employees to promote and mentor, they will pick a candidate that resembles them. In order to create a more balanced workflow, managers should mentor those who differ from them. This can bring diversity of thought to projects and the broader culture within the company. Use assessment tools and a solid diversity sourcing team to accomplish this. In this case, it does start with hiring.
Don’t:
Overlook everyone else
While it is important to address those who tend to perform at higher rates, consider every employee to be important. Sometimes ignoring an individual can cause turnover rates due to lack of attention which can cost an employer up to 20% of their salary. Look at each employee as a potential candidate for promotion, even if it is a lateral move. Again, performance reviews, mentors and colleague panels or project teams can help managers identify those who could be HIPOs in a different situation.
Hire externally
General necessary expenses for hiring an external employee include:
- Advertising
- Referral bonuses to employees
- Travel costs
- Relocation costs
- Agency fees
- On-boarding costs
- Training budget
All of these procedures necessary to hire a new employee amounts to 90% of the cost to hire. Hiring internally eliminates all of these costs and processes because the employee is already working for the company. It’s also the very definition of succession planning. Therefore, promoting employees internally is a must.
Put Up Roadblocks
Roadblocks for potential candidates could be other executives keeping these candidates from moving up. Keep your eyes on two to three potential promotees. Avoid roadblocks by offering new positions and rotational assignments to maintain a flow of production. Again, project teams and lateral movement can be just as productive as a direct line to the top, allowing employees to experience different parts of the organization.
Lack of communication
After you spot your handful of potential promotees, make sure they are on board for forward-moving action. Not everyone is willing to move up or take on leadership roles, and the most common managerial pitfall is promoting a skilled worker to management and watching his or her productivity decline rapidly. Failing to communicate with your candidates can ruin a succession plan. Keep your intentions transparent to your coworkers and ask leading questions about leadership when conducting frequent performance reviews.
Of course, all of this should be written down. Encourage employees to document their processes and discuss them with relevant team members and managers to ensure your succession planning initiatives don’t fall by the wayside.
What have you found to be successful or not so successful in succession management?
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