The Importance of Succession Planning and Best Practices

[Pages:25]The Importance of Succession Planning and

Best Practices

Shellie Haroski, SPHR

Questions to consider...

? What percentage of your employees will retire in the next 5 years? 10 years?

? What percentage of your employees are looking for other employment?

? What are you doing about it?

One Approach....

Today's Topics

? What is Succession Planning? ? Why is Succession Planning Important? ? Trends Impacting Marketplace ? Best Practices in Succession Planning ? HR's Role in Planning ? Keys to Success

What is Succession Planning?

A systematic approach to ensuring leadership continuity within an organization by recruiting and/or encouraging

individual employee growth and development.

It's not about having people...it's about having the right people, in the right place, at the right time.

Common Myths About Succession Planning

? External candidates are more qualified, exciting and promising ? The successor has to be ready now ? Succession planning is a single-person event ? Succession planning is a single-occurrence instead of planned

process ? "We have a great internal candidate, we don't need to look

external"

Why the Interest in Succession Planning and Retention?

? Number of people retiring is higher than number of people entering workforce

? Increased costs of external searches ? Loss of organizational memory, "tribal knowledge" ? Tight labor market = shortage of top talent; complexities at executive

level ? Retention of existing talent ? Future of work ? different needs for generations of employees ? Decreased employee loyalty leads to increased turnover

Workforce Trends

? Leadership vacancies ? 72% of companies predict leadership vacancies in the next 5 years*

? Shifting workforce demographics ? baby boomers are transitioning out of workforce, knowledge loss/gap ? Shortfall in number of future leaders ? Increase in attrition in executive level positions

? Continued "rightsizing", downsizing, reorganizations ? 44% of workers aged 45-59 say they will retire before 65 ? 10% of workers aged 50-59 planning to leave full time jobs, will move into

part time roles within 2 years of retirement

*Corporate Leadership Council research (reported by The Gallup Organization)

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