Most successful organizations have numerous influential employees who have an outsized influence on company operations. Executives, business owners and other high-impact employees may have a contractual obligation to create a succession plan.
Succession planning involves identifying job responsibilities and potential candidates to take over a position within an organization. Employers make succession planning mandatory to protect the company. When workers create the succession plans required by the businesses that hire them, the company can derive several key benefits from that process.
Preventing disruptive transitions
When an executive suddenly steps down or becomes incapable of performing their job, the organization may struggle to replace them. Having a key role vacant can lead to chaos. The company could lose clients or see a significant increase in inefficiency. Appropriate succession planning makes it easier to transition to a new professional holding a key leadership role.
Promoting upward mobility
For many talented and dedicated workers, advancement opportunities are a key consideration when deciding where they work. The best and brightest want opportunities to move into the upper echelons of an organization if they demonstrate their capabilities and loyalty to the company. Succession planning often involves the identification of internal candidates and advance training to ensure that they can step into a role when one becomes available. Workers who start receiving training for future advancement may feel more inclined to stay with the business.
Promoting awareness
Executives and others required to establish succession plans have to carefully consider their role in an organization. They may provide details not currently available in a job description or training materials. In theory, the process of creating a succession plan in the first year or two after taking a position may make an executive or similar professional a more efficient and effective employee.
Businesses working with executives currently drafting succession plans or adapting employment contracts to include succession planning requirements can help businesses avoid challenges during unexpected transitions. Preparing for the unexpected can help companies weather even the most complex circumstances.