It can seem like your upper managers will be there forever, but if you're not prepared for the day they leave you could be facing a serious gap in leadership. By planning ahead and ensuring the next leaders are already prepared, you not only help your company, but you save yourself future stress.
Rotman School of Management adjunct professor of organizational behaviour and HR management Hugh Arnold says succession planning helps prevent serious talent gaps, and is also a retention tool for your future leaders.
Video transcript below:
Caitlin Nobes, HRM Online
Caitlin Nobes: As an HR professional it’s easy to get wrapped in short term concerns. But if you are not looking at long term succession planning, then you could be setting your company up for failure. I’m Caitlin Nobes, you are watching HRM TV.
You can’t plan for every role, but it’s vital that organisations think about key positions and how they are preparing the next person for that job. Whether it’s the shoes that are tough to fill or the position that is critical for the company’s success, leaders need to know what those positions are and be working for someone ready to step up.
Hugh Arnold, Rotman School of Management
Hugh Arnold: If a company is going to be successful for the long run, they not only have to be delivering value today, but also preparing themselves for whatever the challenges are going to be in the future. So they have to be anticipating the kinds of skills and capabilities they are going to require in the future and then do a good job of identifying the current talent that has the potential to develop into future roles and then making the investments in those people to prepare them for those roles.
Caitlin Nobes: This development plan has two major benefits for HR. Not only does it mean your organisation is prepared for change, but it’s also a retention tool because your top talent knows they have an important role in the future of the company.
Hugh Arnold: The organisations that are able to retain people are the ones that have a reputation and are seen by people both inside and outside are ones where people have the opportunities to develop themselves to the fullest extent and if people don’t see those opportunities where they are now, they are going to begin looking elsewhere and that’s where really following through on those development plans is fundamentally important. Because at the end of the day, it’s what you actually get to do and how you get to develop, not just that people say, we think you have a lot of potential.
Caitlin Nobes: Succession planning ensures the company doesn’t face serious talent gaps in leadership roles and it’s also a great retention tool. For more on succession planning and career pathing check the links below. I’m Caitlin Nobes, thanks for watching HRM TV.
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Succession planning key for future