HR’s Role In Succession Planning

Succession planning has become a key aspect for the smooth functioning of the organisation when it comes to its long-term growth and sustainability. It is a method that prepares an organisation in advance for when key employees leave. This could be due to employees retiring, resigning or leaving for other reasons.

It was reported that the average employee turnover rate sat at 15% in 2023, although this did vary across industries. According to BuildEmpire, more than 40,000 UK employees entered the search term ‘resignation letter templates’ into Google monthly.

This certainly does raise a cause for concern for companies who may be unaware that some employees want to leave. Moreover, not having a plan of action in place for this can disrupt business activities until the position is filled.

The HR department will play a significant role in developing the succession strategy and making sure that it is in accordance with the company’s vision and mission.

Companies that offer human resources software solutions in the UK include:

1. Rippling
2. Deel
3. BrightHR
4. Factorial

 

What Does Succession Planning Entail?

 

In a nutshell, succession planning involves identifying the internal personnel who are capable of filling in for high-level positions in the organisation. Their primary focus is to ensure that there is business continuity by preparing high-potential employees for critical roles that may open in the future.

It isn’t to be confused with replacement planning, which aims to fill open positions as quickly as possible. Succession planning is far more than just replacing an outgoing employee.

It is about nurturing people and developing long-term sustainable leadership capabilities in management as well as in the industry as a whole.

 

 

Why Businesses Should Consider Succession Planning

 

There are a number of reasons as to why succession planning shouldn’t be overlooked by management, and especially HR departments:

 

• It offers a competitive advantage: when a company has a competent and ready-to-go leadership pipeline, it can keep the company ahead of the curve and competitors.
• It provides stability within the company: developing future leaders ahead of time ensures business continuity and a smooth takeover process when it does happen.
• It improves retention: if employees see clear pathways for career progression and professional growth initiatives at their company, they tend to stay for a longer period of time.

 

What Is HR’s Role?

 

One of the main contributors to a successful succession planning process is the HR department. Let’s take a look at how they contribute to the planning and guide management throughout the process.

 

Identify Employees With Potential

 

The HR department is responsible for assessing the capabilities of existing employees to determine who could fulfil future business leadership positions. In this regard, performance, leadership skills and alignment with corporate culture are usually evaluated to see who would be the best fit.

In this case, performance is not the only aspect that matters, potential holds equal value. The HR department looks at the individuals who possess not only the capacity to perform and succeed at their existing position but also the desire to learn, adjust, and grow in the future.

 

Determine Which Roles Need To Be Considered

 

One of the first tasks of HR is to determine which positions require planning for the future. Not every role calls for a formal succession plan, but certain key positions such as executive leadership, heads of departments, and specialised technical roles tend to do so.

Working with the leaders of each department, HR will usually rank the various roles according to their importance in the context of the business strategy, its sustainability, and potential for expansion.

 

 

Develop And Oversee Training Programs

 

Once individuals with high potential are recognised, it becomes the responsibility of HR to formulate customised development strategies that address the goals of the individual as well as fulfil the leadership requirements of the company.

In this instance, HR will rotate employees across the departments or give them specific assignments to test their capabilities. This enables employees with high potential to gain wider perspectives of various functions and improves their ability to lead effectively.

 

Oversee That The Plan Aligns With Company Objectives

 

In order for a succession planning process to be effective, it has to be integrated with the long-term goals of the company. It is therefore the responsibility of HR that the nurturing of leaders is aligned with the core values and aspirations of the business.

It’s important to note that identifying potential successors won’t solely rely on their capabilities and knowledge, but also their fit within the culture of the company.

 

Ongoing Monitoring And Adjustment Of Succession Plan

 

Succession planning is not a once-off event, but an ongoing practice that needs tracking and tweaking in order to be effective. HR is accountable for the periodic assessment of succession plans to make sure that they are current and applicable.

This usually involves reviewing the training programs of employees and monitoring the company’s retention rate to measure the succession plan’s effectiveness.