With the baby-boomers retiring, the growth of financial markets that accelerate departures and the global shortage of labour, more and more companies will have to develop an effective succession management program. Will yours be one of them? Here are three key elements to prepare for it.
While in the past companies had an easy time of passing the torch from one employee to the next, they will have to prepare to overcome recruitment difficulties.
This learning process will nonetheless produce positive effects for organizations, says Philippe Mast, CHRP and co-founder of CORTO.REV, a company of headhunters and organizational development consultants. “The most competitive companies are those who develop the most new talents,” he points out.
1. Develop an effective succession management program: target the needs
The specialist suggests beginning by targeting “functions at risk”, the positions which will require replacements in the next few years. “Then the potential of internal employees needs to be analyzed,” he continues. “And if there are none, the company can see if it can select external staff.”
Once candidates have been identified, it is advantageous for the organization to develop the new talents in advance. “When a management position opens, the employee will already by 70% ready to meet the new challenges,” says the co-founder of CORTO.REV. “Then his training will just need to be completed by coaching sessions.”
2. Focus on internal employees
However, care should be taken not to favour the succession to the detriment of employees already working for the company. Such action could lead them to think that there are no opportunities for advancement, which could threaten their motivation and mobilization.
“Organizations need to consider whether they have employees who are sufficiently trained to replace positions and, if not, if there is a way to develop them internally so that they are able to take on new responsibilities,” Philippe Mast insists. Only if this is not the case can recruitment of external candidates be envisaged.
3. Develop a talent development program
In this sense, creating a program for employees around needs and targeted objectives can be an excellent idea. This makes it possible to reiterate that career opportunities are available, a factor that certainly counts in staff performance.
Attention must be paid to the terms used, however. Philippe Mast says that it is preferable to speak of a “talent development program” than a “promotion”, which can wrongly lead the employee to believe he or she will be entitled to a salary increase or new benefits.
If it is established well, this program will allow for a smooth transition. “For someone from the outside, 12 to 18 months is needed for them to feel at ease in their new tasks,” reminds Philippe Mast.