Why is everyone talking about… succession planning?

When Joe Biden stepped down from his campaign for US president last week and Kamala Harris emerged primed to take his place, it was a stark reminder for organisations everywhere of the importance of succession planning.

When a leader steps down, it’s vital you have someone capable to step up. This lesson was especially pertinent within the context of HIGHER’s State of Talent Acquisition 2024 report, which was also published last week.

The report revealed that recruiters and those working in talent acquisition may not be preparing adequately for the inevitable fact that important leaders can and do move on from your organisation.

Specifically, it found that the majority of talent acquisition leaders only plan from three (20%) to six months (35%) ahead. Meanwhile only a third (34%) of leaders say they look as far as a full year ahead (which would be the ideal timeframe) and 11% aren’t planning ahead at all.

“Business succession planning involves smoothly passing on ownership and control. It is crucial to consider risks and ensure that the business stays in good hands with a solid plan” says Reggie Young, Board Member of ExitAdvisor.io and member of Forbes Advisory Council.

And you’ll need to plan ahead for multiple leaders, he explains: “It's key to have succession plans for all top leaders, not just the CEO. This keeps the business running smoothly and ensures everyone knows who will lead in the future. Understanding the complex nature of succession planning helps your business prepare for a smooth change. This ensures the company keeps going strong and leadership stays solid over time.”

Whether you think you’ll need to rely mainly on internal or external talent, taking steps to establish an effective talent pool for your succession planning is crucial. Here’s what else we’d advise for HR teams looking to ensure they’re properly prepared for their next leader’s departure:

• Identify your most critical roles: Determine which positions (including outside your C-suite) are essential to the business's success and how their successor should support the organisation’s strategic goals.

• Start the development now: Evaluate potential successors’ skills, knowledge and abilities to determine their readiness for leadership roles. Develop tailored development plans to bridge any skill gaps.

• Foster a culture of development: Offer employees opportunities to work on challenging projects and gain exposure to different areas of the business. Implement a robust mentorship and coaching program.

• Build a diverse talent pipeline: Ensure succession plans reflect the organisation's commitment to diversity and inclusion. Identify and address potential biases in the talent assessment and succession planning process.

• The succession planning process in 7 simple steps

• Why is everyone talking about… female CEOs?

• How do you build a proper talent management strategy?

That's all for this week's edition of Personio Pulse: This Week in HR. Check back next week as we continue to dissect the latest trends impacting the ways we work. 

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