Back To CourseSenior Professional in Human Resources - International (SPHRi): Exam Prep & Study Guide
10 chapters | 87 lessons
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Noel has taught college Accounting and a host of other related topics and has a dual Master's Degree in Accounting/Finance. She is currently working on her Doctoral Degree.
All organizations depend on staff to carry out the missions, goals and strategic objectives of the business. And some organizations depend on highly skilled staff members or key employees to carry out the most critical tasks. Yet, many organizational leaders do not have a plan in place in case one of their key employees leaves the company.
Kyle is a human resource manager who reviews executive staffing levels every quarter for his company. Kyle discovers there are three top executives who are critical to the organization and have indicated a desire to retire within a few years. What does this mean for Kyle's organization? What will happen if all three executives leave the company at the same time?
Kyle needs to develop a succession plan to address the potential retirement of his most senior staff members. A succession plan is a process where an organization, most likely through its human resources department, identifies the actions its need to take to address changes that could occur when top leaders leave the company. A succession plan focuses on the most senior leaders of the company and addresses how the company should respond when they exit, including identifying a method to replace the senior staff member with an equally qualified replacement.
Senior staff members hold key positions that are most critical to an organization's operations. And because the senior staff also possesses a highly unique skill set, it can be difficult to replace them quickly with people who are equally qualified.
Kyle is worried about being able to replace all three executives. Even if they do not decide to leave the company right away, Kyle realizes he must develop a succession plan to address how the organization will handle the loss of any senior staff member in the future. Kyle knows his organization has highly skilled employees who haven't reached the executive level. He begins to research how to keep developing their skills so the company can promote the most qualified employees to the next level in their career.
Kyle will need to include some basic components in his plan. First, all organizations should assess current and future staffing levels and compare their current staff to the kind of staff they'll need to meet their strategic goals and objectives. The plan should include how the organization will identify future leaders, as well as how it will groom the next senior leader to take on his new responsibilities shortly after promotion.
The succession plan should also include a step-by-step process for coaching and mentorship in targeted areas for the particular job function. And it should address current development opportunities for the potential successor, even before a position is granted, so the candidate can begin the training process in advance. Finally, the plan should have a communication strategy to outline how the organization will announce the change in senior leadership.
Human resources managers often work with the board of directors of an organization on its succession plan. The succession plan benefits the organization because it provides the company leadership with a process to follow when a critical role within the company becomes vacant. If the organization follows the plan, leaders can minimize the risk of leaving a critical role open for a long period. The plan should help leaders identify a replacement who has already been groomed to do the job and can get up to speed in a short period.
A succession plan also helps the existing employees of the organization by giving highly skilled employees an opportunity for promotion from within. Employees can take the opportunity for professional development and if a company promotes senior leaders from within the organization, the employees get a chance to become future leaders.
A succession plan is a plan used by senior leaders and human resource managers to identify a strategy to replace critical roles within the organization. A succession plan should include a process to identify employees who have the potential to be promoted into senior roles. The plan should also address how the company plans to train and groom potential candidates, as well as how they'll communicate the role change. If organizations don't have a succession plan in place, the company may have critical roles vacant longer than anticipated. And if key leadership roles are not filled promptly, the organization puts operations at risk.
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