XpertHR Identifies Business Risks in Succession Planning
New Providence, NJ (October 7, 2015) – Nearly half (40%) of respondents to a new XpertHR survey do not engage in succession planning, which can compromise their competitive market position, engender a reactive business environment, and unnecessarily increase talent acquisition costs. Over 500 CHROs, CFOs, General Counsels, business owners, consultants and assistants from various industries took part in the survey.
Of those organizations that do have a formal succession planning process in place, 20% reported having a formal succession planning process for roles critical to the organization, while 8.7% have a process in place for executive-level positions only. In addition:
“Succession planning helps organizations ensure business continuity and performance when top talent exits, skills gaps are identified, or tragedy strikes,” says Marta Moakley, JD, Legal Editor, XpertHR U.S. “Implementing a succession plan helps ensure an organization’s bench strength, solidifies the viability of a corporation beyond certain charismatic executives, and may inform future acquisitions.”
Engaging in succession planning can reduce potential risks to an organization by addressing likely openings in a proactive manner. If done well, succession planning integrates a number of other internal processes, such as talent management and employee retention initiatives, and includes an ability to measure the plan’s results.
HR must take the initiative to ensure that senior management is on board with the process and understands the business risks inherent in failing to engage in succession planning. But it may be difficult to address this topic with management, especially in an unregulated industry with no succession planning requirements for any roles.
“The greatest risk in succession planning is failing to engage in the process at all,” explains Moakley. “A major obstacle could be a reticence to discuss the subject of succession planning, which requires an organization to embrace the inevitability of change inherent in employee retirement, turnover and separation.”
Visit XpertHR to download a free Succession Planning ebook.
XpertHR's online service provides HR professionals with practical compliance tools and comprehensive guidance on federal, state and municipal law, helping employers stay current with evolving and complex employment law issues. XpertHR content is published in association with sister company LexisNexis. XpertHR.com is a unique, easy-to-use solution organized around the day-to-day responsibilities of HR professionals. In addition to smart search features, you can browse through content by task, by topic, or by tool type to help you find just what you need in seconds. Our key features include the popular Employment Law Manual and Liveflo employment workflows.
Beth Brody, fisher VISTA (For XpertHR)
bbrody [@] fisherVista.com