Succession Planning

Editor's Note: Implement a strategic plan for developing future leaders.

Marta MoakleyOverview: Succession planning, which is a process for grooming strong internal candidates for leadership positions within the organization, preserves an organization's business goals, corporate culture and core values. As part of an overarching total rewards strategy, succession planning aids in the retention of top performers and key talent within an organization.

Succession planning should be updated on a regular basis, especially in response to fluctuations in employee retention rates and deficiencies in training budgets. Employers should design talent management processes so that top performers are retained, motivated and trained internally, which will in turn minimize outside recruiter fees. Organizations that optimize their succession planning tend to develop reputations as "employers of choice," reaping any consequent market rewards.

Trends: Through the use of specialized analytics software, employers may integrate their succession planning with other total rewards components, including training and development programs. More and more, employers are abandoning paper-based succession efforts in favor of software solutions that integrate internal data such as performance appraisals and individual employee competencies.

Marta Moakley, J.D., Legal Editor

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