Why succession planning is essential for sustained company growth
March 15, 2022at4:00 AM
Companies and business owners want to see their employees succeed and thrive.
Succession planning is one way to make sure your team continues to find and explore growth opportunities.
If you’ve worked in human resources, this term is likely familiar to you. However, if you’re running various aspects of your business and need to handle employee relations on your own, this may be new information.
Succession planning is the process of training employees to grow into larger roles. Maybe you hope a customer success employee eventually becomes a manager, or perhaps you want a regional manager to step into an upper management role. Both of these situations require planning. Effective succession planning keeps increases tenure and reduces turnover, as well as gives employees a career trajectory.
Here are some things you should keep in mind about succession planning and why succession planning is essential for sustained company growth.
It promotes positive company moral
As employees start to find their place at the workplace, they also start to explore what their future looks like with the company. They may want to show their enthusiasm for leadership or potentially cross-training for other roles. By implementing succession planning early on, you can let employees know how they can move up the company ladder. This will encourage your team to work towards their goals and promotes an overall positive attitude towards creating a long-term partnership with employees.
It maintains promising talent within the company
One of the main reasons people leave their job is because they didn’t have the opportunity or information on how to move up the company ladder. Employees want to learn, grow and earn more over time, but if they don’t have the ability to do so, they’ll look for the option elsewhere. Creating a succession planning program will let employees know how valuable their talents are and will help them identify their growth areas as well as their strengths. This will help retain talent, reduce turnover, and increase the team's overall strength.
It encourages diversity
Another reason people decide to move to other jobs is due to a lack of diversity. Studies show that workplaces that consistently diversify their workforce have higher retention rates and lower instances of workplace conflict. Giving employees the opportunity to move up in their work opens positions for other new teammates, which in turn can increase diversity throughout the workplace. This is especially important in this day and age and should not be overlooked.
While succession planning may seem like a lofty goal or even a less important goal compared to other immediate needs, it’s a long-term investment that’s well worth the time and energy. By letting your employees know you value them and want them to succeed at your company, you’re showing that you want to maintain and nurture top talent.
Here at SGA Talent, we believe in helping employers develop success planning programs. Our experienced team will show you how to create a succession planning structure that you can use for new and existing employees. And if you have questions about the process, we’re here to help. Contact us today to learn more!