Succession planning is extremely important to the future of your business. Succession planning is the process of actively planning for employee/owner/director turnover and cultivating the talent already within your business. Succession planning provides a clear path for your company and its future and it ensures that new employees will receive the knowledge and training that they need from their superiors to meet their career goals, and make them ready to fill key positions when the opportunity arises. Let's talk more about why succession planning is so valuable to an organization.
It Provides a Path for the Transfer of Knowledge
Succession planning can be easily accomplished through a network of matching mentors with young workers who need to learn all about the business. This facilitates the knowledge from an experienced worker who knows the ins-and-outs of the job and the company and can pass on valuable skills to the next generation of workers. It ensures that people with the right qualifications will be able to move up the ladder and be ready to take on positions with more responsibility.
It Helps People on a Path to Achieve their Goals
A person can become very frustrated when they feel they aren't valued or being developed at a company. Succession planning takes into account the goals for employees and matches them with their talents and abilities to find a suitable path for them in the company. It encourages people when they know they are on the path to a goal, and they are provided the right training and professional development.
It Puts Proven Employees on a Path to Fill Key Positions
Why spend all of that time, money, and effort to recruit and train people from outside of the company when the talent you need should be right in your ranks! Discovering the aptitudes of your current employees and promoting them to important positions in the business can save a lot of hassle, not to mention you have a tried and tested employee who you know you can trust, instead of hiring someone who you don't know for an important position.
It Reduces the Turmoil of Turnover
When an employee leaves a business, retires, or even has to take a leave of absence, there can be growing pains because of the change. Succession planning can help alleviate the chaos of these types of situations and ensure that there are people ready and willing to fill in the gap and take on the job should they arise. It helps promote stability within an organization and keep service to an optimal level for your customers, even during a period of transition.
Succession planning is just a smart idea for businesses to practice. It ensures the continuance of the business as usual with as little interruption as possible. This is done though mentoring and developing qualified employees to take over important jobs in the company. If your business isn't doing this hopefully you have been convinced why you should start the process and begin succession planning.
Miller Kaplan is a leading CPA providing tax preparation, business management and consulting services, including licensing and royalty audits, 401k plans, trademarks, financial and succession planning for high net worth clients, family offices, healthcare, entertainment, real estates, food and beverage industries. For more information on succession planning, visit Wikipedia.org.