The future of a business can be scary, even when that business is successful. Sometimes, organizations that are doing well feel an even more overwhelming pressure to get the right plan in place and avoid any succession problems. The good news is, for every CEO and business owner who develops a succession plan, there is a talent management team thrilled to see it.
It’s now impossible to go two search results into a workforce related inquiry without seeing the word Millennial. No matter the feelings harbored about these candidates born between 1981 and 1997, the truth remains that in 10 years, Millennials will make up 75% of the workforce. Currently, workers in this generation admit that their level of employee engagement will increase if their employer has a succession plan in place. Millennials are not alone either. Employees aged 65 and older are the generation who feels the least affected by a company’s succession plan policy and yet, still an incredible 79% are left positively affected.
No Matter the Size, Direction is Key
Thankfully, companies have caught on to the implications of such numbers and in turn have some plan of action to ensure the future of their business. Corporate training spend has increased 12% in the last few years. A Human Capital Media Advisory Group found that about 70% of companies participate in some form of succession planning. Even more surprising, 40% of those companies with succession plans are small to medium sized businesses.
The theory of why small and medium sized businesses are succeeding in this future planning effort is that it is difficult to put all the various people who work in larger companies together. It becomes increasingly difficult to organize all the many moving parts that large organizations maintain, especially when a great deal of employees shift into the company and out. Unfortunately, these various moving parts are exactly the reason why it is important to have a plan laid out for when one is absent.
"While it is true that the availability of potential leaders is greater at large companies, it doesn’t always mean that the process of succession planning is easier. The environments are different, and there are challenges in organizations of all sizes.” -Beth Miller, Executive Consultant at Executive Velocity
Planning is Possible for All
No matter the organization’s size, industry or location, there will be challenges to face. The goal is to be prepared for whatever may come down the road and a great deal of companies are embracing technology to do just that. In fact, 81% of companies use a software to develop and maintain their succession plan while building their talent pool. Today there is top of the line technology that can help guide candidates through each part of the employee life cycle. Applicant tracking systems and video interviewing ensure that all employees, no matter location, are skilled and a cultural fit. Performance management systems and corporate training programs allow for constant goal reinforcement and the ability to build skills in talented employees.
Larger businesses with HR departments benefit from such tools because they allow centralized team management and observation of the data gathered from such efforts. Smaller companies who do not have the manpower needed for dedicated HR departments can depend on the technology to maintain connection with performance of employees as well as unearth potential room for growth. Gathering information like this allows for better direction of assessments as well as repeatable processes that saves time without sacrificing results — something companies of any size needs.
Succession planning engages employees. With 35% of employees wanting increased training and learning opportunities as well as 21% looking for promotions and carved out career paths, it’s no wonder that 62% of employees feel significantly more engaged in a workplace with a solid succession plan. When workers can see the path their career is on while simultaneously having a stake in it’s direction, they are more likely to work hard to achieve goals and hit deadlines. Embrace tools that will engage employees while simultaneously directing the future business goals.