All employees have different and valued core competencies. To ensure that these competencies are never completely lost, succession planning is extremely important.
This type of planning describes who will replace a person who is no longer there to make their contribution – for whatever reason, whether for a short period or permanently.
People can be ambitious and loyal, but there will always be unpredictability, and key employees may leave the company at any time. In situations like this, it is important to be prepared for change.
What is succession planning?
It is important to have a plan for what to do when an employee with essential key competencies moves on to another role or leaves the company. Succession planning prepares your company for unpredictable situations and makes it easier to handle them.
The primary question to address is: How do we replace employees with specific key competencies when they are no longer there?
Why does a company need a succession plan?
“It's important to have a detailed plan before the situation becomes critical, and you need to start planning now if you haven't already,” says Marcus Åberg, People Plan specialist at Academic Work.
His expertise lies in helping companies develop a long-term plan for their personnel and their employer brand. The lack of succession planning is one of the most critical risk factors, he says.
"Allocate resources now rather than in the middle of an unpredictable situation,” he continues. “Unpredictable situations, such as employees with key skills falling ill at the same time, or a situation that requires you to lay off several employees, can naturally put you in a difficult position.”
Without a detailed succession plan, you risk suddenly finding yourself without key skills, which makes it difficult to move forward with business-critical tasks.
“The essential thing is to ask yourself: Do you know which people in your organization have such key roles and skills? And do you know who can replace them if necessary?” says Markus Åberg.
Definition
Succession planning is the process of identifying and developing future leaders in your company—not just for board members, but for all key roles at all organizational levels. Having such a plan ensures that the company continues to run smoothly when an important employee leaves the company.