Speaker 1: Succession planning is a helpful tool when key employees leave your organization, whether for retirement or another role elsewhere. But internally preparing for this future possibility, you can make the transition simple and effective. But what exactly is succession planning and how does it work? Today I will answer these questions and offer key ways to implement an effective succession plan in your organization. So let's dive in. What is succession planning? Succession planning is an organizational strategy implemented to pass leadership responsibilities down to another employee or group of employees. The system's goal is to ensure a smooth transition after key employees move on to new companies, retire, or pass away. The process of succession planning prepares experienced employees to eventually assume key roles when they become available. Succession planning is popular for C-suite positions in large organizations, but it is just as useful for small and mid-sized companies and may even be more necessary. Consider these factors. Despite your best retention efforts, people in key roles sometimes leave. In addition to the great resignation, many organizations are feeling the effects of higher than projected rates of retirement impacted by the pandemic. Recruitment and training are expensive, especially for roles that involve specialized skills. For example, a salesperson with especially strong customer relationships or a technician with decades of experience using your organization's equipment can be as difficult a loss as a high-level executive. And regardless of the role, transparency about employee growth within the organization is good for morale, productivity, and retention. What are the benefits of succession planning? Succession planning requires a significant time investment upfront, but the payoff is huge when an employee does leave and your organization is not left scrambling to recruit and hire a replacement. One of the great things about succession plans is that they are proactive, not reactive. Succession planning is also a great tool for retention and morale. Promoting from within can help you maintain your best talent, and a transparent succession plan can help keep them happy and productive as they know they have a path to growth at your organization. When succession plans are done right, they help you walk the talk. Most companies market themselves as great places to work, but succession plans can help you back this up. Internal hiring, professional development, and transparent succession planning all show that companies prioritize their employees as the valuable team members they are. How can you establish a succession plan? Plan in advance. Remember that succession planning is a proactive approach, not a reaction to rumors of a vital team member leaving. Keep in mind that strong succession plans can involve up to three years of strategic planning and training. Identify key roles now. Who in your current workforce is especially valuable? Whose loss would have the most immediate and wide-reaching effects? Start developing succession plans for those roles that extend beyond just the next position in the organizational chart. Work with departments. Speak with other teams to find out which roles are most impactful for them, and who on their team might be well-positioned to transition if someone leaves. It's also a good idea to encourage cross-functional collaboration among departments, as high potential employees could also come from other teams. Be transparent with employees. Talk to those in your talent pools about their goals, and show trust in their potential without promising particular roles. Incorporate their training progress into existing performance management by making it part of weekly one-to-one meetings with their manager. Foster diversity in training. This includes demographic diversity through intentional D, E, and I initiatives, as well as a variety of skills, talents, and perspectives. Be open and creative in who you consider for training in your succession plan, as a fresh viewpoint can sometimes be as valuable as an experienced one. That's it for this HR FAQ. If you want to learn more HR best practices, subscribe to our channel and ring the bell to get notifications about the latest HR Party of One and HR FAQ episodes. As always, thanks for watching.