Smart Succession Planning - Avoiding the Shortage Surprise

We've all been there - the sudden resignation, the emergency leave, the injury - any case that suddenly removes an integral employee from the workforce.  What can be done to avoid this situation?  As the famous saying goes an ounce of prevention is worth a pound of cure and that is what we're going to dive into today

1 - Have an accurate assessment of the Knowledge, Skills and Abilities (KSAs) within your organization at present

What talent already exists within your organization?  An effective performance management system will allow employers to have a firm grasp on what KSAs exist within their organization should a sudden situation appear.  Additionally a new trend in these performance management systems is to have an area allocated to readiness for promotion - is the employee new to their position and grasping the key concepts of the role or have the mastered their current position, demonstrated leadership capacity and are keen for advancement?  Software from companies such as Ultimate Software are fantastic tools to help create a living database of critical information.  Having this ready and available is essential for any progressive organization to create succession planning charts that have a true status of talent management.

2 - Foster and develop the current talent in your organization

OD gurus are excited by this!  By offering programs to cultivate your talent within the organization they will not only be more prepared for new assignments but will help with overall retention.  The Bureau of Labor Statistics has shown the average length of stay in a job for millennials is only 4.4 years with many citing that new jobs are more "interesting" as a reason for the switch.  We can counteract this trend by offering training programs to build management and leadership abilities, cross-training to build skills and offering diverse assignments to create employees with a diverse background.  Not only is this likely to decrease retention rates but also to create a more sophisticated, able and engaged employee for the company.

3 - Analyze historical data to identify trends and aide in employment forecasting

George Santayana once famously said "those who cannot remember the past are condemned to repeat it."  Reviewing trends in previous employment find correlations with employment needs can help to avoid pitfalls by anticipating future needs.  Some are obvious - such as department stores being busier on the weekends - while others may be hidden within the numbers.  Using linear regression (or better yet multiple variable regression) analysis can help to unearth vital information for talent management planning.  Additionally HR-related metrics should be utilized, such as fill time and outlay costs, to best plan for these situations to have the right people ready at the right time.

4 - Decide whether to hire internally or externally (or both)

Sometimes it can be a difficult decision to promote from within or to look to the outside market for a particular hire.  Both methodologies have their advantages - internal employees have acclimated to company culture, usually have a good idea of the expectations and also gives companies a good idea of their abilities and work ethic before entering a new role.  However, external hiring can infuse an organization with a new perspective, avoid "group-think" by bringing in new ideas and backgrounds and enhance a diverse workforce.  Most strong companies use both strategies to achieve a balance to glean the most from their present workforce and maintain employee engagement while maintaining a leading edge by bringing in outside talent as well.

5 - Build and foster connections in advance - Network, network, network!

A trusted colleague of mine gave me great words of wisdom saying that one should develop their network before they need it.  If your organization needs architects, participating in a professional organization's meetings is a good idea.  Looking for talent from college or universities?  Building relationships with their career center or professors is a good bet.  How about holding an open house or networking function at your headquarters?  These are all excellent ways to build relationships and rapport with local talent in the community that can be utilized if the surprise shortage ever does occur.  

Of course there are many other valuable strategies that exist but these are a few of my personal favorites.  Any thoughts or comments are appreciated!

Kevin