Making a success of succession planning in 2011
 |
Succession planning is highly rated by employers as a means of managing talent and boosting retention, latest XpertHR benchmarking research reveals. Succession planning can be a cost-effective method to boost retention, build organisational talent pools and ensure that critical posts are filled. Impact of succession planning The majority of employers surveyed by XpertHR believe that succession planning makes a strong positive contribution to the following areas: talent management; retention; business success; organisational development; and value for money. |
However, succession planning is considered less effective when it comes to diversity issues.
Subscribers to XpertHR Benchmarking can drill down to the complete benchmarking data from the 2011 succession planning survey. The survey is based on data from 146 organisations with a combined workforce of more than 420,000 employees.
HR takes lead responsibility for succession planning
Primary responsibility for succession planning tends to fall to HR and senior management, with HR most likely to take the lead in the majority of organisations.
More than half of employers surveyed by XpertHR operate a succession planning process.
But traditional succession planning methods - which tend to be hierarchical, methodical and lacking in transparency - are now relatively uncommon. Employers are more likely to take an informal approach to succession planning.
The remaining employers do not use or have never used succession planning. The most frequently cited reasons for not using succession planning are:
- it is not considered to be a business priority;
- lack of resources/HR expertise; and
- low staff turnover.
Formal succession planning
Formal approaches to succession planning also tend to be restricted to the most senior roles.
The most common methods of formal succession planning are to take a centralised, corporate approach, use devolved models (in which succession planning is managed by local business units, sites or countries), or to use both approaches in parallel.
The key objectives of formal succession planning processes are identifying potential successors (with slightly more using formal succession planning to identify short-term successors, rather than long-term successors) and developing talent within the organisation.
Other key findings on formal succession plans include:
- The most common ways to identify successors are via the use of competencies and relying on line managers to identify and assess likely successors.
- Planning for "pools" of jobs is a relatively uncommon objective.
- Only one organisation in three acts to ensure diversity among employees identified as successors.
Informal succession planning
Employers increasingly favour informal approaches to succession planning. These tend not to be restricted to executive/senior roles, and also offer greater transparency and flexibility.
However, a number of those employers using informal succession planning are considering developing a more formal approach.
You can also access XpertHR's detailed written analyses of the survey findings: Succession planning: employer practice and Informal versus formal succession planning strategies.
Michael Carty, benchmarking editor
