Another facet of human resource supply forecasting is succession analysis planning.
Who will replace the retiring chief executive? From what pool of people will top executives be selected, and how will these individuals be groomed for their increased responsibilities?
This method consists of planning for successive position fulfilment by an organisation’s employees internally. It not only provides information regarding potential and eligible candidates but also accounts for training the employees that are capable of holding higher positions in the organization.
How It Works
With this method, human resource planners determine the internal labour supply through a detailed analysis of:
- How many people are currently in various job categories
- Who has specific skills within the organization
They then modify this analysis to reflect expected future changes due to:
- Retirements
- Promotions
- Transfers
- Voluntary turnover
- Terminations
Key Activities in Succession Analysis and Planning
- Analysing the demands of middle-level and professional roles in the organization
- Potential evaluation of existing employees
- Planning the individual career path according to potential, and training them for the respective position
- Enhancing current potential for future performance in higher positions
- Determining the extent of training needed by employees for their potential roles
- Accelerated promotion aligned with future business needs and development
- Planned selection aimed at identifying people capable of meeting both current and future requirements
Why Succession Planning Matters
Succession planning should run parallel to corporate-level strategy and future plans. This ensures:
- Growth opportunities for every employee
- Internal fulfilment of major HR demands by developing internal sources
With succession planning, some organisations also adopt career planning. Career planning includes developing individual careers according to each employee’s potential and training them for a bright future. Importantly, career planning is not limited to internal development — it can also prepare employees for opportunities beyond the organization.
The Changing Landscape of Succession Planning
The traditional system of succession planning is changing.
Conventional HR practices are now giving way to:
- Flexible staffing
- Novel forms and contracts of employment
- Innovative approaches to talent development
Succession Planning Process
Succession planning varies between organizations due to:
- Different resources
- Organizational designs
- Attitudes
Hence, succession planning must be flexible and adaptable to meet diverse needs and support business continuity.
Still, there is a general framework that can guide most departments:
1. Identifying Key Positions or Key Groups
A key position or occupational group can be defined in many ways, but two important criteria are:
- Criticality
- Retention risk
Critical Position
A role that, if vacant, would significantly impact the organization’s ability to operate normally — in terms of:
- Safety
- Equipment operations
- Financials
- Efficiency
- Public reputation
Retention Risk
Refers to roles where departure is:
- Expected (e.g., retirement)
- Likely (e.g., high turnover history)
By evaluating these criteria on a low-to-high scale, organizations can determine which positions require:
- Short-term planning
- Long-term planning
Gap Analysis in Workforce Planning
A gap analysis can also help identify key positions or groups. It’s an invaluable part of workforce planning.
Information that may help identify key positions can include:
- Projected retirements
- Turnover trends
- Skills shortages
- Role complexity
- Impact on business outcomes
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