The Need for Succession Planning in a Volatile Market

When changes in senior leadership suddenly occur within an organisation and there is no strong affirmative succession plan in line, can a company survive? With the market fluctuating both rapidly and unpredictably, the disappearance of valuable members in a company’s body has become more apparent and frequent. A solution that invites continuity that is often overlooked is succession planning; This introduces growth within an organisation, employee morale and progression, and allows for a company to be prepared rather than reactive. If it’s this easy, why is succession planning not being implemented?

The job market is in such a competitive landscape due to economic data release, investor behaviour, geopolitical events and corporate news, and these factors are leading to quiet resignations, client poaching and natural bias to external hires. These stark changes cause companies to scramble and make urgent responses that are not always in their best interest, potentially costing millions as well as tainting the working environment. Whilst succession planning is a reactive response, it doesn’t have to be desperate and disjointed

Proactive succession allows for a range of steps to be taken to ensure stability- steps which should be led by an HR senior. The approach would include identifying critical roles, assessing employees who embody both technical and soft skills that can be nurtured, and investing in internal development such as mentorship, training, and project work. Succession agility will allow the company to pivot no matter the market condition, and using tools in anticipation allows for continuity if a company loses a key employee.

Senior leaders within HR will be key in driving the continuity resulting from succession planning. This role should be conveyed as a strategic partnership as opposed to process ownership because they will be the ones embedding the plans into the workforce. HR will have the knowledge on all candidates that can fill in the gaps when skilled people depart; they know the career aspirations of the people and who the high-potential clients are. They have the understanding and knowledge to communicate transparently with the board and stakeholders, encouraging growth within the company as opposed to external recruitment. This will also boost office morale and progression, which also tackles the quiet disappearances of current employees.

The geopolitical and economic state of the world is taking a toll on businesses globally, and people are rightfully making decisions to better their living situations, but where does that leave the company? Adapting to the ever-changing market demands is crucial, especially during this economic climate, and succession planning, along with the use of HR professionals, can alleviate a lot of future stresses. What are the ways your organisation is future-proofing leadership?

Author sarah.martins Tiger Recruitment Team